CA Rekha Dhamankar
1. DUE DATES OF FILING OF ITR AND TAX AUDIT REPORTS We all know that the due date of filing of the returns and audit reports are as follows-
31st July – filing of return of income for the people other than whom tax audit under income tax act applies and companies
30th September – filing of tax audit report, Income tax return of the person to whom tax audit under income tax is applicable and companies registered in India.
2. DELAY IN NOTIFYING THE FORMS
The date of filing of ITR, which are due for filing on or before 31st July 2015, was extended by CBDT to 31st August by the Notification dated 10 June 2015. There may be some presumptions made about the notification of the forms required to file ITR at the time of notifying the extension of date. However we want to bring your attention on the point that the forms in fact got notified on 22nd June 2015 and 29th July 2015. The CBDT should have reconsidered the declared extension on the basis of date of notification of the forms. However, no such reconsideration has been made by the CBDT.
We strongly feel that the CBDT should not drag and compel the professionals and professional bodies to make representations before it by such delays in notifying the forms, without which the returns cannot be filed. Ideally the forms should have been notified in the month of April or May to give sufficient time to the people to file their ITRs. In the present scenario the time given to complete all the ITRs is only a month, which is not sufficient. Delay in notification of the Forms, which does not have much changes as compared to last year is not a welcome stage on the background of our growing reputation as the leading “Information Technology Nation” in the world. It is hard to imagine for everyone that it takes so many days to notify the forms. This is clear indication of the “bottlenecks” in the development of the system, which has to be removed with strong supported system and planning.
3. SECOND EXTENSION
Further the date was extended to 7th September vide notification dated 2nd September 2015. This also does not have proper justification that why the date of 31st August was extended on 2nd September when people have taken lot of efforts and wasted their time sitting on the computer system idle since the website of the income tax department was not working on 31st August 2015
4. NOT SUFFICIENT TIME TO CONDUCT THE TAX AUDITS
Due to the late notification of the forms of ITR and extension of the date of 31st July 2015 to 31st August 2015, the time to conduct the tax audits, getting information for the same from the clients on the basis of changes in the forms of tax audit last year and uploading of the same will not get enough time. Its always argued by the people that the tax audit should have been completed before July and we should not wait till last month. However we all know and agree the other pressures, deadlines and compliances in the profession that ideally and practically it’s not possible. Also it’s very difficult to get the required information from the client in the month of May and June.
We would like to bring to your notice that the audit work has never been and cannot be considered as a “Mechanical work” and it requires expert knowledge, study and proper guidance from the ICAI (the apex body of auditors in India).
On the background of the introduction of new formats for tax audit report introduced last yar, the tax audit report require the auditor to collect hell lot of information and required detailed scrutiny of transactions. It is practically difficult for the auditors to compile the information, since the time is very short. It may affect the quality of the audits. The CBDT is well aware about the fact that the tax audit forms introduced last year are very complicated. Further, the tax audit reports are to be filed and uploaded online which in itself is a massive task.
Ideally the ITRs due on 31st July should get enough time of 2 months after receipt of Forms 16 and 1 6A and tax audit and company audit should get 3 complete months after finishing the work of filing of returns, if we don’t want to compromise the quality of the audit and show true and correct picture in the audit reports.
5. VIEWS OF ICAI NOT TAKEN INTO CONSIDERATION
The Institute of chartered Accountants of India (ICAI), established by an Act in Parliament, is the regulatory body for matters concerning the Audits in our Country. The views of such an esteemed organization always should have been asked for and considered before introducing and implementing such major changes into the system. It is apparent from the facts available that neither the views of ICAI were called for nor the representation moved by ICAI are considered.
6. REPRESENTATION OF THE CHARTERED ACCOUNTANTS AT LARGE ARE NOT CONSIDERED
Lot of chartered accountants from Pune, kolhapur, aurangabad, Nagpur, nashik, sangli, miraj, mumbai has filed representations to CBDT, finance minister to extend the date since the forms are notified on 29th July. The group United cas also filed representations. Also direct taxes committee of institute of chartered accountants, Delhi has tried hard and filed the same. But it hasn’t been taken convenience of by the CBDT.
