CBDT Extends Deadline for Tax Audit Report Submission to October7 

The Central Board of Direct Taxes (CBDT) has announced an extension of the deadline for filing tax audit reports to October 7, 2023. This decision, made in a notification issued on Monday, comes in response to the difficulties faced by taxpayers in meeting the original deadline.

The extension aims to provide relief to businesses and individuals navigating the complexities of tax compliance amid ongoing economic challenges. Taxpayers were reportedly struggling with various factors, including a lack of clarity in regulations and operational disruptions caused by the ongoing economic environment.

Under current regulations, failure to submit the tax audit report by the deadline can result in a penalty of ₹1.5 lakh or 0.5% of total sales, whichever is lower. The CBDT has emphasized the importance of timely compliance and has encouraged taxpayers to utilize the additional time to ensure accurate submissions.

Tax experts and stakeholders have welcomed this extension, noting that it allows for more thorough preparation and potentially reduces the risk of penalties. It also reflects the government’s responsiveness to the challenges faced by the business community.

As businesses prepare for the upcoming deadline, they are urged to ensure that all documentation and audit requirements are in order. The CBDT has reiterated its commitment to facilitating a smoother tax filing process and enhancing taxpayer services.

Taxpayers are encouraged to stay updated on any further notifications or guidelines from the CBDT as the new deadline approaches.