The Diwali celebration fever is in full swing throughout the country but businesses must not forget that the deadline for e-filing of Income Tax Return is approaching rapidly. The Central Board for Direct Taxes had granted an extension to companies whose accounts were yet to be audited and the deadline to file their Income Tax Return was extended to October 31, 2019.
Who is eligible for a tax audit?
As per the Income Tax Act 1961, Income Tax Return filing should be carried out by entities who are assessed under section 44AB and 44ADA of the Income Tax Act 1961, such as companies, partnership firms and proprietorship. Furthermore, businesses whose total sales, turnover or gross receipts exceed Rs 1 crore in the financial year are eligible for a tax audit.
Penalties on late filing?
Though the extension from the Central Board of Direct Taxes has provided a huge sigh of relief to businesses, it is advisable to not wait till the last minute to file their Income Tax Return. Any delay in ITR filing will now cost companies an additional late filing fee. As per section 271F of the Income Tax Act 1961, the penalties for late filing between November 1, 2019 – December 31, 2019 are as follows:
- Rs 5000 if the Gross Total Income is above Rs 5 lakh
- Rs 1000 if the Gross Total Income is between Rs 2.5- 5 lakh
- No penalty if the Gross Total Income is below Rs 2.5 lakh
It should also be noted that companies will not be able to file their Income Tax Return for the financial year 2018-19 after March 31, 2020.
Where to file your ITR?
All India ITR provides e-filing services to individuals and businesses and has made the whole ITR filing process simpler and less time consuming. Check out our CA Assisted Plans and you can request a callback from our tax experts who can prepare and e-file your Income Tax Return.
You can start e-filing your Income Tax Return now!