If we accept and have respect for the Chartered Accountancy profession, and we agree they really contribute a lot in the financial reporting of the assessees and who indirectly helps the country in do its financial planning, they should not be taken for granted and kept on the whims and fancies of the Government.
7. APPLICABILITY OF NEW COMPANIES ACT, 2013
The new companies Act was made applicable from 1st April 2014, which is applicable for the audit of FY 2014-15. The professionals and CBDT can very well understand the complexities involved in it and the time it is going to take. It will take lot of time to conduct the audit of the companies since the new Companies Act demands huge information and keeps lot of expectations from CAs to comply with the requirements mentioned therein.
8. REQUIREMENT OF STRONG AND WELL BUILT SCHEMEA
The schema for the revised formats should be prepared with proper and due care. It has been witnessed in the past that every time when such changes are introduced that the auditors and assesses had to face new changes in the schema even on weekly basis. Everyone would agree that such type of changes are not welcome and is enough to damage the image of the prestigious institution like CBDT.
9. LOT OF FESTIVALS
Last but not the least, there are lot of festivals coming in in Maharashtra like Ganesh Festival from 17th to 27th September lot of other festivals in other parts of Countries in August and September 2015. Early communication of the extension may save them from the stress of time management.
WE STRONGLY PROTEST THE NON-EXTENSION OF THE DATES AND HAVE FOLLOWING SUGGESTIONS –
1. ICAI’S AND OTHER CA’S REPRESENTATION SHOULD BE CONSIDERED AND GIVEN WEIGHTAGE
The Institute of chartered Accountants of India (ICAI) , which is established by an Act in Parliament , is the regulatory body for matters concerning the Audits in our Country and it appears from the representation moved by The Direct Taxes Committee of ICAI to the Hon. CBDT should be taken into consideration. Since the matter is connected with Audits hence the views of the ICAI should be given proper attention and respected. Further the representations of the members of the ICAI who actually does the work and expected to comply the legal requirements should be given weightage The representation given by the ICAI should be accepted and the dates for filing of return should be extended as represented by ICAI and its members at large.
2. EXTEND THE DATE BY TWO MONTHS IN CASE OF TAX AUDIT AND AUDITS OF COMPANIES
We demand that the date of preparation of Tax audit Report, filing of return of the companies and assesses, which are due on or before 30th September 2015 should be extended to 30th November 2015.
you would appreciate that the law itself provides a gap of 2 months between the two due dates of 31st July and 30th September meaning that the lawmakers of this country are aware of the needs of the tax payers, tax auditors and the tax advisors. Accordingly CBDT should respect the intent of the law and provide a period of 2 months for the filing of tax audit and corporate tax returns after 31st August. Further if we consider the complexities involved in New companies Act, one more month should be granted.
If we consider the number of audit each Chartered Accountant can do (which is 60 per CA), it would be non-humanitarian to expect from them to complete all the audits before 30th September 2014 after wasting 2 months of the auditors in notifying the forms for which the due date is 31st July 2015.
3. IMMEDIATE COMMUNICATION OF THE EXTENSION
The decision of the extension of the dates with all clarifications must be issued and communicated / published at the earliest. If this suggestion is accepted, we expect that immediate communication in this regard is issued without waiting for the due date to come closure so that sufficient time is available for the auditors and efforts can be suitably channelized to complete the work in the given time frame. This may lead to proper time planning and reduction of undue stress of completion of the work.
We strongly protest the press release and communication coming from Finance Ministry for non- extension of the date. We protest the reasons given for non extension of time that the audit should be completed before 30th September 2015 since there are no major changes in the form when the CBDT took nearly 4 months time just to notify the forms when there are no major changes in the same.
