The Central Board of Direct Taxes (CBDT) has recently announced an extension of the time limits for the submission of certain TDS/TCS (Tax Deducted at Source/Tax Collected at Source) statements. This move comes through Circular 9/2023 dated June 28, 2023, providing relief to taxpayers and easing compliance requirements.
Deadline Extension for First Quarter TDS/TCS Statements
The CBDT has extended the due date for filing TDS/TCS statements in Forms 26Q, 27Q and 27EQ for the first quarter of the financial year 2023-24. Originally scheduled to be filed by July 15 or July 31, 2023, taxpayers now have until September 30, 2023, to submit these statements. This extension specifically applies to the statement of deduction of tax (Form 26Q or 27Q) and the statement of collection of tax (Form 27EQ) for the first quarter of FY 2023-24, which covers the period of April to June 2023.
CBDT’s Notifies Relaxation in Compliances
The CBDT has exercised its powers under section 119 of the Income-tax Act, 1961, to provide relaxation in respect of the aforementioned compliances. The extension allows taxpayers additional time to furnish the required TDS/TCS statements without facing penalties or non-compliance issues. Let’s explore the specific relaxation provided by the CBDT:
CBDT Income Tax Circular 9/2023 dated 28/06/2023: Deadlines Extended for Submission of TDS/TCS Statements in Form 26Q, 27Q & 27EQ (Q1 of FY 2023-24)
A. Extension for Statement of Deduction of Tax (Form 26Q or 27Q)
The statement of deduction of tax for the first quarter of the financial year 2023-24, which is required to be furnished in Form 26Q or 27Q, now has an extended due date of September 30, 2023. Previously, taxpayers were expected to submit this statement by July 31, 2023, under Rule 31A of the Income-tax Rules, 1962. With the new deadline, taxpayers have additional time to ensure accurate and timely submission.
B. Extension for Statement of Collection of Tax (Form 27EQ)
Similarly, the statement of collection of tax for the first quarter of the financial year 2023-24, required to be furnished in Form 27EQ, has been granted an extension until September 30, 2023. Initially, the due date for this statement was set for July 15, 2023, as per Rule 31AA of the Income-tax Rules, 1962. By extending the deadline, the CBDT aims to alleviate the burden on taxpayers and facilitate smoother compliance processes.
The CBDT’s extension of the time limits for the submission of certain TDS/TCS statements provides much-needed relief and flexibility for taxpayers. By pushing back the due date for filing Forms 26Q, 27Q and 27EQ for the first quarter of FY 2023-24 to September 30, 2023, the CBDT aims to streamline compliance processes and reduce the burden on taxpayers. This extension offers numerous benefits, including reduced compliance pressure, avoidance of penalties, enhanced accuracy and improved efficiency in tax filing. Taxpayers are advised to utilize the extra time effectively to ensure error-free and timely submission of TDS/TCS statements.
CA Abhinav Aggarwal is a qualified Chartered Accountant and ICAI member since 2010. He holds vast experience in Audit, Income Tax & GST and is a passionate writer on the CA profession and related topics.
Disclaimer: While reasonable efforts have been made to ensure the accuracy and reliability of the information presented in this article, it should not be considered as professional tax advice or guidance. For compliance, the readers are advised to directly refer to the relevant laws, regulations and notifications issued by the appropriate authorities.