The Income Tax Department of India has extended the income tax return filing deadline for businesses to October 15 from the original date of September 30. This is applicable for companies that require their returns to be audited. With this extension, businesses and auditors will now have ample time to reconcile their tax returns with their GST figures. The Central Board of Direct Taxes (CBDT) noted that the due date has been extended as per the requirements of various stakeholders.
While the deadline has been extended by 15 days for filing returns, the due date for paying the outstanding taxes still remains the same at September 30. Any delay in tax payment after the deadline will attract a substantial interest from the CBDT. Since there is no immunity from interest for taxes, many businesses are likely to file the returns within the original deadline.
Businesses are all set to file IT returns for the fiscal year 2017-18. This is the first time that businesses have to file income tax return after the GST has been rolled out. This deadline extension comes as a relief for businesses as they need some additional time to match their GST returns with their tax liabilities.
The request for extending the income tax return deadline has been made by various business entities and other parties involved in the filing process. This extension also comes as a relief for auditors and chartered accountants. They can use the additional time to reconcile their account books and report the correct figures to the IT department.
Following the introduction of GST in July 2017, it has now become mandatory for businesses to reconcile their input tax credit, sales figures, tax liability, etc., with the same figures reported in the GST. The government does not allow mismatch in the reports as it would result in irregular IT return and tax audit report.
Source: Financial Express