Tax return and audit reports filing due date for tax year 2018-19 applicable to taxpayers liable for audit is extended to 31 October 2019

As per the Indian tax laws (ITL) ^[1], in case of taxpayers ^[2] being:

(a) company or
(b) other taxpayers whose accounts are required to be audited under the ITL or any other law for the time being in force or
(c) working partner of a firm whose accounts are required to be audited under the ITL or any other law for the time being in force,

the due date for submission of their tax returns for tax year 2018-19 is 30 September 2019. Further, if a taxpayer  furnishes tax return after the due date, but before 31 December of the following tax year, the taxpayer is liable for payment of late fee^[3] of INR 5,000. On further delay, the fee increases to INR 10,000.

The Central Board of Direct Taxes (CBDT) ^[4]  vide order dated 27 September 2019^[5] (Order) has extended the due date for filing tax return and various reports of audit in relation to tax year 2018-19 for aforesaid category of taxpayers who are liable to file their tax returns by 30 September 2019 to 31 October 2019. The extension is granted primarily due to difficulties being faced by taxpayers in furnishing the tax returns for various reasons including availability of limited time with tax professionals for completion of audits, floods in certain parts of the country, etc.

Further, since the time prescribed under the ITL for furnishing tax return itself is extended, fee for late filling of tax return may also not be leviable for the tax returns filed up to 31 October 2019.

While due date for filing tax return is extended, no relief is granted by the CBDT for the levy of interest for filing of tax return beyond 30 September 2019. As a consequence, if the taxpayer files his tax return on or after 1 October 2019 but before 31 October 2019 i.e., within the extended due date, he will be liable to pay an interest @ 1% for one month on the balance amount of tax payable. However, no interest will be leviable if no tax is payable by the taxpayer on account of pre-paid taxes or otherwise.