A detailed examination of the financial records of a company or a professional, such as a doctor, lawyer, or chartered accountant (CA), constitutes an income tax audit. specific taxpayers whose business or professional income above a specific threshold are required to perform an income tax audit. The deadline for submitting the income tax audit report has been set by the income tax department.
When must the tax audit report be submitted?
The tax audit report must be submitted on or before September 30 of the relevant assessment year by those who are required to have their books audited.
Therefore, those people who earned more than the required amount for an audit in FY 2022–23 (AY 2023–24) must have their income audited by September 30, 2023, and their income tax audit report must also be filed to the ITR portal by that date.
The deadline for uploading an income tax audit report by a fund, trust, educational institution, university, hospital, or other medical institution has been extended by the Central Board of Direct Taxes (CBDT) until October.
According to a circular issued by the CBDT on September 18, 2023, “the due date of furnishing Audit report under clause…. of the Income-tax Act, 1961, in the case of a fund, trust, or institution, any university or other educational institution, any hospital or other medical institution, for the Previous Year 2022-23, which is September 30, 2023, is hereby extended to October 31, 2023.”
The Income Tax Act requires charitable trusts, educational institutions, hospitals, and universities that qualify for an income tax exemption to file Form 10B or Form 10BB if a tax audit is necessary. The new auditing regulations and forms were implemented on April 1, 2023, however, they could only be filed as of the end of August 2023. The deadline for submitting the aforementioned documents has been moved from September 30, 2023, to October 31, 2023, in light of the difficulties taxpayers are currently experiencing.
What is the deadline for filing ITRs that include audit reports?
For persons who are subject to a tax audit under Section 44AB, i.e., those with business or professional income above a predetermined threshold, the final date for submitting an ITR on the e-filing ITR portal is October 31, 2023.
If the income tax audit report is not uploaded, the filed ITR will be deemed invalid. Note that the deadline for filing an ITR differs if an organization is subject to a tax audit under any other section except section 44AB.
Imagine that under section 44AB for the fiscal year 2022–23 (adjusted fiscal year 2023–24), a person with business or professional income above a certain threshold must perform an income tax audit. Therefore, before September 30, 2023, he or she must upload the audit report and have their books of accounts examined by a tax auditor. Afterward, by October31, 2023, file his or her ITR.
Individuals with company or professional income whose books of accounts must be audited often file ITR-3 by October 31 of the relevant assessment year. However, they must wait until September 30, 2023, for FY 2022–2023 (AY 2023–2024), to upload their tax audit report before filing an ITR.
Individuals with company or professional income whose books of accounts must be audited often file ITR-3 by October 31 of the relevant assessment year. However, they must wait until September 30, 2023, for FY 2022–2023 (AY 2023–2024), to upload their tax audit report before filing an ITR.
Hospitals, universities, and other qualifying educational institutions must submit Form ITR-7. The deadline for filing ITR-7 has been moved from October 31 to November 30, 2023, because Form 10B/10BB must be submitted one month before the ITR filing deadline.
According to a frequently asked questions document by the Income tax department, ITR-7 is used by entities that are required to file ITR under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D).
Has the deadline for filing an income tax audit been pushed back?
Only charitable trusts, educational institutions, hospitals, and universities that qualify for income tax exemption and must file Forms 10B and 10BB have extended the deadline for income tax audits. Others continue to use September 30 as the date.
When must ITR and audit report be submitted by?
For people who are subject to an income tax audit under section 44AB, the deadline to submit an ITR is October 31.
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Who is subject to a tax audit under section 44AB, and what are the ITR forms they use?
Individuals with business or professional income who are subject to tax audit under section 44AB typically use ITR-3.