The Central Board of Direct Taxes (CBDT) has directed companies to submit provisional balance sheets along with their income tax returns, especially in cases where final audited statements are not yet available by the filing deadline. This measure is aimed at promoting timely compliance while ensuring that preliminary financial information is available for assessment and cross-verification purposes. The move is particularly relevant for companies seeking to meet tax deadlines despite delays in finalizing their audit reports.

According to the directive, provisional balance sheets must be prepared by the applicable accounting standards and should reflect a true and fair view of the financial position as on the balance sheet date. These documents must include key figures such as revenue, expenses, liabilities, assets, and capital structure. Companies will be required to upload the provisional financials through the e-filing portal, along with a declaration stating the reasons for the delay in audit finalization and a commitment to submit the final audited version as soon as available.

The CBDT has clarified that provisional filings will not exempt companies from the requirement to file audited financial statements, and any discrepancies between the provisional and final versions must be explained with supporting documentation. Tax professionals are advised to ensure accuracy and consistency in provisional data to avoid potential scrutiny or reassessment. This interim filing mechanism is designed to reduce the incidence of late returns and provide tax authorities with timely visibility into corporate financials, even in the absence of a completed audit.