Filing of income tax return

This query is : Resolved

Prajakta Chaudhari (Querist)
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17 August 2013 17-8-2013

Almost all companies hold their AGM on 30 Sept. each year. The Accounts & Auditor’s Report is signed around 1st September & sufficient notice is given for holding AGM.

Since the last date of filing I.T. Return is also 30 Sept., can we file the return anytime after the Directors approve the accounts or wait for shareholders to pass the accounts?

Practically speaking, it will be difficult for CAs to file all returns on 30 September, if we have to wait for shareholders’ approval.

Please enlighten.

Thanks & regards

R.V. Marathe
Chartered Accountant

CA Manish Sukhani

CA Manish Sukhani (Expert)
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18 August 2013 As a being Company, return has to submit on or before 30 September, as the accounts are ready. If any changes occurred, revised return can be filed

CA Manish Sukhani

CA Manish Sukhani (Expert)
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18 August 2013 As a being Company, return has to submit on or before 30 September, as the accounts are ready. If any changes occurred, revised return can be filed

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 In the context of filing income tax returns for companies in India, here’s a practical approach to address the situation:

### Timing of Filing Income Tax Return (ITR):

1. **Director Approval of Accounts:**
- The directors of the company typically approve the financial statements and auditor's report before presenting them to the shareholders.
- Once the directors have approved the accounts, they are considered final for the purpose of preparing and filing the income tax return.

2. **Shareholders’ Approval:**
- While shareholders' approval is important from a corporate governance perspective, it is not a prerequisite for filing the income tax return.
- Income tax returns are filed based on the finalized financial statements approved by the directors.

3. **Filing Strategy:**
- **Prepare Once Approved:** As soon as the directors approve the financial statements and auditor's report, you can proceed to prepare the income tax return.
- **Don’t Wait for AGM:** There is no requirement to wait for the AGM or shareholders' approval to file the income tax return.
- **File Before Due Date:** To avoid any penalties or consequences of late filing, aim to file the income tax return well before the due date of 30th September.

### Practical Considerations:

- **Workload Distribution:** It’s common practice for Chartered Accountants (CAs) to manage the workload by preparing and filing returns in advance of the due date.
- **Communication:** Ensure clear communication between the directors, auditors, and the CA regarding the approval of accounts and timely filing of the income tax return.
- **Documentation:** Maintain documentation of the approvals and ensure that all necessary financial statements and audit reports are ready for submission with the income tax return.

### Conclusion:

In summary, you can file the income tax return as soon as the directors approve the financial statements and auditor's report. Waiting for shareholders’ approval is not necessary for income tax filing purposes. This approach allows CAs to manage their workload efficiently and ensures compliance with the income tax filing deadline of 30th September. Always ensure that all financial statements and audit reports are in order and ready for submission along with the income tax return to avoid any last-minute complications.