ICAI writes to CBDT seeking waiver of penalty on late filing of income tax audit reports

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The Institute of Chartered Accountants of India (ICAI), the largest accounting body representing CAs across the country, has written to the Central Board of Direct Taxes (CBDT) seeking waiver of the penalty levied on late filing of income tax returns.

The letter, that was addressed to the chairman of direct taxation body, sought a reconsideration of the late-submission fee and other penalties that will be imposed on those filing Report of Audit for assessment year 2021-22 after January 15.

ICAI, in its letter, pointed towards the recent technical glitches and unavailability of certain forms as the reasons behind its demand for a penalty waiver.

"Issues like non-availability of Form No. 3CEB and difficulties in filing forms like 10C and 10B are still continuing. Taxpayers are finding difficulties in completing data for completing accounts, confirmations, reconciliation and prepare inputs for compiling tax audit report," Bloomberg Quint quoted an ICAI statement as saying.

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On January 8, a number of CA associations with members from cities like Mumbai, Ahmedabad, Chennai and Lucknow wrote to the CBDT and Finance Ministry seeking an extension of the deadline to file tax audit reports and income tax returns.

Notably, the deadline to file ITR for AY 2021-22 expired on December 31, 2021. Those who missed the last date to submit their returns can file a belated return till March 31, 2022. However, a belated return will attract late-filing fees of up to Rs 5,000 under Section 234F of Income Tax Act.