The Indian Income Tax Department recently announced a 15-day extension for corporate tax filing. It is to file their income tax returns, moving the deadline from October 31 to November 15 for the Assessment Year 2024-25. This measure is expected to ease filing pressures on corporations while aligning with the festive season. It will allow taxpayers additional time for accurate filings and proper compliance.
Why is the Extension given?
The Central Board of Direct Taxes (CBDT) issued a circular confirming the new deadline. Though there was no specific reason cited for this. Some experts suggest this is due to the upcoming festive season. Rajat Mohan from AMRG & Associates noted that the extension allows taxpayers to focus on filing with less stress during holidays.
What Remains Unchanged?
This extension applies only to income tax returns for corporate. Deadlines for other important documents, like the Tax Audit Report, Form 3CEB, and certain deduction forms, remain October 31. Nangia Andersen LLP’s Sandeep Jhunjhunwala emphasized that these other filings still need timely submission.
Balancing Compliance and Convenience
This is the second adjustment by the CBDT for the current assessment year. Earlier in September, it had extended the deadline for filing tax audit reports by seven days. By providing extensions, the CBDT aims to encourage a smoother compliance process for businesses, especially during times of peak activity. Jhunjhunwala highlighted that these targeted extensions are intended to support companies in maintaining compliance with minimal disruption to routine operations. It will help the companies to complete filings with less last-minute rush.
A Timely Step for Better Compliance
Overall, the extended deadline reflects the government’s ability to access the challenges businesses face in managing compliance alongside festive schedules. As a result, companies now have additional time to ensure they meet regulatory requirements accurately and on time. It is crucial for preventing last-minute errors and potential penalties.
