E-filing of Audit Reports Must with Tax Returns
The new income-tax forms notified by the government have made it mandatory for many assessees to file their audit reports in the electronic mode at the time of filing tax returns.The list of audit reports required to be furnished with return of income has been expanded. As many as 12 audit reports have been electronically enabled against three earlier,
The filing of audit reports was made mandatory in ITR Form 4, 5, 6 and 7 after the tax department noticed discrepancies in filing of some returns along with audit reports. The Institute of Chartered Accounts of India brought to the notice of the I-T department that some companies were furnishing fake name and registration numbers of auditors in their returns.
“People were not getting their accounts audited to save money. It was found that the name of the chartered accountant furnished in the return belonged to someone who had expired,”
Since only one per cent of the cases come up for scrutiny, some taxpayers were taking the risk of not actually getting their accounts audited. In the event of their case coming up for scrutiny, the taxpayer would approach a chartered accountant and get the books audited at a higher fee.
From assessment year 2013-14 onwards, in case an assessee is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB, he shall file the report electronically on or before the date of filing the return of income. Further, the assessee who is liable to file the above reports electronically shall file the return of income electronically,” said the notification from the tax department.
As per Notification No.34/2013 dated 01/05/2013, E-filing of audit reports shall be mandatory in following cases:
(a) Audit report under Sec. 44AB;
(b) Audit report under Sec. 92E in respect of international transaction; or
(c) Audit report under Sec. 115JB in respect of MAT computation.
Pursuant to amendment in rule 12 of the Income Tax Rules, by the notification no 42 dated 11/6/2013, the following proviso has been inserted in sub- rule (2) of rule 12.
“Provided that where an assessee is required to furnish a report of audit specified under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB of the Act, he shall furnish the same electronically.”
In simple words, the assessee who is required to furnish the tax audit report for AY 2013-14 shall submit the tax audit report electronically.