Though every one is making a good case for extension of due date but to me extension does not help Professionals and results in extended tension (ex-tension). Just see that extension of due date would render most of your DSCs invalid and with the new tough procedure of obtaining DSC, you may find yourself in a soup at the last minute of extended due date. We are aware, in case of extension of due date, most of the ITR and TAR are likely to be filed only in the last couple of days of extended due date. Instead of crying for extension, one should focus on finishing within due date.
Adv C P Chugh
99-711-24526
Nice write up Ca.Rekhaji. Its certainly an unfortunate and adamant decision of FM/CBDT. It seems they are no where considering professional fraternity and indirectly disrespecting the CAs and tax professionals. While they have wasted whole four months to notify return forms, isnt it itself a sufficient cause to extend the date by themselves. A strong protest like Kam band andolan, protest at every IT office should should be initiated.
Non-Advocates are not licensed to practice Income-Tax law in the statue book of Income-Tax Act, but only authorized to issue Tax Audit Report. In this situation, I find that issue in the above article is not relevant to the author and Non-Advocates who made comments in this blog.
CBDT should reconsider about the extension of filing the tax audit report.
MR FM SIR AND CBDT WE ARE HUMAN BEING ONLY NOT MACHINE THAT YOU JUST SAY SOMETHING AND START MACHINE AND ALL THE WORK WILL BE DONE IN DUE TIME. SEE THE REPORTING ASPACT WHATEVER YOU WANT IN FORM OF REPORT IT TAKE LOTS OF TIME. IF YOU WANT THESE REPORTS TO BE FILED IN SEPT MONTH ONLY THEN PLEASE PROVIDE SCHEMA AND AUDIT UTILITY IN THE MONTH OF APRIL ONLY NOT IN JULY AND AUGUST. WE REQUEST YOU TO NOT TO SHIFT YOUR BURDON ON US. AS YOU GIVE THE SCHEMA AND FORM IN THE MONTH OF JULY AND AUGUST AND WANT THE TASK TO BE COMPLETED IN THE MONTH OF SEP ONLY. PLEASE CONSIDER US AS HUMAN BEING
SANDEEP KANOI SIR, YOU ARE ALSO ACTING AGAINST TRANSPARENCY BY NOT PUBLISHING MY COMMENTS
The professionals must unite now and protest in a concerted manner by staging a dharna outside north block, observe fiscal disobedience, ICAI and other bar Associations office bearers should sit on hunger strike, stop payment of advance tax. Complete abstention from work,assessment,tax, hearing etc. because government is hungry for money . They insult the professional bodies for the lenient ways of requesting. There should be a long march to Arun Jaitely’s house and submission of protest and memorandum. Is it not violation of fundamental rights by depriving the legitimate assessees to file tax return in April, may June and July, Why their babus are not able to release the form on 1st April itself with schema. The delay in release of form should be coupled with extension of days for equal days. –
Dear FM & Hon CBDT. Plz extend the due dt to file tax audit by 2 month ie. Upto 30 Nov. 2015….Jetley ji krupa kariyo….Plz plz plz..Support me…
Procrastination is human nature so our assessee auditees produce books of accounts only in the month of September and to overcome this problem,there should be an amendment in IT Act to file unaudited financial statements by the end of May so that we can audit properly or ONLY comment on his accounts.And we will have sufficient time also as already unaudited financial statements are submitted. Otherewise do away with tax audits as APPOINTING AUTHORITY and AUDIT FEE PAYING AUTHORITY are one and the same.He is not dependent on us but we are on him and we do not have so called INDEPENDENCE. Then deptt. can ask assessesses to get accounts audited u/s 142 and auditor will have sufficient time and independence. ICAI should think and act in the interest of members.
We request the CBDT to reconsider the decision of not extending the due date of filing the Audit dates looking to the various constraints the Chartered Accountants had to face due to the notification of Forms.
We strongly recommend the extension.
