The Central Board of Direct Taxes dashed hopes of all taxpayers ready for additional extension of due dates for submitting tax returns rejecting all illustration on this regard, citing that the method can’t be delayed ‘indefinitely’ and hamper the functioning of the tax division and welfare programmes of the federal government.
The choice implies that particular person taxpayers who’ve missed the January 10 deadline for submitting returns might now need to pay a penalty to finish the method. Equally, taxpayers who must file audit report earlier than submitting returns may have to take action by January 15 and file their returns by February 15.
The revenue tax division had obtained a number of representations to additional lengthen dates for submitting returns as disruptions precipitated pandemic had continued to create issues for varied taxpayers. The suggestion was to increase dates for all classes of taxpayers to March 31.
In its workplace order directing all tax formation throughout the nation to see the due dates for tax fee is adopted as no additional extensions have been due, the CBDT cited that the contentions of lesser variety of audit stories filed this yr and thereby extension was required, as fully baseless. It mentioned that even in earlier years audit stories have been filed in the previous few days earlier than the deadline and comparable tendencies have been seen even in 2020-21.
The board additionally cited that India has been extra beneficiant in comparison with different world economies, notably, Covid hit the US and UK, in offering reduction to its taxpayers on compliance points.
Furthermore, the statistics of returns filed this yr clearly reveals that the numbers are greater than final yr already. In 2019-20, about 5.62 crore revenue tax returns have been filed until due date and this yr (2020-21) already 5.95 ITRs have been filed (as much as January 10).
Any additional extension would adversely have an effect on the return submitting self-discipline and shall trigger injustice to those that have taken pains to file the return earlier than the due date, CBDT mentioned in its order.
It is going to additionally hamper the federal government’s efforts to supply reduction to the poor throughout Covid occasions, the workplace order mentioned.