ITR Filing: Offering relief to taxpayers, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing various reports of audit for the previous year 2023-24. The new due date is fixed on October 7, 2024, compared to earlier September 20.

The reason behind the extension is because of difficulties faced by the taxpayers and other stakeholders in the electronic filing of various reports.

In its latest report, CBDT said, “On consideration of difficulties faced by the taxpayers and other stakeholders in electronic filing of various reports of audit under the provisions of the Income-tax Act,1961 (Act), the Central Board of Direct Taxes (CBDT), in the exercise of its powers under Section 119 of the Act, extends the specified date of furnishing of report of audit under any provision of the Act for the Previous Year 2023-24, which was 30th September, 2024 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 071h October, 2024.”

What is tax audit report?

As per the Income Tax Department guidelines, a tax audit involves an expression of the tax auditor’s opinion on the truth and correctness of certain factual details, furnished by the assessee to the Income Tax Authorities to enable correct assessment of total income considering all allowances, deductions, losses, adjustments, exemptions etc. and determination of tax thereon. It is conducted to achieve the following objectives:

– To ensure proper maintenance and correctness of books of accounts by the taxpayer and certification of same by the CA

– Report observations/discrepancies noted by the CA during audit

– Report prescribed information in compliance with various provisions of the Income Tax Act as referred to in Form 3CD.

Notably, to discourage tax avoidance and evasion, the requirement of a tax audit was introduced by the Finance Act of 1984, by inserting a new section 44AB w.e.f Assessment Year 1985-86.

There are two types of forms for filing income tax audit reports namely 3CA-3CD and 3CB-3CD.

Moreover, Form 3CA-3CD is applicable in case of a person who is required by or under any law to get their accounts audited; while Form 3CB-3CD is applicable in case of a person not being a person referred above i.e. where accounts are not required to be audited under any other law.

Also, a CA who is registered on the e-Filing portal and one who has been assigned by taxpayer to audit Form 3CA-3CD is entitled to access this form.

Meanwhile, rule 6G prescribes the manner of reporting and furnishing of Report of Audit of accounts to be furnished under section 44AB, which is meant for the audit of accounts of certain persons carrying on business or profession.