For announcing the ITR form which has no major changes the CBDT and Finance Ministry took such a long time just to announce the FORMS and the software required for the same to upload the ITR. Considering the delay taken in announcing the ITR forms the CBDT and Finance Ministry should extend the time till NOVEMBER. Due to such delay filing of the non audit cases was postponed and has taken away the time of the 44AB audit cases.THE BEST ANNOUNCEMENT THE CBDT/FINANCE MINISTRY CAN DO IS NO AUDIT REQUIRED FOR THE INDIVIDUAL AND PARTNERSHIP FIRMS, WHERE THE PUBLIC MONEY IS NOT INVOLVED.Scrap the 44AB audit for the individual and partnership cases as the experience of the department shows that the same has resulted any any extra revenue for the department but only THE ASSESSEE HAS LOST MONEY IN AUDIT.To increase the tax base such a drastic action by the CBDT and Finance Ministry is ORDER OF THE DAY.
We strongly protest the decision of Finance Minister and CBDT regarding non extention of Tax Audit Report Filling date.
1) CBDT says that ” there are no major changes in the ITR form.”
When there are no major changes, then why CBDT took such a long time to notify the form ?
2) CBDT is not taking into account the physical and mental health of the chartered accountants, advocates and the persons who are doing the work of maintaining books of accounts.
3) Completion of audit depends upon 1) response from tax payer 2) physical health of accountant and chartered accountant 3) smooth working of computer 4) uninterrupted internet and lastly 5) availability of website.
4) When CBDT is sure that there will be an uninterrupted internet and availability of website.
CBDT is request to extend the date of audit and return which will be be just and equitable.
WHY INSTITUTE AGREE WITH THIS TYPE OF DHAKA,CANNOT PROTEST OR BOYCOT THIS OR RAISE STRONG VOICE LIKE ASSOCIATION OF ADVOCATES
We strongly protest the decision of Finance Minister and CBDT regarding non extention of Tax Audit Report Filling date.
I agree that the time now available is too less. But I request all the learned professionals to understand that whatever info is required for audit will be from the books of accounts and supporting bills and vouchers of the assessees for the financial year that ends on the 3 1st day of March. No w we are in September. 5 months are more than enough to gather all the required info.
Dear Sir ,
Prime minster and Finance minister talk about the simplifation of the rules , now see what they are doing since last 2 years , making more and more complicated the compliances , since last so may years the chartered accountants ofice has become the back office of all the govt. revenue departement. They can not prepare forms in a year and expect from the fetrnity to comply with the same within 40 days . Will any one listen from the desk of Ruing party .
like jamu and kasmir in 2014 .. assam also suffering from flood in its all district from last two months…. is assam get any extension for submission of Audit report ?
Like previous year Jamukasmir……. Assam also suffering form flood in its all district ….. is assam not required more time … its difficult to adjust the thinking of CBDT is not providing any extension for Assam
Well said. First of all our FM is a lawyer by profession, he must have aware of the professional standing and quality of audit. These extensions should be done by the government itself. The law makers and implementing peoples are from our society only and not from somewhere else. Don`t you FM sir what will be the time required to conduct 60 audits?. Please understand you are for better administration and service to the society at large. There must be a reasonable time gap between declaration of forms and due date for filing of returns.
Government totally failed to take any type of decision
CBDT should reconsider about the extension of
filing the tax audit report. The last date
should be 31st October,2015.
IT IS REALLY SURPRIZING, THE PROFESSIONALS & ASSESSEE’S HAVE TO SUFFERS THE DELAYS, NEGLIGENCE, AND HALF DONE WORKS OF MINISTRY & ITS ORGANISATIONS SUCH AS CBDT.
EVEN IT IS MORE PAINFULL NOT CONSIDERING OF THEIR WRONG DOINGS.
