CBDT extends deadline to Dec 15 for taxpayers with overseas transactions

This extension is applicable to taxpayers who have global transactions and are needed to provide reports under Section 92E

The Central Board of Direct Taxes (CBDT) has announced a 15-day extension for filing the income tax return (ITR) for taxpayers involved in international transactions and obligated to furnish reports under Section 92E. The new deadline for FY 2023-24 (AY 2024-25) is now December 15, 2024.

 

“The due date for furnishing the return of income in case of taxpayers that are subject to Transfer Pricing (TP) audit in respect of its international transactions under Section 92E of the Income-tax Act and are required to file the report in Form 3CEB is ideally 30 November of the Assessment Year (AY). The Central Board of Direct Taxes (CBDT) has extended the due date of furnishing return of income for the AY 2024-25 (FY 2023-24) in case of above mentioned Assessees from the erstwhile 30 November, 2024 to 15 December, 2024 vide Circular No. 18/2024 dated 30 November, 2024,” said Rajarshi Dasgupta, executive director-Tax, AQUILAW. 

 

“This extension will be a sigh of relief for those taxpayers subject to TP audit, who may be facing issues while complying with process of filing return and will save the interest cost on belated filing and enable the taxpayers to carry forward its losses if the return is filed on or before 15 December, 2024,” he said.

 

Ankit Jain, partner, Ved Jain & Associates, explains who is required to file a report under section 92E?

 

A report under Section 92E is mandatory for taxpayers who have entered into international transactions or specified domestic transactions with related parties. This requirement typically applies to:

 

-Indian subsidiaries of multinational corporations (MNCs).

 

-Indian companies with foreign subsidiaries.

 

-Joint ventures or partnerships between Indian and foreign entities.

 

These entities must file a transfer pricing report in Form 3CEB, certified by a Chartered Accountant, to ensure compliance with transfer pricing regulations.

 

The due date for filing tax returns for such taxpayers is November 30 of the assessment year. However, per the latest circular, this has been extended to December 15, 2024. Importantly, the deadline for submitting Form 3CEB remains October 31, 2024, and this has not been extended.

 

What are the penalties for not filing a report under section 92E?

 

“A penalty of Rs 100,000 can be levied on a taxpayer who fails to furnish a report in accordance with section 92E of the Income Tax Act, 1961,” said Kunal Savani, partner, Cyril Amarchand Mangaldas.