On consideration of difficulties reported by the taxpayers and other stakeholders due to COVID and in electronic filing of various reports of audit under the provisions of the Income-tax Act, 1961 (the Act), the Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing of Income Tax Returns to 15th March, 2022.
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 and 28th February, 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is further extended to 15th March, 2022.
It is also clarified that the extension of the dates as referred to in clauses (12) and (13) of Circular No.9/2021 dated 20.05.2021, clauses (4) and (5) of Circular No.17/2021 dated 09.09.2021 and in clauses (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh. Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act.
Extension of dates a breather: PHDCCI
After the spread of the Covid virus in the 1st of week of January 2022, all the offices have witnessed 10-20 percent attendance. In such a scenario, it was not possible to complete tax audits by 15th January and do other compliance subsequently. The extension of the due dates comes as a breather to corporates and Tax consultants, said Mukul Bagla, Chair, Direct Tax Committee, PHDCCI.
However, such extension will result in late completion of work for FY 2020-21 and delayed start to compliance work for FY 2021-22. Also as the pressure is released, the work will get piled up at the time of the revised due date. Also other statutory compliances and assessment proceedings under income tax act need to get completed by 31 March, 2022 and all deadlines will lie together resulting in work pressures in the month of March, 2022. Also in most cases as the tax liabilities have not been worked out for year 2020-21, the taxes will need to be paid with interest u/s 234B and 234A of the Income Tax liability resulting in huge aggregate interest liability of 24 percent.
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