We totally agree with the opinion and it is Govt always does like this they never care about their faults further dept never cares about the infrastructure provided by them more particularly power and net, in karnataka power is a precious then jewellery thing we do not know when to work and when not to work
under the given circumstances we strongly believe a PIL should be filed immediately questioning the Govt., action
Wake up ICAI wake Up
who told you not to do the audit until the CBDT release the ITR’s. whether CBDT told you not to do the audit until release of ITR’S
if we start the audit as and when completion of financial year, this problem doesn’t arise.
i totally disagree with writer.
who told you not to do the audit until unless CBDT release the ITR’s. filling/checking the data as required in ITR and checking the same doesn’t take more than 2 days even the company has thousand of crores turnover.
CBDT perhaps understands the language of courts only.Last year too,they made run every one concerned to the court and end of they(,CBDT)had to bite the dust and extend the date.
But,there is a clear babudom and no practicality.
I Agree with all views, even if CBDT extends date at month end it will of little help and this attitude of CBDT and FM is not in the interest of our nation.
There are 7 income tax forms and 10, if you consider 2A and 4s and two form 5s. But there are only 3 due dates july, september and november. There should be atleast 6 due dates,
for salaried only , June,
business july,
company without tax audit august,
tax audit firms september,
tax audit companies october
and transfer pricing november.
I think the ICAI and BCAS should start the signature campaign and protest the arbitrary and adamant views of CBDT in not realising the ground realities. The extension should be announced immediately, otherwise there is no use of extending on the last date
IT SHOWS IMMATURED DECISION BY CBDT. FOR EXAMPLE, IN AN 3 HOURS EXAMINATION, QUESTION PAPER IS GIVEN AT THE END OF 2ND HOUR, HOW CAN WE EXPECT TO ANSWER ALL THE QUESTIONS AT THE END OF 3RD HOUR, SINCE ON COMPLETION OF 3RD HOUR ANSWER SHEETS WILL HAVE TO BE SUBMITTED. CBDT NOT ABLE TO GIVE ITR FORMS ON 1ST OF APRIL 2015, HOW EXPECTS TO SUBMIT FILLED FORMS TO BE SUBMITTED WITHIN TIME LESS THAN THAT THEY TAKEN TO ISSUE THE SAME. THE CBDT & FM SHOULD CONSIDER & UNDERSTAND THAT IT IS NOT A RATION CARD APPLICATION TO BE FILLED & SUBMITTED WITHIN SHORT SPAN OF TIME. BUT REQUIRES EXPERT & TECHNICAL & ANALYTICAL AUDIT AND THEN FILL OUT FORM AND SUBMIT ONLINE. ALSO WE HAVE CO-OPERATE WITH ASSESSEE WHO COME FORWARD ONLY DURING AUGUST 1ST WEEK FOR TAX AUDIT OR COMPANY AUDITS.
The professionals must unite now and protest in a concerted manner by staging a dharna outside north block, observe fiscal disobedience, ICAI and other bar Associations office bearers should sit on hunger strike, stop payment of advance tax. Complete abstention from work,assessment,tax, hearing etc. because government is hungry for money . They insult the professional bodies for the lenient ways of requesting. There should be a long march to Arun Jaitely’s house and submission of protest and memorandum. Is it not violation of fundamental rights by depriving the legitimate assessees to file tax return in April, may June and July, Why their babus are not able to release the form on 1st April itself with schema. The delay in release of form should be coupled with extension of days for equal days.
Honorable Finance Minister need to be tax payer and tax professionals’ friendly, because they only have all the practical difficulties and in spite they keep accountability and revenue to the exchequer, hence it is not fair to reject the extension of due date for tax audit and company audit cases.
We should strongly protest against the attitude of CBDT
A very good practice by CBDT…. First of all take 5 month just for few column change in ITR’s.. Then make all people to request you to extend the due date..
Can any one file writ against CBDT asking them, from March to August what kind of deep analysis they are doing on ITR forms. For which they took 5 month to issue them.
Very well written pointing out issues that we are bound to face while conducting audits in such a short span of time. Totally agree with the writer.
