The deadline for eligible taxpayers to submit their income tax audit report on the e-filing ITR portal is September 30, 2024. Not all taxpayers need to meet this deadline, and some may not even be required to undergo an income tax audit. However, failing to file the audit report when required can lead to significant consequences.
Two key issues arise if the tax audit report is not uploaded on time:
Income tax audit requirements are governed by Section 44AB of the Income Tax Act, 1961. The deadline for filing the audit report for the financial year 2023-24 (assessment year 2024-25) is September 30, 2024. The rules vary depending on whether the taxpayer is a business, professional, or using a presumptive taxation scheme.
A tax audit is mandatory for businesses if:
Tax professionals need to undergo an audit if:
Taxpayers under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE, 44BB, or 44BBB) must get a tax audit done if:
Penalty: Failing to complete the tax audit by the due date can result in a penalty, which is the lower of:
While there are no explicit provisions for filing the tax audit report after the deadline, it may be possible to file the report belatedly. However, late filing will likely attract a penalty.
Defective ITR: If the tax audit report is not filed even after the deadline (even with a penalty), the tax authorities may treat your income tax return as defective. Filing the tax audit date is mandatory in the ITR form, and failure to do so can lead to this issue.
For taxpayers required to file a Transfer Pricing report in Form 3CEB, the deadline to submit the tax audit report is extended to October 31, 2024.
If you fall under any of the categories requiring a tax audit, ensure that your audit is completed and the report is uploaded by the September 30, 2024 deadline to avoid penalties and issues with your ITR filing. Make sure to consult your accountant or tax professional to confirm whether or not you need to conduct a tax audit and meet the filing requirements.
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