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Gujarat High Court refuses to extend I-T returns filing date

The Income-tax division additionally submitted that the variety of returns filed this year has already exceeded by about 6% to 5.95 crore as on January 10, 2021, in contrast with 5.62 crore as on August 31, 2019 (final date of return filing).

The Gujarat High Court has rejected a plea looking for additional extension of the due date for the filing of revenue tax (I-T) returns by companies and professionals coated below Section 44AB of the I-T Act from February 15 to March 31.

“We have concluded that we should not interfere in the matter,” the Court mentioned listening to a particular civil application by the All-Gujarat Federation of Tax Consultants. “In the result, bot the writ applications fail and are hereby rejected. At this stage, we may only observe that the CBDT may consider issuing an appropriate circular taking a lenient view as regards the consequences of late filing of the Tax Audit Reports as provided under Section 271B of the Act. We leave it to the better discretion of the CBDT in this regard.”



An assessee wants to be audited below Section 44AB if his/her annual gross turnover/receipts in business exceed Rs 1 crore whereas it’s Rs 50 lakh in case of execs. In case of failure to get accounts audited, the Income Tax Act part 271B prescribes that the Assessing Officer might direct that such particular person shall pay, by the use of penalty, a sum equal to one­ half per cent of the whole gross sales, turnover or gross receipts, because the case could also be, in business, or of the gross receipts within the occupation, in such earlier year or years or a sum of 100 fifty thousand rupees, whichever is much less.

Due to the Covid-19 pandemic, the due dates for filing of return/tax audit have already been prolonged on three events. The newest extension is from January 31 to February 15 for assesses whose accounts want to be audited below Section 44AB.

“Any further extension would adversely affect the return filing discipline and shall also cause injustice to those who have taken pains to file the return before the due date. It would also postpone the collection of revenue thereby hampering the efforts of the Government to provide relief to the poor during these Covid times,” the CBDT submitted to the Court.

The principal argument of the writ candidates was that delay in releasing the utilities for filing the Tax Audit Reports and Income Tax Returns has diminished time accessible for tax consultants to file returns for purchasers and put stress on their manpower.

The CBDT submitted that the modifications led to within the ITR by the use of an replace don’t quantity to including or extending the fields. It is barely rising or making modifications within the character of the prevailing fields to allow sure minuscule taxpayers to report accurately which they may not have been ready to in any other case.

The Income-tax division additionally submitted that the variety of returns filed this year has already exceeded by about 6% to 5.95 crore as on January 10, 2021, in contrast with 5.62 crore as on August 31, 2019 (final date of return filing).

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