CBDT extends due date for filing Income Tax Return for AY 2022-23 to Nov 7

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Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.

The Central Board of Direct Taxes (CBDT) said in a notification that the ITR filing due date has been extended as it had last month extended the deadline for filing audit reports.

Providing a relaxation to the tax payer, the Central Board of Direct Taxes has extended the deadline for filing income tax return for the assessment year of 2022-23 till November 7, 2022. The decision was taken on Wednesday. It is to be noted that the last date to file ITR for FY23 was October 31.

CBDT extends the due date for furnishing Income Tax Return for AY 2022-23 to 7th November, 2022 for certain categories of assessees in consequence of extension of due dates for filing various reports of audit. Circular No. 20/2022 dated 26.10.2022 issued.

CBDT’s extension of due date for filing of Income Tax Return (ITR) for Assessment Year 2022-23 from 31/10/2022 to 07/11/2022 applies to the following assesses:

a) Companies
b) Persons subject to Tax Audit or Audit under any other law
c) Partner of Firm which is subject to Tax Audit
d) Other specified persons whose due date of filing the return of income is 31/10/2022.

Source: CBDT Circular

Small Companies thresholds further increased by MCA (Paid-up Capital/ Turnover)

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MCA has further revised/ increased the ‘paid-up capital’ and ‘turnover’ thresholds applicable in the case of ‘small companies’ under the Companies Act, 2013, to reduce compliance burden for more number of companies to be treated as ‘small companies’, as part of ‘ease of doing business’ initiative.

Earlier, the definition of “small companies” under the Companies Act, 2013 was revised by increasing these thresholds, i.e. paid up capital threshold was increased from not exceeding Rs 50 lakh to Rs 2 crore and turnover threshold was increased from not exceeding Rs 2 crore to Rs 20 crore.

These thresholds, now have been further revised/ increased to amend the definition of small companies, so that more number of companies can be treated as ‘small companies’, eventually to reduce their compliance burden. Now the paid up capital threshold has been increased from not exceeding Rs 2 crore to Rs 4 core and turnover threshold has been increased from not exceeding Rs 20 crore to Rs 40 crore, which effectively means that number of small companies will increase substantially.

In the recent past, MCA has taken several initiatives/ measures in the direction of ease of doing business for corporates, like decriminalization of various provisions of the Companies Act, 2013/ LLP Act, 2008, extending fast track mergers to start ups, incentivizing incorporation of One Person Companies (OPCs) etc.

Lakhs of small companies significantly contribute to the growth of Indian economy and generation of employment. Therefore, Government is making continuous efforts by such initiatives/ measures which create a more conducive business environment for law-abiding small companies, by reducing their compliance burden so that they can focus more on their core business.

It may be noted that small companies are eligible for certain benefits/ relaxations, in the form of reduced compliance burden, some of which are listed hereunder:

i) No need to prepare cash flow statement by small companies, forming part of financial statement,

ii) Advantage of preparing and filing an Abridged Annual Return,

iii) Mandatory rotation of auditor not required,

iv) An Auditor of a small company is not required to report on the adequacy of the internal financial controls and its operating effectiveness in the auditor’s report,

v) Holding of only two board meetings in a year,

vi) Annual Return of the company can be signed by the company secretary, or where there is no company secretary, by a director of the company,

vii) Lesser penalties for small companies, etc.

In view of the fact that ‘paid up capital’ and turnover’ thresholds applicable for ‘small companies’ under the Companies Act, 2013 have been further revised/ increased, this will allow more number of companies to enjoy relaxation from certain compliance burdens.

The definition of ‘small companies’, the MCA has issued Notification dt. 15/09/2022 on Companies (Specification of definition details) Amendment Rules, 2022..

CBDT reduces time limit for e-verification of ITR from 120 days to 30 days.

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Till now the time period to e-verify the ITR or send the ITR-V through post was 120 days from the date of the uploading of the ITR.

For the Financial Year ended March 31, 2022 (Asst Year 2022-23), even as 5.82 crore people filed their ITRs (Income Tax Returns), only around 4.02 crore of them were verified.

Thus, over 1.8 crore people did not verify their ITR filings as till July 31.

The Income Tax department had processed 3.01 crore verified ITRs till July 31, as per the website.

