Should we, CA’s, ask for due date extension?

Should we, CA’s, ask for due date extension?

Remember when we filed the salary returns by June 30 and non-audit returns by July 31 and Tax Audit returns by Sept 30?

That time the accounts were all manual. Tallying the TB was the biggest challenge. We used to prepare final accounts with pencil and paper.

We had no 26AS, we had to get physical Form 16/16A,

We had to go to IT office and get the return forms  and challans from there, at time, we had to carry a request letter in our letterhead to get the forms!

We had to write the income tax returns by hand, attach final accounts and TDS certificates and physically file them before 5:00 PM. Remember how we did the comparison of figures with the draft and the type written one and made corrections with white ink and black pen!

At times, we used to keep a staff  in the queue at the IT office and others will shuttle between our office and IT office with filled up returns. Remember we did not have this much travel facilities that time.

And, we had to run to the bank several times to pay the taxes, that too before the banking time.

Still we managed to file most of the returns within due date!

Now compare the above with the current scenario.

TB tallying is only a nostalgic memory! ☺️

We can even get the Final accounts itself from the software. We can export it into the return filing software and get the return prepared.

We do not even need to remember the tax rate or surcharge applicability or rules of loss carried forward etc.

All will be taken care by the software.

Who is even opening the Income Ready Reckoner now?😜

We will get the TDS details and most of the income particulars from the Portal itself. We just need to download the same into our software.

We do not have to go to Bank to pay the tax

We do not have to go to IT office to file the ITR

We can even file the ITR upto 11:59 PM!

But, our client delivers the accounts at the last day only!☹️

What should you say to a salaried employee who gives you the Form 16 on 30th or 31st, where he must have got it at least 45 days before? Above all, he will be having share trading which he has not disclosed to us.

I do agree the intricacies and complexities of the business are increased manifold. But the facilities available to the clients also improved proportionately.

He has all other information in his figure tips. He will even teach us the income tax  and GST law. Everything is available to him through Internet.

It is sheer irresponsibility and don’t care attitude from the side of the client is the issue in most of the case. Now the responsibility of filing of return is CA’s responsibility, not theirs.

Rather, over the period, we made them think like that.😫

But the core fact is, the importance given by the businessman to the accounts have reduced over time and the responsibility and accountability have been very conveniently and subtly, shifted to our shoulder. And the respect given to our advices and directions also reduced.

Earlier, how they used to do the bank reconciliation from the manual bank passbook? How did they do the intra group reco? How did they do the customer / vendor reco? All these were done then also, in that paper – pencil era also. Now what prevents them from doing the same in time now, in this era of digital accounts and mobile & e-mail communication facilities?

And no client or trade bodies is bothered at all about all these. Only we, CA’s beg for extension. Why should we do so, when the delay is from the client side?

This is exactly what Gujrat High Court asked last year. Why CA’s only have this request, why trade associations not bothered?

Okay, if the delay is from our office, then we can’t blame IT department or client for that.☹️ Other than that, why should we take all the blame and responsibility on our shoulder?

I do agree that the client has so many other issues like complicated tax laws, changed business environment, increased competition et al. But they have equally beneficial opportunities also.

Secondly, the department also made them like that. Earlier there was an additional income tax if there is a tax demand. Interest rates were higher, there was more scrutiny. Now the assessee is the KING. 😳

Yes, the client has to learn good manners and discipline. (We also)☺️