3 Important Deadlines on 30th September 2024

The September month is going to end soon. However, the compliance for taxpayers and professional individuals hasn’t been completed yet.

Some important deadlines are lined up in this month of September 2024. The tax audit report, Filing of DIN KYC and dematerialization of shares deadline, all in the month of September.

Tax Audit Report

The deadline for submitting an income tax audit report under Section 44AB of the Income Tax Act of 1961 for AY2024-25 is September 30, 2024. This is for corporate-assessee or non-corporate assessee (who is required to submit his/her return of income on October 31, 2024).

[The due date for filing Tax Audit for the Previous Year 2023-24, which was 30th September 2024 has been extended to 07th October 2024.]

DIN KYC

September 30, is the deadline for filing DIN KYC.

Amidst all the Tax Audit chaos, don’t forget that 30th September 2024 is also the due date to do “DIN KYC”. File it on time, otherwise, your DIN will get deactivated.

According to Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, any individual who is assigned a DIN as of March 31st of a financial year must submit his KYC by September 30th of the following financial year.

If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’ and shall remain in such Deactivated status until KYC is done with a fee of Rs.5000. This means the director cannot perform any duties linked to their directorship until the DIN is reactivated.

Dematerialization of Shares

The deadline for dematerialization of shares for most private companies in India is September 30, 2024.

Small companies are exempt from this rule. A small company is defined as a private limited company having a paid-up capital of less than Rs.4 crore and a revenue of less than Rs.40 crore. Even if they meet the criteria outlined above, holding companies and subsidiaries of a corporation are not considered small companies.

Companies that no longer fit the small company criterion after March 31, 2023, will have 18 months to comply with the dematerialization norms. For example, if a company’s financial year concludes on December 31, 2023, the deadline will be June 30, 2025.

Lately, MCA has extended the compliance deadline for the mandatory dematerialization of existing shares, which is a significant relief for producer companies. The deadline, which was originally scheduled for September 30, 2024, has been moved to March 2028, providing these businesses an extra five years to fulfill the requirements.