Status of Returns filed & e-verified

Verifying income tax returns are as important as filing them, since unverified ITRs are treated as invalid by the income tax department. Once the taxpayer verifies the ITR, the income tax department processes it, sends the income tax intimation and issues refunds, if applicable.

You need to verify your Income Tax Returns to complete the return filing process. Without verification within the stipulated time, an ITR is treated as invalid. e-Verification is the most convenient and instant way to verify your ITR,” said the income tax department on the e-filing website.

e-Verification of ITR: Last Date

Now, taxpayers have to electronically verify or e-verify their income tax returns (ITR) within 30 days of filing the return of income. Earlier the time limit was 120 days. In a notification, the Central Board of Direct Taxes (CBDT) said it has reduced the time limit for verification of income tax to 30 days from the date of transmitting or uploading the data of return of income electronically. This new rule will into effect from August 1, 2022, the CBDT said.

“It has been decided that in respect of any electronic transmission of return data on or after the date this Notification comes into effect, the time-limit for e-verification or submission of ITR-V shall now be 30 days from the date of transmitting/ uploading the data of return of income electronically,” the notification said.

If you still have not e-verified your ITR, you need to do so within a month of filing the returns. This means that if you filed the income tax return on July 31, you need to e-verify ITR by August 31 to get it processed. Otherwise it will be rendered invalid.

There are several ways to e-verify your ITR. These include Aadhaar-based OTP, bank and demat account, net banking, ATM or digital signature certificate.

How to e-Verify Your ITR Through Aadhaar-Based OTP.

Aadhaar-based OTP is one of the easiest methods to e-verify ITR. In this scenario, your mobile number must be linked to Aadhaar. On the e-verify page of the income tax portal, select the option that prompts you to use Aadhaar-based OTP to e-verify ITR.

A pop up will appear asking you to validate Aadhaar information, check that box. Now, click on ‘Generate Aadhaar OTP’. You will receive a six-digit OTP on your registered mobile number. Enter the OTP and submit. This OTP is valid for 15 minutes.

Source:

CBDT Circular on e-Verification

CBDT notifies New Income Tax Return Forms 1 to 5 for Assessment Year 2022-23

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The Finance Ministry has recently notified the new Income Tax Return (ITR) forms for the assessment year (AY) 2022-23 to file a return of income earned in the financial year (FY) 2021-22.

So far, the Central Board of Direct Taxes (CBDT) notified the new ITR forms, from ITR Form 1 to ITR Form 7, which are available on the Income Tax website.

This year, almost all the ITR forms have been kept unchanged from the last year, except few small changes.

Remember, an assessment year (AY) is the year that immediately follows the financial year (FY) in which the income was earned.

Income of FY 2021-22 will be accessed in AY 2022-23.

All ITR forms will seek additional information with regard to overseas retirement benefits and interest accrual on provident fund deposits exceeding Rs 2.5 lakh a year.

Check out which ITR form is applicable to you and changes to consider.

ITR 1 form

It is for salaried individuals having a total income of up to Rs 50 lakh for the financial year 2021-22.

You can also file a return in ITR 1 if you earn income from other sources such as interest from bank deposits, house property and agriculture income up to Rs 5,000.

This time, the assessee will have to provide information about income from overseas retirement funds while calculating their net salary.

ITR 2 Form

If your salary income exceeds Rs 50 lakh, then use ITR-2.

Also, if you have income in the form of capital gains from more than one house property, or if you earn a foreign income, or own a foreign asset.

ITR 3 form

This form is for businessmen and professionals who do not earn a salaried income. If you are a partner of a firm, you should use ITR-3.

ITR 4 Form

ITR-4 can be used by both resident individuals, firms and HUFs (Hindu Undivided Family) who had income either from profession or business.

ITR  5 Form and ITR 6 Form

These two forms are for corporates and trusts. ITR-5 is for partnership firms, business trusts, investment funds and so on.

Whereas ITR-6 is for companies registered other than Section 11, respectively.

ITR 7 form

This form is for persons including companies that are required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only.

