The tax department has provided significant relief to some companies regarding filing income tax returns.
This relief is for companies that have undergone business reorganization. The CBDT has extended the deadline for such companies to file modified income tax returns.
New Deadline: June 30
The CBDT issued an order about this on Thursday. As per the CBDT order, companies going through business reorganization can now submit modified returns until June 30.
This extension in the deadline will help companies that have experienced corporate changes such as mergers, demergers, or amalgamations.
Details of CBDT Order
As per the CBDT order, companies going through reorganization, such as amalgamation, merger, demerger, or the process of succession after insolvency with approval from the competent authority, can now submit modified returns until June 30, 2024.
The deadline extension for modified returns applies to companies that began their reorganization process after June 2016 and before April 2022.
Provision made in Finance Bill 2022
A rule was created in the Finance Bill 2022 for companies going through business changes.
These companies were required to file modified income tax returns after their changes.
However, this rule only applied to companies that received the reorganization order between April 1 and September 30, 2022.
CBDT Order Resolves Confusion
After modified returns were mentioned in the Finance Bill 2022, companies that had received their reorganization order before April 1, 2022, faced confusion.
However, after the new CBDT order, this confusion has been resolved, and companies that started the reorganization process before the Finance Bill 2022 implementation now have extra time to file modified returns.
