Gujarat HC extends date for filing I-T return to Nov 30

The Gujarat high court on Monday directed the Central Board of Direct Taxes (CBDT) to extend the due date for filing income tax (I-T) return from September 30 to November 30.
However, if the taxpayer chooses to file an I-T return after September 30, interest will be payable by the taxpayer under section 234A of the I-T Act, from October 1, 2014 up to the date of filing the return of income.
Interest under this section, is a simple interest of 1% against the net tax amount.
In other words, if the taxpayer files his tax return on November 20, he will have to pay interest for two months (October and November).
Similar cases are pending before the Delhi, Bombay and Rajasthan high courts. The Bombay high court heard the matter today and is likely to issue an order on Wednesday.
Non-salaried taxpayers who are covered under tax audit provisions, but not transfer pricing provisions, are required to file their tax returns and get their accounts audited (for tax purposes) by September 30. This order by the Gujarat high court will provide huge relief to a large section of tax payers — businessmen whose sales, turnover or gross receipts exceed Rs 1 crore and professionals whose gross revenue is more than Rs 25 lakh.
In August, the CBDT had extended the due date for filing the tax audit report to November 30 (via its order dated August 20). This extension was introduced owing to the substantial changes made in the revised Tax Audit Report Form (Form 3CD). However, the CBDT’s order was silent on whether the date for filing the I-T return had also been extended.
As details contained in Form 3CD are the basis for filing the I-T return, many taxpayers faced difficulties. Post the tax audit, there could be a change in the taxable income figure, which meant that these tax payers would have to file a revised return of income and could also be subject to penal proceedings.
This prompted chartered accountants, tax practitioners and professional tax associations to file writ petitions across high courts in India, seeking extension of the date for filing the tax return.
In Gujarat, for instance, a writ petition was filed by Rajni M Shah, a chartered accountant and All Gujarat Federation of Tax Consultants. In Mumbai, a writ petition has been filed by The Chamber of Income-tax Consultants and others.