In a major compliance relief for taxpayers impacted by the disruptions due to COVID-19, the Central Board of Direct Taxes (CBDT) has further extended time limits under direct tax and Benami laws. As per the notification issued today, the time for filing of original as well as revised income-tax returns for the FY 2018-19 (Assessment Year 2019-20) has been extended to 31st July. 2020. The due date for the income tax return for the FY 2019-20 (AY 2020-21) has been extended to 30th November 2020. Hence, the returns of income which are required to be filed by the 31st July 2020 and 31st October 2020 can be filed to 30th November 2020. Consequently, the date for furnishing tax audit report has also been extended to 31st October 2020. As a consequence, the date for furnishing of TDS or TCS statement and issuance of TDS or TCS certificate pertaining to the FY 2019-20 has been extended only to 31st July 2020 and 15th August 2020 respectively.
Not just this the deadline to link Aadhar number with Permanent Account Number, PAN has also been extended till March 31, 2021. June 30, 2020, was the deadline for linking PAN with Aadhar card. These measures have been announced to give relief to the taxpayers during coronavirus pandemic.
To provide relief to small and middle-class taxpayers, the date for payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is up to Rs. 1 Lakh has also been extended to 30th November 2020.
Ministry of Finance has clarified that no extension for the payment of self-assessment tax for the taxpayers with self-assessment tax liability exceeding Rs 1 lakh, in fact, these taxpayers will have to pay tax by the due dates specified in the Income Tax Act (IT Act) and delayed payment would attract interest under section 234A of the IT Act. The date for making various tax-saving investments or expenditures to claim tax breaks under Chapter-VIA-B of the IT Act which includes section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations) etc. has also been further extended to 31st July 2020. Hence the investment/ payment can be made up to 31st July 2020 for claiming the deduction under these sections for FY 2019-20. This is a big relief for those who have not been able to make investments for FY2018-19 to claim some tax relief.
With respect to capital gains the date for making an investment, construction or purchase for claiming rollover benefit or deduction under sections 54 to 54GB of the IT Act has also been further extended to 30th September 2020. Therefore, the investment/ construction/ purchase made up to 30th September 2020 shall be eligible for claiming deduction from capital gains.
The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also been further extended to 30th September 2020 for the units which received necessary approval by 31st March 2020.
The date for the passing of order or issuance of notice by the authorities and various compliances under various direct taxes & Benami Law which are required to be passed, issued or made by 31st December 2020 has been extended to 31st March 2021. The reduced rate of interest of 9% for delayed payments of taxes, levies, etc. specified in the Ordinance shall not be applicable for the payments made after 30th June 2020.
Finance Minister Nirmala Sitharaman has already announced the extension of date for making payment without additional amount under the “Vivad Se Vishwas” scheme to 31st December 2020, necessary legislative amendments for which shall be moved in the due course of time. The said Notification has extended the date for the completion or compliance of the actions which are required to be completed under the Scheme by 30th December 2020 to 31st December 2020. Therefore, the date of furnishing of declaration, passing of order, etc., under the Scheme stands extended to 31st December 2020.
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