Income tax audit report deadline to end on Sept 30: Who needs to file and how to submit it online

• September 25, 2024
• CA Chandan Agarwal's Office

Tax audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint.

The deadline to submit income tax audit reports on the e-filing portal is approaching. Taxpayers required to undergo a tax audit must upload their reports by September 30, 2024.

Missing this deadline could lead to penalties and further delays in income tax filings.

What is a tax audit?

As the name itself suggests, tax audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint.

It makes the process of income computation for filing of return of income easier.

Who needs to submit a tax audit report?

Certain individuals and entities are mandated by the Income Tax Act to file an audit report.

The key categories include:

• • Businesses with gross turnover exceeding ₹1 crore.

• • Professionals earning over ₹50 lakh in annual receipts.

• Companies across all turnover levels.

• • Other specific cases as outlined by tax regulations, including those opting for the presumptive taxation scheme but failing to meet certain criteria. These taxpayers must have their accounts audited by a Chartered Accountant, who prepares the audit report (Form 3CA/3CB and Form 3CD) for submission.

How to submit the audit report

Taxpayers should follow these steps to ensure submission:

• • Get the audit completed: Ensure your auditor prepares the report, verifying all details for accuracy.

• • Log in to the income tax e-filing portal: Use your credentials to access the e-filing website.

• • Access the upload section: Navigate to the relevant section for filing audit reports.

• • Select the correct assessment year: Choose the appropriate year for which the audit is being filed.

• • Upload the report: Follow the instructions to upload the completed report (Form 3CA/3CB and 3CD).

• • Confirm submission: After uploading, confirm that the report has been successfully submitted.Tax experts urge taxpayers to avoid waiting until the last moment.

Yeeshu Sehgal, Head of Tax Markets at AKM Global, said, “As of now, there haven’t been any widespread or officially acknowledged major glitches observed that would prevent taxpayers from meeting the deadline of tax audit reports. They should still be able to submit their tax audit reports by the deadline, and it is always advisable to start the process early and not wait for the last date.”

Consequences of missing the deadline

Failing to upload the audit report by September 30 can result in:

• • Penalties under Section 271B, which can be 0.5% of turnover or gross receipts (up to a maximum of ₹1.5 lakh).

• Delays in filing the Income Tax Return (ITR), which may lead to additional interest and penalties.

Source: https://www.cnbctv18.com/personal-finance/income-tax-audit-report-submit-deadline-last-day-september-30-how-to-file-online-19480931.htm