This Farce called Postponement of Tax Audit Report from 30-Sep-2014 to 30-Nov-2014

The credit for this #Infographic goes to KDK Software but despite so many requests and protests, there seems to be no end to this controversy which strongly reminds me of the controversy of whether the hen's egg came first or the hen's chick first came into this world.

Let me attempt to explain in laymen's terms, without going too deep into the technical language that we CA's generally tend to adopt. The Central Board of Direct Taxes (CBDT) released a circular stating that because of the 'complications' of the filling up of the newly introduced electronic Form 3CA / 3CB / 3CD, which essentially deal with the Tax Audit Report that is now required to be filled up and submitted electronically vide a software which has been introduced by them (I would like to say 'Thrust upon', but it would be too impolite to say that) to be used by Chartered Accountants prior to filing the income-tax returns of businessmen etc. who come under the scope envisaged by the Section 44AB / 44AD of the Income Tax Act, India.

The CBDT is, of course, empowered under the Income-Tax Act, to release any circular that deals with easing the duty cast upon the citizens of India for compliance with the various requirements of the Income-Tax Act and the Income Tax Rules framed in conjunction with it. So out came the circular purportedly to ease the burden on the Chartered Accountants duty of filling up properly and submitting electronically the Tax Audit report under the aforesaid provisions.

However, the controversy that arose was there was no mention of whether the date for filing the income-tax return had been extended or not to 30-Nov-2014, because that does not come under the scope of the powers given to the CBDT. However, the Income Tax Return cannot be filed without the Tax Audit Report Date being mentioned within it's framework as envisaged by the submission procedure wherein the said ITR has to be digitally signed by the assessee. So the situation as it stands today, upto the writing of this article is that you have to file the Income-Tax Return on 30-Spe-2014, with the report being dated 30-Nov-2014, and thereafter, submit the Tax Audit Report on 30-Nov-2014. What a farce that is going to be!!