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CBDT Allows Filing Of Revised Tax Audit Report

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The CBDT on Friday came up with new rules for eliminating the various procedural hindrances in claiming deductions in respect of some expenditures and thereby has allowed revision in tax audit reports by businesses and professional.

 

CBDT Allows Filing Of Revised Tax Audit Report

In a notification, the CBDT said that after the taxpayers makes any of the payments including taxes, duties or cess of PF contribution of employees after the tax audit report has been filed for a particular assessment year, a modified tax audit report duly signed by the auditor can be submitted to claim deduction in respect of that payment or expenditure.

There is a provision in the Income tax Act as per which some of the expenditures including interest, royalty, or fee for technical services are disallowed as a deduction when computing the assessee's taxable income if there is no tax deduction at source. Besides some of the expenditure including provident fund contribution for employees as well as leave encashment can be claimed in the same year in which it is spent.

And now in a case when some payment for which the deduction is allowed when computing taxable income is made after the tax audit report has been submitted, a re-computation up to the extent of eligible deduction becomes necessary. And so with the relaxation via the new rule the taxpayer will not be explainable for any mismatch between the audit report and the amount claimed for deduction.

Tax audit reports are required to be furnished by both professionals and businesses with turnover of more than Rs. 50 lakh and Rs. 1 crore, respectively.

GoodReturns.in

Read more about: income tax cbdt
Story first published: Saturday, April 3, 2021, 11:40 [IST]
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