Extend last date of filing of Income tax returns in Tax Audit case

Representation regarding extension of last date of filing of Income tax returns in Audit case and Audit Reports from 30-09-2019 to 30-11-2019 by District taxation Bar Association, Karnal to Hon Smt Nirmala Sitharaman, Hon. Union Minister of Finance, Ministry of Finance, Government of India’.

DISTRICT TAXTATION BAR ASSOCIATION (REGD.)

REGD. OFF : AAYKAR BHAWAN, SECTOR -12, KARNAL-132001

Dated:- 24/09/2019

To.
Hon Smt Nirmala Sitharaman
Hon. Union Minister of Finance.
Ministry of Finance, Government of India’
North Block, New Delhi – 110 001
Email: fmo@nic.in

Subject :- Representation regarding extension of last date of filing of Income tax returns in Audit case and Audit Reports from 30-09-2019 to 30-11-2019.

Respect Madam,

Most respectfully with reference to the subject above. It is submitted that various professional associations have already represented before your goodself to extend the due dates for the same The present government has always listened and reacted to the issues and problems of the trade & professionals immediately Considering the numerous problems and issues faced by the trade and professionals. it is the need of the hour to postpone the due date for filing of Income tax Returns in Audit cases and Audit Report for the fiscal year ended March 2019 from 30-09-2019 to 30-11-2019

Needless to mention that inspite of various submissions made by various associations till date no extension is granted. However before submitting the grounds ” District Taxation Bar Association, Karnal (Haryana)” would like to give its introduction with your goodself which is as under:-

District taxation Bar Association, Karnal is one the oldest organization which comprises of more than 150 tax professionals-both in Direct & Indirect taxation. Members of this association are also members of different associations at state level as well as at national level. Morever some members of this association are also holding responsible post in Haryana Tax Association & National level associations like ( All India federation of Income tax Practioners. National Action Committee for GST Practitioners. Association of Tax Lawers ( India) and hold Tax Seminars especially in Northern India The Prime Objective of this association is not only to work for the cause of professionals but to educate the public at large

In addition to above we hereby contest for the extension of the above said date due to following grounds/hardships –

1. Due to such delays and updates. the extension was granted by a month for income tax returns due on July 31, 2019. The said extension also has caused a spill over of the return filing due on July 31. 2019 to the month of August 2019 This leaves only a month for carrying out Tax Audit and completing the filing of Audit report and Income Tax Return due on September 30. 2019, where in true essence the law provided for 2 months which is now curtailed Due to the voluminous data required to be filed by assesses covered under tax audit as well as by companies. it is very difficult to complete the filings in half the time period against 2 months as prescribed by the law

2. Many new/additional details are required to be given in the ITRs of assessment year 2019-20 Particularly in ITR 6. many new details need to be gathered and complied which are not readily available with the assessee. We shall be making a separate representation for the details to be submitted in ITR 6

3. The finalisation of statutory and tax audit also includes compilation and reconciliation of GST data Many errors had been made in FY 2017-18 by the dealers and the same were/are to be rectified in either FY 2017-18 or FY 2018-19 which is now under audit Reconciliation of the turnover, GST paid. ITC availed/utilised etc. with GST returns is long and time-consuming process.

4. You are well aware that many parts of our country have faced very heavy rainfall leading to floods and damage of life and property. A large number of working man days have been lost due to the same. The heavy monsoons have delayed the completion of financial statements and audits of assessees substantially and hence the time available will indeed be very short

5. Due to assembly elections in haryana and some other states in October 2019. some of professionals as well as businessmen shall be busy in supporting in view of association with the political parties in one or another way Hence time would also be consumed during the election period

6. Many compliances have to be made this year company law also This also includes the updating of Directors KYC for all the directors of all companies. filing of various BEN Forms, INC-22 & MSME Forms. This exercise is also a very time consuming, demanding huge penalities in case of delay in compliance It is also eating out the time available with various professionals.

7. Since heavy penalties have been introduced in the law, It is essential that the necessary data for the computation of income is complied with much greater care and thoroughly audited before the returns of income are uploaded. The late release of required utilities is also creating serious problems of uploading the tax returns.

8. The very fact that the status of return filings is low should indicate that the trade and industry is facing genuine problems and hardships in the matter Most of the trade and consultants have been burning the midnight oil and spending weekends in the office to ensure compliance Hence adequate time needs to be given for compiling the details to ensure qualitative filing of information Submission of improper reports. wrong reconciliations, wrong data etc will render the entire exercise of submission of audit report & Income Tax Returns futile. It will not give the desired results and will also not be helpful to the authorities. There will be unnecessary litigation as due to paucity of time the reports may be qualified and submission of wrong data will lead to un-required tax liabilities It may also lead to penal consequences on the trade and consultants for submission of incorrect data

9. Besides the above there are various factors which have the taxpayers and professionals on toes for ensuring the said compliance Many taxpayers are also in the phase of upgrading their systems to bring it in line with the new return forms to be introduced from October 2019

In view of considering the above hardships being faced by millions of taxpayers. we most respectfully urge to your Honour to extend the due date for filing the Income Tax Returns by two months i 3. from 30-09-2019 to 30-11-2019 We shall be most grateful to your honour for agreeing to our request and issuing necessary notification extending the time to file returns and tax audit reports by two months We wish to re-assure your honour of the District Taxation Bar Association Karnal’s full co-operation in the governments’ efforts of promoting compliance with our country’s tax laws

Thanking You.
Yours Faithfully.

SACHIN HANS, ADVOCATE
VICE PRESIDENT. DTBA

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