CBDT has extended the deadlines for filing ITRs and submitting tax audit reports for FY 2020-21.

For the fiscal year 2020-21, the Central Board of Direct Taxes (CBDT) has extended the deadlines for filing tax audit reports and income tax returns for a select group of taxpayers. The income tax agency announced this in a news statement on January 11, 2022.

The ITR deadline extension has come after many taxpayers urged the tax department and finance ministry to extend the ITR reporting dates due to the mounting coronavirus cases and challenges with the new income tax system. “On consideration of difficulties reported by the taxpayers and other stakeholders due to COVID and in electronic filing of various reports of audit under the provisions of the Income-tax Act, 1961, the Central Board of Direct Taxes has decided to further extend the due dates for filing of income tax returns and various reports of audit for the assessment year 2021-22,” said the press release.

Various tax organisations, taxpayers, and tax professionals have petitioned the government to extend the deadline for submitting tax audit reports and filing ITRs for this group of people. The hashtags were trending on Twitter, with tax experts and numerous chartered accountant groups pleading with the government to extend the deadlines.

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According to the department’s news release:

  • The due date of furnishing of report of audit under any provision of the Income-tax Act for the financial year 2020-21, which was 30th September, 2021, in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the I-T Act, as extended to 31st October, 2021 and 15th January, 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is further extended to 15th February, 2022;
  • In the case of assessees referred to in clause (aa) of Explanation 2 to sub-section (1) of section 139 of the Act, the due date for producing an audit report under any provision of the I-T Act for the financial year 2020-21, which was 31st October 2021, has been extended to 15th February 2022.
  • The due date for furnishing a Report from an Accountant by persons entering into international transactions or specified domestic transactions under section 92E of the Act for the previous year 2020-21, which was 31st October 2021, has been extended to 30th November 2021 and 31st January 2022, respectively, by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021.
  • The due date for furnishing a return of income for the financial year 2020-21 (assessment year 2021-22), which was 31st October, 2021 under sub-section (1) of section 139 of the Act, was extended to 30th November, 2021 and 15th February, 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is now extended to 15th March, 2022;

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“It is also clarified that the extensions of the dates referred to in clauses (12) and (13) of Circular No.9/2021 dated 20.05.2021, clauses (4) and (5) of Circular No.17/2021 dated 09.09.2021, and in clauses (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses I to Further, The tax paid under section 140A of the Act within the due date (without extension under Circular No. 9/2021 dated 20.05.202, Circular No. 17/2021 dated 09.09.2021 and as above) provided in that Act shall be deemed to be the advance tax in the case of an individual resident in India referred to in sub-section (2) of section 207 of the Act.”

“The CBDT’s announcement earlier today that the deadlines for filing tax returns and some audit reports will be extended to March 15 and February 15 is a huge relief, given the difficulties faced by both taxpayers and their advisors due to emerging virus variants and faults in the online portal. The announcement’s timing, in particular, reduces anxiety for all parties involved “Vishweshwar Mudigonda, Partner at Deloitte India, echoed this sentiment.

Do keep in mind that for people (who accounts are not needed to be audited) filing income tax return using ITR-1, ITR-2 and ITR-4, the deadline for ITR filing for FY 2020-21 has ended on December 31, 2021.