The Central Board of Direct Taxes (CBDT) has announced a significant update for taxpayers concerning the filing of Income Tax Returns (ITR) for the Assessment Year (AY) 2024-25. This comes as a relief for many, as the due date for filing audited returns has been extended from October 31, 2024, to November 15, 2024, through Circular No. 13/2024, dated October 26, 2024.
Key Highlights of Circular No. 13/2024
Extension of Due Date
The deadline for furnishing the Return of Income under Section 139(1) of the Income Tax Act has been extended from October 31, 2024, to November 15, 2024. This extension specifically applies to assessees mentioned in clause (a) of Explanation 2 to sub-section (1) of Section 139. The extended timeline aims to accommodate taxpayers and ensure timely compliance with income tax regulations.
Who Benefits from the Extension?
The extension applies to the following categories of taxpayers:
- Companies: Entities that are required to undergo tax audits.
- Tax Audit Individuals: Individuals, other than companies, who are liable for a tax audit.
- Partners in Audited Firms: Partners in firms that are subject to tax audits.
By extending the due date, the CBDT aims to offer flexibility and ease to taxpayers facing challenges during the filing period. The CBDT has exercised its powers under Section 119 of the Income Tax Act to facilitate this change.
Reasons for Extension
The CBDT cited the need to support taxpayers in fulfilling their obligations amid various challenges, which can arise during the filing season. Extending the due date helps ensure better compliance and accommodates potential technical issues or delays that taxpayers may face.
Official Circular and Its Implications
According to Circular No. 13/2024, the due date for furnishing ITRs under Section 139(1) has been officially moved to November 15, 2024. This update is particularly crucial for businesses and individuals undergoing audits, as it provides them with additional time to accurately compile and submit their financial information.
This extension is a reminder for taxpayers to ensure their tax filings are complete, accurate, and submitted within the stipulated timeline to avoid penalties and other consequences. By adhering to the revised deadline, taxpayers can benefit from a smoother filing process and avoid last-minute stress.
Practical Takeaway for Taxpayers
If you fall into any of the categories mentioned, it is essential to utilize the extended time effectively. Consult with your tax professional to make sure all documentation and details are prepared, ensuring your return is filed well before the new deadline. This proactive approach can help you avoid potential complications and penalties for late filing.
Conclusion
The extension of the due date for audited ITR filings until November 15, 2024, is a welcome move by the CBDT to accommodate taxpayers and alleviate pressure during the filing season. It provides much-needed relief for companies, individuals undergoing tax audits, and partners in audited firms. Taxpayers are encouraged to use this extension wisely to ensure accurate and timely compliance.
FAQs
- What is the new due date for filing audited ITRs for AY 2024-25?
- The new due date is November 15, 2024.
- Which taxpayers are eligible for this extension?
- Companies, individuals liable for tax audits, and partners in firms that require tax audits.
- Why has the due date been extended?
- The CBDT extended the due date to provide relief to taxpayers facing challenges during the filing period, ensuring better compliance.