Stories
Tax Audit Deadline Looms: Avoid Costly Mistakes Before September 30
- •Taxpayers with business or professional income must ensure figures in their Tax Audit Report (TAR) accurately reflect in their Income Tax Return (ITR) to avoid inconsistencies.
- •Reconcile books of accounts, audited financial statements, Form 3CD, GST records, Form 26AS, Annual Information Statement (AIS), and ITR meticulously before filing.
- •Common errors include mismatches in net profit, turnover, or Balance Sheet figures, failure to add back inadmissible expenditures, and incorrect reporting of brought-forward losses or depreciation.
- •Incorrect audit report details, inappropriate ITR forms, and discrepancies in TDS, TCS, and advance-tax credits with Form 26AS/AIS can lead to defective returns or queries.
- •Do not assume an extension; prepare for the September 30 deadline as the Central Board of Direct Taxes (CBDT) has not issued a formal notification for an extension.
Key Questions Answered
The tax audit deadline is September 30. Taxpayers must carefully reconcile their books, financial statements, Form 3CD, GST records, Form 26AS, AIS, and ITR before filing to prevent small differences in turnover, profit, expenses, or tax credits from creating inconsistencies.
Key mistakes include mismatched financial figures between the ITR and Form 3CD, failing to add back inadmissible expenditures like TDS defaults or cash payments, omitting tax auditor observations, incorrectly reporting brought-forward losses, and using an inappropriate ITR form. Taxpayers must also ensure tax credits match Form 26AS and AIS.
Taxpayers should not assume an extension has been approved based on requests made on social media or by professional associations. Unless the Central Board of Direct Taxes (CBDT) issues a formal notification, taxpayers must continue preparing for the September 30 deadline.
