Delay in making available the income tax return utilities, and voluminous data required to be filed by assesses covered under tax audit are said to be the main reasons behind seeking the extension.

The Institute of Chartered Accountants of India (ICAI) has sought a two-month extension in the due dates for filing tax audit reports and the related returns from 30th September to 30th November, 2019.

The Institute had written to Central Board of Direct Taxes Chairman PC Mody last week, requesting a two-month extension.

Delay in making available the income tax return utilities, and voluminous data required to be filed by assesses covered under tax audit are said to be the main reasons behind seeking the extension.

Also, the extension in the deadline for filing returns due on July 31, 2019 to August 31, 2019, leaving only a month for carrying out tax audits has also been pointed.

Various tax associations including the Gujarat Federation of Tax Consultants and Income Tax Bar Association (ITBA), Ahmedabad have also made representations to the finance ministry seeking deferment in the deadline for furnishing tax audit reports.

Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity.

As per these provisions, tax audit will be conducted by a practising chartered accountant who ensures the taxpayers have maintained proper books of account and complied with the provisions of the Income-tax Act. It is mandatory for businesses with an annual turnover exceeding Rs 1 crore or value of services rendered greater than Rs 50 lakhs to file tax audit reports and the related returns.

Source : https://cfo.economictimes.indiatimes.com/news/icai-seeks-2-month-extension-in-due-date-for-filing-tax-audit-reports/71220857