CA Pratibha Goyal | Sep 24, 2023 |
Tax Audit Due Date should be extended? Penalty for Non-Filing TAR
The Due Date for filing Tax Audit Reports (TAR) as per the Income Tax Act for Financial Year 2022-23 (Assessment Year 2023-24) is 30th September 2023.
Some reasons why the due date should be extended:
Well, 30th September is not only the due date for TAR but other compliances as well. The other compliances to be done by 30th September are:
September and October are full of many important festivals. So a 15-day extension would not hurt.
The Tax Audit Form requires more extensive reporting, for example in the case of clause 44 and the Tax Professional needs more time to prepare it.
If any taxpayer is required to get the tax audit done but fails to do so, the least of the following may be levied as a penalty: 0.5% of the total sales, turnover, or gross receipts. Rs 1,50,000.
Penalty is not Automatic, but subject to Adjudication.
Penalty will not be levied if the taxpayer is able to give reasonable cause for not filing the TAR. Some of the instances where Tribunals/Courts have accepted as “reasonable cause” are as follows:
(a) Resignation of the tax auditor and consequent delay;
(b) Bona fide interpretation of the term `turnover’ based on expert advice;
(c) Death or physical inability of the partner in charge of the accounts;
(d) Labour problems such as strike, lockout for a long period, etc.;
(e) Loss of accounts because of fire, theft, etc. beyond the control of the assessee;
(f) Non-availability of accounts on account of seizure;
(g) Natural calamities, commotion, etc.
(i) Resignation of the accountant and his consequent non-cooperation.
(j) Official E e-filing portal (of the Income-tax department) failure
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