NEW DELHI :
The federal government on Tuesday gave further time to companies for submitting their tax returns and audit stories for the monetary yr ended 31 March, 2021, which have been prolonged a number of occasions prior to now.
The relief is given in view of the difficulties confronted by companies and professionals because of the pandemic and in digital submitting of paperwork.
Accordingly, companies which have been to file their company tax returns by 15 February and 28 February (these needing switch pricing audits) respectively—each beforehand prolonged due dates–can now file their tax returns by 15 March, mentioned an official order. Switch pricing audits apply to multinational firms having cross border transactions.
The order from the Central Board of Direct Taxes mentioned that the due date for furnishing tax audit stories and switch pricing audit report for FY21 can be 15 February.
Additionally, the due date for furnishing report from an accountant by individuals getting into into worldwide transactions or sure specified home transactions for which the already prolonged due date was 31 January is additional prolonged to fifteen February. Sure home transactions equivalent to these between a unit in a particular financial zone and people in a home tariff space are handled like cross-border transactions.
Consultants mentioned the federal government accepted requests for extension of due dates in view of rising circumstances of coronavirus infections. “This may come as an enormous aid for company taxpayers. No aid has been prolonged to salaried class people and small non-auditable enterprises working as particular person/Hindu Undivided Household (HUF),” mentioned Rajat Mohan, senior companion with AMRG & Associates, an accounting agency.
For the reason that prolonged due date for submitting earnings tax return is now 15 March 2022, which may be very shut to finish of related evaluation yr (AY) 2021-22, the federal government might not have scope for any additional extension for such compliances for this yr, defined Shailesh Kumar, companion at Nangia & Co LLP, a consultancy.
The federal government, nonetheless, didn’t grant aid from the curiosity chargeable if the tax legal responsibility exceeds Rs. one lakh. Curiosity for delay in submitting tax return is levied at 1% a month. “Thus, if the self-assessment tax legal responsibility of the taxpayer exceeds Rs. one lakh, he can be liable to pay curiosity beneath part 234A of the Revenue Tax Act from the expiry of the unique due dates,” defined Rahul Singh, Deputy Common Supervisor at Taxmann, a writer of regulation books.
Supply: Live Mint