Due date to file modified return extended to 31-03-23: CBDT

Order F NO. 370142/4I12022-T, dated 26-09-2022

The Finance Act, 2022 had inserted a new section 170A to enable entities going through business reorganization to file modified returns for the period between the date of effectivity of the order and the date of issuance of the final order of the competent authority. The modified return shall be furnished in the prescribed form and manner within 6 months from the end of the month in which the said order was issued.

To implement the changes, the Central Board of Direct Taxes (CBDT) vide notification no. 110/2022, dated 19-09-2022, had notified a new Rule 12AD prescribing norms for filing of returns under section 170A. Said rule provides that the modified return of income shall be furnished electronically in Form ITR-A.

Rule 12AD was notified on 19-09-2022 and comes into effect from 01-11-2022. Thus, this has reduced the time available for furnishing modified returns for successor companies in case an order of business reorganization is issued till 30-09-2022.

Thus, to address this genuine hardship and provide adequate time for furnishing modified returns, the CBDT has extended the due date for successor companies. It has been provided that in the case where the order of business reorganization was issued during the period between 01-04-2022 and 30-09-2022, the time limit to furnish a modified return shall stand extended to 31-03-2023.

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