CBDT eases Income Tax and Audit Compliance Norms

In consideration of the challenges reported by the taxpayers and relevant stakeholders following the recent surge in the COVID-19 cases across the country and issues faced in electronic filing of various audit reports under the mandate of the Income Tax Act, 1961; the Central Board of Direct Taxes has notified the extension of timelines for filing  Income-tax returns and various reports of audit for the Assessment Year 2021-22, in the exercise of its powers under Section 119 of the Income-tax Act,1961.

The Circular provides the following clarifications and relaxations;

• The extension shall not apply to Explanation 1 to Sec. 234A of the Act, and in cases where the tax on the total income is reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that Sec. 207, exceeds one lakh rupees.
• Under Sec. 207(2) of the income tax Act, 1961. individual Indian resident referring to Sec. 207(2) the tax paid by him Under Sec. 140A of the Income-tax Act 1961 shall be within the due date (without extension under Circular No.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deemed to be the advance tax.