Source: CBDT notification of Income-tax Returns for AY 22-23

ICAI permits CA in Practice, Firms of Chartered Accountants to register on GeM Portal for rendering Professional Services

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Chartered Accountants in Practice/Firms of Chartered Accountants to register themselves on GeM (Government e- marketplace) Portal

The Institute of Chartered Accountants of India ( ICAI ) has permitted the Chartered Accountants ( CA ) in Practice, Firms of Chartered Accountants are permitted to register on GeM Portal for rendering professional services.

The ICAI has said that, The Institute has been receiving queries as to whether Chartered Accountants in Practice/Firms of Chartered Accountants can register themselves on GeM Portal as registration on the Portal is a pre-requirement for providing professional services to the Government departments/ organisations.

The ICAI has clarified that, the Chartered Accountants in Practice / Firms of Chartered Accountants are permitted to register on GeM Portal for rendering professional services.

The information being published on the portal should be in compliance with the provisions of Code of Ethics.

The ICAI also said that, the Guidelines on Tenders dt. 7th April, 2016 issued by the Institute will be applicable to tender floated through GeM Portal also without any change.

The Guidelines are appearing as Appendix -J of Volume-II of Code of Ethics, and may be accessed on the website of the Institute at the link below:

Clarification with regard to Chartered Accountants in Practice/Firms of Chartered Accountants registering themselves on GeM (Government e- marketplace) Portal

MCA further extends due date of filing Annual Return and Financial Statement till March 15.

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The Ministry of Corporate Affairs (MCA) has again extended the due date of filing Annual Return and Financial Statement.

The MCA has again relaxed the levy of additional fees for filing of e-forms AOC-4, AOC-4 (CFS), AOC-4, AOC-4 XBRL AOC-4 Non-XBRL till 15.03.2022 and for filing of  e-forms MGT-7/MGT-7A for the financial year ended on 31.03.2021 till 31.03.2022.

MGT-7 is an electronic form provided by the Ministry of Corporate affairs to all the corporates in order to fill their annual return details. This e-form is maintained by the Registrar of Companies via electronic mode and on the basis of the statement of correctness given by the company.

Form AOC 4 is used to file the financial statements for each financial year with the Registrar of Companies (ROC). In the case of consolidated financial statements, the company shall file the AOC 4.

Keeping in view the extension of timelines for audit/ tax audit and finalization of accounts under the Income Tax Act, 1961, this extension was very much required to synchronize with the inter-connected chain of events.

Accordingly, the ROC annual return due date for FY 2020-21 stands extended for companies, without payment of additional fee, as under:

i) AOC-4, AOC-4 CFS, AOC-4 XBRL, AOC-4 Non-XBRL: upto 15/03/2022

ii) MGT-7 and MGT-7A: upto 31/03/2022

MCA Extends Due Dates for e-forms AOC-4/ 4(CFS)/ 4(XBRL), 4(Non-XBRL), MGT-7/ 7A

CBDT extends the timeline for filing Income Tax Returns and various Tax Audit Reports for Asst Year 2021-22

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CBDT has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22.
The Central Board of Direct Taxes, via Circular No. 01/2022 issued on 11th January 2021, has extended the timeline for filing of Income Tax Returns and various Reports of Audit for the Assessment Year 2021-22.
 
This has been done following the adverse impact of the 3rd wave of the COVID-19 pandemic and difficulties faced by taxpayers and professionals.
 

Announcement from CBDT earlier today on extension of timelines for filing of tax returns and certain audit reports to 15 March and 15 February is a major relief considering the challenges faced by both the taxpayers and their advisors due to newer variant of virus and the glitches in the online portal. Timing of the announcement in particular avoids anxiety for all concerned.

Here is the list of  various ITR deadline for AY 2021-22 that have been extended

  1. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 30thSeptember 2021, in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, as extended to 31st October 2021 and 15th January 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th February, 2022;
  2. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 31stOctober, 2021, in the case of assessees referred in clause (aa) of Explanation 2 to sub-section (1) of section 139 of the Act, is hereby extended to 15th February, 2022;
  3. The due date of furnishing of Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which was 31stOctober 2021, as extended to 30th November 2021 and 31st January 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th February, 2022;
  4. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31stOctober 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November 2021 and 15th February 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th March, 2022;
  5. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 30thNovember 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December 2021 and 28th February 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th March, 2022.

Clarification 1: It is clarified that this extension shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees.

Clarification 2: For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deemed to be the advance tax.

Source: CBDT Circular