Companies get more time to file tax returns: What they should do next

Tax department's decision also expected to help professionals with complex finances, according to one expert

Companies’ deadline for filing Income Tax returns (ITR) has been extended from October 31 to November 15, 2024. Before that, the deadline for electronic filing of tax audit reports was also extended: From September 3 to October 7, 2024.

 

The CBDT announced the new dates in a circular dated October 26.

 

For taxpayers who either run businesses or are professionals with complex finances, filing tax returns can be burdensome and time consuming. The new dates will ensure that all financial records are thoroughly examined without any added pressure of a tight deadline, said Alay Razvi, managing partner at Accord Juris.

 

Kunal Savani, partner at Cyril Amarchand Mangaldas, explained who must file ITR by November 15.

 

a) Any corporate assessee

 

b) Any non-corporate assessee whose books of account are required to be audited under the Income Tax Act (I-T Act) or any other law for the time being in force

 

c) Any partner of a firm whose accounts are required to be audited under I-T Act or any other law for the time being in force or the spouse of such partner if the provisions of Section 5A (apportionment of Income between spouses governed by the Portuguese Civil Code) applies to such spouse).

 

For whom the ITR filing deadline is not extended:

 

Extension does not imply for tax audit under sections 44AB and transfer pricing audit under section 92CE of the Income-tax Act, 1961.

 

Rahul Sateeja, partner at DMD Advocates, explained what happens if someone fails to file ITR by November 15.

 

Defaulters attract a fee of Rs 5,000 if total income is Rs 5 lakh or more. The fee will be Rs 1,000 in other cases under section 234F.

 

Interest at 1 per cent per month or a part thereof under section 234A.

 

Disallowance of carry forward of losses to subsequent years under section 80.

 

Disallowance of special income-based deductions under section 80AC.

 

Initiation of Prosecution in rare cases which may extend up to 7 years if ITR is not filed until the end of relevant AY i.e. March 31, 2025 under section 276CC.

 

Taxpayers have to option file a belated return under section 139(4) on or before 31.12.2024 (as of now).