ITR Filing Deadline Extended to December 15 For These Taxpayers

The Central Board of Direct Taxes (CBDT) has granted a 15-day extension for taxpayers involved in international or specified domestic transactions who need to file reports under Section 92E of the Income-tax Act. This extension aims to provide additional time for compliance with transfer pricing regulations.

Deadline Extension and Requirements

Originally, the deadline for filing Income Tax Returns (ITR) for these taxpayers was set for November 30, 2024. However, due to the extension, the new filing deadline is now December 15, 2024, for the Financial Year 2023-24 (Assessment Year 2024-25). Taxpayers involved in international or specified domestic transactions are required to submit detailed documentation under Section 92E to ensure compliance with transfer pricing rules.

For businesses with transactions exceeding ₹20 crore, transfer pricing rules are mandatory. Non-compliance with this regulation could result in a penalty.

Consequences For Non-Compliance

The Income-tax Act imposes stringent penalties for businesses that fail to submit their chartered accountant’s report by the original deadline of October 31. If businesses miss this deadline, they could face a hefty penalty of ₹1 lakh. This penalty applies even if the report is only slightly delayed, making it crucial for businesses to ensure timely submission of their compliance reports.

By extending the filing deadline to December 15, 2024, the CBDT has provided businesses with a crucial opportunity to avoid this penalty. The additional time allows companies to ensure that their reports are accurate and complete, thereby reducing the risk of errors or incomplete submissions. It also ensures that businesses have ample time to consult with chartered accountants and tax professionals, ensuring compliance with transfer pricing guidelines.

Conclusion

The CBDT’s decision to extend the deadline for filing ITRs for taxpayers involved in international or specified domestic transactions is a welcome relief. It offers businesses a second chance to meet the stringent reporting requirements, ensuring they comply with transfer pricing regulations. With the new deadline set for December 15, 2024, businesses now have more time to prepare their reports, avoid penalties, and ensure accurate and compliant filings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.