Will you get extension for tax audit report, income tax returns for audit cases and time limit for AGMs from Nirmala Sitharaman?

Income Tax Filing Due Date Tax Audit: In a major development, direct tax professionals have sought extension for tax audit report, income tax returns for audit cases and time limit for AGMs in the wake of the ongoing pandemic scenario. The Direct Taxes Professionals Association (DTPA) has urged Finance Minister Nirmala Sitharaman for extension of date of furnishing of tax audit report under section 44AB to February 28 and the due date of filing of income tax returns of assessment year 2020-21 in audit cases to March, 31, 2021, as per a PTI report.

Due to the corona pandemic normalcy in operations is yet to set in. Even many professionals as well as their staff have suffered infection from COVID-19. Therefore, there is need for extension of dates for furnishing tax audit reports and ITRs, DTPA president N K Goyal said in their recent submission to the government.

Out of 5.25 crore assessees some 3.75 crore, including individuals have already filed returns. The remaining are mostly firms and corporates where tax audit is required and there is a demand for extension, DTPA chairman (PR and representation committee) Narayan Jain said, as per a PTI report.

The individual ITR deadline is December 31, he said.

The professionals body also sought for extension of date for filing declaration under Vivad se Vishwas (VSV) scheme from December 31, 2020 to February 28, 2021.

The government had introduced the VSV scheme to settle tax dispute cases of taxpayers in the pandemic period.

On holding AGMs, the former president of Institute of Company Secretaries of India Mamta Binani said, "Since many corporates have not yet been able to complete their accounts and audit due to corona pandemic the last date for holding AGM needs to be extended to March 31 and the gap between two AGMs may be allowed upto 21 months".