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Taxpayers can now revise audit reports and claim unclaimed deductions

Taxpayers can now revise audit reports and claim unclaimed deductions

Taxpayers can now revise audit reports and claim unclaimed deductions
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By CNBCTV18.com Apr 3, 2021 11:45 AM IST (Published)

According to the latest notification, both businesses and professionals can revise their tax audit reports.

Central Board of Direct Taxes (CBDT) introduced new rules on Friday to ease procedural hurdles taxpayers faced while claiming deductions for spending. According to the latest notification, both businesses and professionals can revise their tax audit reports.

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Taxpayers can now include additional payment of taxes, duties, cess or PF contribution in a revised report signed by the accountant. This can be done even if the businesses have submitted the tax audit for the assessment year.
The IT Act doesn't allow spendings on interest, royalty, or fee for technical services as deductions while calculating the taxable income of a person if the tax is not deducted at source and paid to the government. Additionally, provident fund contribution and leave encashment are permitted as expenditures only in the year they are spent.
After the tax report has been submitted if the taxpayer makes payments, recalculation to the extent of expenditure eligible for deduction may become necessary. The new rule helps an assessee easily file a revised report and claim deductions. At the same time, the need on part of the taxpayer to explain the mismatched audit report and the claim for deduction also gets eliminated.
Businesses with sales operations of Rs 1 crore or above and professionals with income more than Rs 50 lakh are expected to file tax reports. But organisations having sales of up to Rs 5 crore are not expected to file tax audit reports if their receipts and spending in cash are not more than 5 percent.
Meanwhile, ITR Forms for the Assessment Year 2021-22 have been notified by the CTBT. Taking into account the ongoing COVID-19 pandemic and other crises resulting from it, the authorities have made no significant changes to the ITR forms, Times Now reported. Changes necessitated by the amendments in the Income Tax Act, 1961, however, have been incorporated.
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