ROI FILING DUE DATE IN CASE OF PERSONS HAVING TDS, TCS AND DEALING WITH PERSONS HAVING AUDIT OBLIGATIONS SHOULD BE 30TH NOVEMBER.

[CA DEV KUMAR KOTHARI]

Income received after TDS

Scope of TDS has been increased, and many assesses receive income after TDS. The person deducting and depositing TDS is allowed time to file TDS returns which can be revised and rectified also.

Most of such persons deducting tax are required to get their accounts audited. The due date in filing of their returns is usually 30th September of the assessment year.

Changes and revisions in TDS:

Many times changes in status and amount of TDS occur due to several reasons like:

Filing of TDS return by person liable to deduct tax may be delayed.

TDS return may have to be revised or rectified by such persons.

During course of audit, year end adjustments are also made and if any amount is credited to account of payee which is subject to TDS, then tax has to be deducted and deposited, although payment is made after 31st March.

This may be delayed and many times it is after the original date for filing of TDS returns.

Form 26As is in important source of information:

For assesses whose receipts are subject to TDS, report in form 26AS is an important information and it need to be reviewed before filing of ITR.

As noted earlier, there can be reasons for delay in tax deduction, deposit and filing of TDS returns. TDS return can be revised and rectified by the person liable to deduct tax.

Form 26AS shows several information about incomes and taxes. Many of such information are rectifiable and revisable as the person doing TDS, TCS, may have to revise their returns.

Sometime due to delay on part of tax deductor or tax collector in deducting, collecting, paying TDS TCs and filing of final TDS TCS returns form 26AS are not updated. The final information in form 26AS may not be available before the due date for filing of Return of Income.

In form 26AS many times amount of TDS / TCS are not final. It can be unmatched, provisional, or overbooked etc. Which can change later on.

Some practical instances:

Recently we came across cases where person liable to deduct tax, has issued certificate about payment made and tax deducted till March. As per view taken by them earlier, payment made during April was to be accounted for during April and tax was to be deducted in next year. However, subsequently they deducted tax based on accounting adjustments made as on 31.03.2018. It is likely that more provisioning and tax deduction can be made by them in course of finalization and audit of accounts.

Therefore, where the due date to file ROI is 31st July,2018 and income of assesse is subject to TDS, he at best have provisional information about income tax TDS. There can be several mismatches which need to be rectified, reconciled which takes place after 31st July.

If assesse shows some income on which tax has not been deducted so far, he cannot claim TDS as there will be mismatch from Form 26AS.

If he does not take any such income and file ROI, and subsequently the person paying income account for the same and deduct tax, then there will be mismatch and can also be a case to be blamed for concealment of income.

Audited accounts are also provisional before they are approved in AGM:

In case of many like companies, societies, co=operative societies etc. audited accounts are also provisional as they have to be approved in appropriate forum e.g. in case of a company by the Annual general meetings of shareholders. This also take place after due date in the case of such assesse.

Practical difficulties in filing of ROI by 31st July,2018:

Besides difficulties relating to TDS and TCS there are also other difficulties of assesse in reconciliation and confirmation of accounts. This is because many parties with whom assesse has dealing are liable to get their accounts audited and therefore due date in case of such persons is 30th September, 2018. Before that final facts, figures, and confirmations may not be available.

Due date should be 30th November:

Therefore, in cases of TDS/ TCS and in case of persons having dealing with other persons liable to get accounts audited due date to file ROI should be 30th November. This is because audit is completed by 30th September and many adjustments are made during course of audit and tax audit. Therefore at least two months’ time should be allowed to file ROI in all such cases.

It is worth to recall that earlier due date to file ROI in audit cases was 31st December, this was subsequently revised to 30th November, 30th October and is now 30th September.

30th November is reasonable in all such cases as by that time accounts can be finalized and approved, any obligations of TDS/ TCS which are found in course of finalization of accounts can be given effect to.

Timely extension of due date is desired:

As experienced in past extension of due dates are allowed at last moment. This should be avoided and extension should be notified well in advance.