The Bombay High Court issued an interim order on December 20, 2024, extending the income tax return (ITR) filing deadline to January 15, 2025, to comply with their tax obligations.
Extension Effects
This extension allows resident individuals who did not file their ITR before the original deadline (July 31, 2024) to do so now as a delinquent return. Likewise, those who already filed their ITR but need to correct errors can file a revised return.
Relevance for Multinational Enterprises and Transfer Pricing
Multinational companies operating in India should pay particular attention to this extension, especially regarding Transfer Pricing. Accurate and timely filing of Transfer Pricing documentation is crucial to avoid penalties and ensure compliance with Indian tax regulations.
Recommendations for Taxpayers
- To verify information: Review your tax return to ensure accuracy and updating of all information.
- To file pending returns: If the ITR has not yet been filed, take advantage of this extension to fulfill your tax obligations.
- To correct errors: If errors exist on an already-filed return, use this period to file a revised return.
Conclusion
This extension provides a valuable opportunity for Indian taxpayers, including multinational companies, to ensure compliance with their tax obligations. This additional time must be used to review and correct any inconsistencies in tax returns, particularly in complex areas such as Transfer Pricing.
Frequent Questions
- What is the new deadline for filing delinquent and revised tax returns? January 15, 2025.
- Who can benefit from this extension? Individuals residing in India who did not file their ITR before the original deadline or need to revise an already filed return.
- How does this extension affect multinational companies? It grants them additional time to ensure that their returns, particularly related to Transfer Pricing, are accurate and comply with Indian tax regulations.
For customized advice to ensure compliance with Indian tax regulations, please do not hesitate to contact us. At TPC Group, we are at your disposal to provide the support required to navigate the tax complexities and optimize your international operations.
Source: Economic Times
