CBDT Extends 26Q, 27Q & 27EQ Deadlines (Q1 of FY 2023-24)
An overview on CBDT extends Q1 deadline for FY 2023-24
In this post, we will address the extension of the time limits for submitting various TDS/TCS (Tax Deducted at Source/Tax Collected at Source) statements published by The Central Board of Direct Taxes (CBDT). Circular 9/2023, published June 28, 2023, implements this change, offering relief to taxpayers and lowering compliance requirements.
Deadline Extension for First Quarter TDS/TCS Statements
In the first quarter of the financial year 2023-24, the CBDT has extended the due date for filing TDS/TCS statements in Forms 26Q, 27Q, and 27EQ. Taxpayers now have until September 30, 2023, to file previously due statements by July 15 or July 31, 2023.
For the first quarter of FY 2023-24, which covers April to June 2023, this extension applies to both the statement of deduction of taxes (Form 26Q or 27Q) and the statement of collection of taxes (Form 27EQ).
CBDT’s Notifies Relaxation in Compliances
The CBDT has exercised its powers under section 119 of the Income-tax Act, 1961, to provide relaxation regarding the above mentioned 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 deadline for the statement of deductions of taxes for the first quarter of the financial year 2023-24, which must be filed in Form 26Q or 27Q, has now been extended to September 30, 2023. Previously, under Rule 31A of the Income-tax Rules of 1962, taxpayers were required to submit this declaration by July 31, 2023.
B. Extension for Statement of Collection of Tax (Form 27EQ)
Similarly, the statement of tax collection for the first quarter of fiscal year 2023-24, which is needed in Form 27EQ, has been extended until September 30, 2023. Rule 31AA of the Income-tax Rules of 1962 initially scheduled the due date for this declaration for July 15, 2023. By extending the deadline, the CBDT hopes to reduce the strain on taxpayers and encourage easier compliance processes.
Conclusion
The CBDT’s extension of the time limits for submitting 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. To ensure error-free and timely filing of TDS/TCS statements, taxpayers should utilize the extra time wisely.
