CBDT vide Circular No. 20/2022 dated 26.10.2022 has extended the due date for furnishing the return of income under section 139(1) of the Income-tax Act, 1961 (‘Act’) in case of companies and other persons who are subject to compulsory tax audit to 7th November 2022 from 31.10.2022.
In a circular issued on 26th October 2022, the Board has stated that in consequence of the extension of the due date for various reports of audit in the case of assessees referred to in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act to 071h October 2022 by Circular No. 19/2022 dated 30.09.2022, CBDT in exercise of its powers under Section 119 of the Act, extends the due date of furnishing of Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2022-23, which is 31st October 2022 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07th November, 2022.
Though the reason for the extension cited is the extension of the due date for furnishing the tax audit report due date by seven days from 30.09.2022 to 07.10.2022, but the extension of seven days to November 7, 2022 from 31.10.2022 in the due date for furnishing the return of income is granted to all the assessees who are covered under clause (a) of Explanation 2 to section 139(1).
Clause (a) of Explanation 2 to section 139(1) covers the following persons-
(i) Company
(ii) Any other person who is subject to tax audit under the Act or under any other law
(iii) any partner of a firm which is subject to tax audit under the Act or under any other law
In the case of a non-company assessee, it is crystal clear that the extension in due date for furnishing return of income or ITR is given only for those assessees who are subject to compulsory tax audit under the Act or subject to audit under any other law for the time being in force.
However, confusion is prevailing in the case of company assessees. It seems that in the case of companies, the due date for furnishing return of income is extended only to those companies which are subject to tax audit since the reason cited for the extension of the due date for filing return of income is for the extension granted for filing of tax audit reports by 7 days earlier in September 2022. However, this is not the case.
The operative part of the CBDT Circular in clear and unambiguous words states that the due date for furnishing the return of income for Assessment year 2022-23 in case of assesses referred to in clause (a) of Explanation 2 to Section 139(1) of the Act which is otherwise prescribed under the Act as 31.10.2022 is extended to 07th November 2022.
As the due date of filing of return of income in the case of a company whether the same is subject to tax audit under the Act or not is 31.10.2022 and all the company comes under clause (a) of Explanation 2 of section 139(1), hence, it is irrelevant whether a company is liable to furnish tax Audit Report in Form 3CA-3CD or not. Therefore, it is concluded that the due date for furnishing income tax returns of all the companies, whether required to file tax audit reports or not, is extended to 7th November 2022.
Earlier, on 30.09.2022, CBDT vide Circular No. 19/2022 extended the due date for filing various reports of audit for Assessment Year 2022-23 under various provisions of the Act by seven days from 30th September, 2022 to 7th October, 2022 for certain categories of assessees.
As a consequence, the due date for furnishing the return of income is also further extended by 7 days for certain categories of assessees under section 139 as stated above from 31.10.2022 to 07.11.2022.
Read the full text of CBDT Circular No. 20/2022 dated 26.10.2022 on Extension of due date for furnishing return of income for AY 2022-23
Circular No. 20/2022
F. No. 225/49/2021/ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
*****
New Delhi, dated 26th October 2022
Subject: - Extension of due date for furnishing return of income for the Assessment Year 2022-23- reg.
In consequence to extension of due date for various reports of audit in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act to 07th October 2022 by Circular No. 19/2022 dated 30.09.2022, Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act,1961 (Act), extends the due date of furnishing of Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2022-23, which is 31st October 2022 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act, to 07th November, 2022.
Sd/-
(Ravinder Maini)
Director to the Government of India
Download CBDT Circular No. 20/2022 dated 26.10.2022 on Extension of due date for furnishing return of income for AY 2022-23 in PDF format
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