More time must be allowed to small and medium organizations for compliance without adverse impact.

[DEV KUMAR KOTHARI]

Don’t wait till 15^th February, 2021 file soon ITR and MCA documents for FY ended 31.03.2020.

ITR filing in audit cases:

Readers are well aware that in case of assesses required to get accounts audited, extended date for filing of ITR is now 15^th February 2021.  Vide NOTIFICATION NO. 93/2020 dated 31st December, 2020  issued by the CENTRAL BOARD OF DIRECT TAXES.

MCA also extended date for filing without additional fees:

 MCA has also extended date for filing some of annual documents  without additional fees till 15^th February 2021 vide General Circular No. 04/2021, F. No. 01/34/2013 CL-V -Part-III Dated: 28th January, 2021.

Documents are e-forms AOC-4, AOC-4 (CFS). AOC-4 XBRL and AOC-4 Non-XBRL for the financial year ended on 31.03.2020 for which earlier time allowed was up to 31^st January, 2021.

So for compliance under IT Act and Companies Act both have to be completed by 15^th February, 2021 to avoid consequences of delayed filing.

More time is desirable for small organizations:

For large organizations like large size of listed companies, compliance is easy because they have suitable teams, ITES,  facility for work from home and larger resources of capital and organization both. Such large organizations have major portion of tax payable and compliance under the Companies Act have concern with large number of people. Therefore, a delay on their part can seriously impact tax department and all concerned people/ stake holder.

Compliance is generally voluntary:

Generally compliance is voluntary, we find that well organized large listed companies made compliance timely including holding of annual general meetings in virtual mode.

However in case of small organizations, it is not always possible to make compliance expeditiously and delay occur due to constraints of organization other resources and more dependence on outside service providers.

Small organizations must be allowed more time:

Ground reality is that in case of small and medium organizations there are many difficulties and uncertainties.

 Small and medium organizations depends on limited number of people within organization and also out of organization.

 Any problem with any of such persons and their family members can cause delay in compilations and compliances.

Therefore, for small and medium organizations more time should be allowed to file ITR without any consequence of delayed filing of ITR.

For filing of documents with MCA also it should be without additional fees and any other adverse consequences.

ITR- Relaxations should be allowed:

In case of belated ITR relaxations about levies due to delay in filing, and benefit of carry forward of losses must be allowed.

For example, a person who has suffered losses is already constrained, not allowing carry forward of loss will further penalize him although he has constrained conditions due COVI and Lockdown.

Conditions for some of deductions or benefits which depend on timely filing of ITR should also be relaxed.

Interest payable on refunds, to tax payer by the Government, should also not be denied merely for delay in filing of ITR for the reason that excess tax paid has remained with the Government.

For all such purposes, for small and medium organizations period up to 31^st March 2021 deserves to be allowed.

Small and medium organizations can be described as person/ company other than a listed company.

And any organization having annual turnover below Rs. ten crores.