Extend Due date for filing Tax Audit Report & ITR

Lucknow CA Tax Practioners’ Association has made a Requested to FM  that the due date for filing of ITRs for all the taxpayers for AY 2020-21 be extended to 31st March, 2021 and the due date for filing the tax audit report also be extended to 28^th February, 2021 and further requested to extend the date of filing of ITRs of AY 2019-20 to 31st January 2021. Consequently, the timeline for filing all the reports and certificates under the Act which fall due along with or in connection with the ITR filing due dates may also be to 31⁴ March, 2021. Full text of the Representation is as follows:-

LUCKNOW CA TAX PRACTITIONERS
ASSOCIATION

Room No 13, Aayakar Bhawan, Ashok Marg, Lucknow-226001
Email: [email protected]

Smt. Nirmala Sitharaman,
Hon’ble Minister of Finance,
Government of India
New Delhi — 110001

Date:16/12/2020

Madam.

Subject : Request for extension of Due date for filing Income Tax Return of AY 2019-20 & AY 2020-21 and for filing of Audit Report under various provisions of the Income Tax Act, 1961 for Assessment Year 2020-21

The Lucknow CA Tax Practitioners’ Association is a not for Profit and a Voluntary body of Chartered Accountants practicing in the field of Taxation and allied laws. It is always the endeavor of Lucknow CA Tax Practitioners’ Association to be the forum from where the grievances of our esteemed members and taxpayers can be put forth before the Government on matters concerning betterment of Taxation Laws.

1. At the outset, we thank your goodself for appreciating the difficulties faced by the taxpayers and professionals in finalizing the accounts for the financial year 2019-20 and thereby extending the due date for filing the Income Tax Return (ITR) for Assessment Year (AY) 2020-21 to 30.11.2020 as well as for filing the Audit Reports under various provisions of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) to 31.12.2020 and Income Tax Returns in non audit cases to 31/12/2020 and for Audit cases to 31/01/2021. It was very thoughtful of your goodself to extend the due date of filing of belated and revised return of income for AY 2019-20 to 30.11.2020 vide circular dated 30.09.2020.

2. Whereas after the staggered nation-wide unlock post outbreak of Covid-19 pandemic, though the work has started limping back with the opening of offices and factories, the situation is far from normal. It would not be out of place to mention that with limited manpower availability priority is being given to running of businesses rather than finalization of financial statements for the financial year 2019-20. In many cases where any staff or family member of the tax payer becomes COVID positive, professionals do not want to meet or attend them till the report comes negative.

3. Further, majority of the Chartered Accountant (CA) firms who carry out audits are small and medium sized firms having limited resources to work remotely and work from home. Further, audit is an activity that more often than not happens on the ground and in the premise of the audit clients. Continuing fear of spread of virus has resulted in the audit process getting impacted In many cases Chartered Accountants, Tax Professionals and there staff have been infected and have not been able to work for minimum of 14 days.

4. The fact that even the Income tax department is facing challenges amidst the pandemic crisis which has led to long delay in issuance of the income tax return utility proves that the situation is beyond everyone’s control and needs a compassionate approach. Further, the utility of Income Tax returns were made available only in June ’20 instead of April ’20. The utilities for Form 3CA­3CD and Form 3CB-CD have been released very late this year. . It may be appreciated that like the Income tax department could not come out with the return and audit report utilities and schemas in time, the taxpayers also need some extra time cushion for filing the returns.

5. The 700+ pages instructions for filing the return of income were released on 23/10/2020. Again the revised instructions were released on 25/11/2020 means a month before the due date of filing the Income Tax Returns. The tax payers and professionals have not received the enough time to even take a note of the most important points.

6. Considering all the above difficulties, it is humbly requested that the due date for filing of ITRs for all the taxpayers for AY 2020-21 be extended to 31st March, 2021 and the due date for filing the tax audit report also be extended to 28^th February, 2021 and further requested to extend the date of filing of ITRs of AY 2019-20 to 31st January 2021. Consequently, the timeline for filing all the reports and certificates under the Act which fall due along with or in connection with the ITR filing due dates may also be to 31⁴ March, 2021.

Respectfully Submitted,

Yours Sincerely.
For Lucknow CA Tax Practioners’ Association

CA Amit Singhania
President

CA Vivek Mehrotra
Secretary

Cc to: Shri Anurag Thakur, Hon’ble Minister of State (Finance), New Delhi -110001

Shri P C Mody, Hon’ble Chairman, Central Board of Direct Taxes, New-Delhi — 110001

Download Full Text of Representation in PDF Format

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