Dear Readers and professional colleagues
I am fully agreed with all above views. CBDT take CA’s for a ride as we have no unity and enough lobbying with govt. sectors. Had it been a case of other professionals Govt would have extended the date without even asking like it did for salaried and small businesses. Why the date is always extended after expiry of due date or on the last day??
Join hands and make a strong representation to CBDT.
I too endorse the views expressed by the CA Rekha Dhamankar. I would also like to add that in the entire state of Karnataka and particularly in Bangalore, where most of the large assesses of Karnataka are located, there is a regular power-shutdown of 4 hours each day. This has made the made the audit even more difficult. I am sure same would be the case in other parts of the country as well. Considering that the reasons for the request for extension of filing the tax audit reports and the corresponding tax returns are beyond the control of the CA professionals the Central Government must reconsider our request and extend it up to 30/11/2015 and the announcement must be made ASAP.
It is very bad.
CBDT took 4 months to just notify the Forms, and extended the due dates for Non-audit cases, which resulted postponement of audit work to Sep.. It is very unfortunate, and adamant views of CBDT. From this year getting Digital Signature itself take 2-5 days. How can we conduct the audit is short time??
Agree with the writer.. CBDT itself says that changes made to ITR forms are not extensive as compared to the earlier years then why they delayed to notify the Forms by 4 months!! If notifying forms on 7th August gives enough time to file, then why the due date granted as per law in every year is 6 months after the close of the financial year!!! By notifying ITR 4 and ITR 5 on 7th August, CBDT left the ball to the coutr of the assessees to file the return within 23 days in the case of non-audit cases after they were lagging from April to August!!! These may also be termed as tax terrorism!!
Yes I agree with the author’s view
The dept. had a full year to finalize the returns. They could have very well notify the returns before the end of the financial year itself and open the website for e-filing by April. Without doing that, the dept now says the forms were notified well in advance and hence enough time is given for filing of return. As per the statistics on the dept. site, as of 31/08/15 only 45K returns were filed whereas the returns filed for previous full year(FY 14-15 till 31/3/15) was around 7.5 lakhs. So is the dept expecting to complete the filing in another 20 days. Even just preparing and filing (without any audit) seems impossible by 30th Sept.
Why CBDT and Finance Ministry forgetting the other cumbersome works to be carried out by professionals such as to add CA in assesse profile, use of digital signature uploading the 3ca/cb-cd online. Even in case of Non tax audit mentioning of Aadhar no, Passport No, All Bank account details. CBDT is doing nothing but with changes in ITR every year updating there database with the help of us. Why not a single year passes without changes in ITR and 3CA/CDS ? Even now CBDT will issue new utility to upload 3CD. Last to last yr 7 utilities were issued by CBDT and last year 3 utilities. When CBDT itself cant issue stable utility and a stable system what you expect from us?
Awaiting response from ICAI.
What action should be taken ?
This happens every year.
There should be some mechanism to curb it.
Shall we unite and fight ?
Shall we organize Bharat Band ?
or shall we accept the notification and work as bonded laourer ?
CBDT should reconsider immediately about extension.We all are very disappointed.
I TOTALLY AGREE WITH WRITER. NOW ICAI OFFICE BEARER SHOULD TAKE IMMEDIATE ACTION AND SHOULD PRESSURIZE CBDT TO EXTEND THE DATE BY TWO MONTHS OR SHOULD CONDUCT A SEMINAR ON “HOW TO COMPLETE 60 TAX AUDITS IN 20 DAYS”
Adamant Views of FM & CBDT is really painful for the compliance.Small tars will really face problems as they are not aware & understood of the changes made in the form.
What CA has to do ? Don’t we need sufficient time to conduct audit properly ? have we not lost time in filing non audit cases in the month of Aug 2015? Is it possible to conduct proper audit in such short time of 30 days ? Whether we have to audit or just file returns ? When they have not notified new forms in the month of April 2015, there is no justification in non extending due date for tax audits.
We should strongly protest against the attitude of CBDT .