Govt extends the deadline for tax compliance to file a return and other records by 30 June
Swatantra Singh
Business Consultant, Director Finance & CFO at IFCL–Indian Member of Association of International Tax Consultants
Govt extends the deadline for tax compliance to file a return and other records by 30 June
Extension of different deadlines under the Direct Tax & Benami laws: Notification No 35/2020 has been released by CBDT [S.O. 2033(E)] of 24 June 2020 on Taxation & Other Laws, extending further the time-limits for numerous compliance measures. From 30th June, 2020, the saif notification will enter into force.
In view of the difficulties faced by taxpayers in meeting the statutory and regulatory enforcement criteria throughout industries as a result of the outbreaks of Novel Corona Virus (COVID-19), on 31 March 2020 the Government adopted the Taxation and Other Laws (Relaxation of Some Provisions) Ordinance, 2020 [the Ordinance], which extended various time limits, among other items. In order to provide more relief to taxpayers for creating multiple compliance requirements, on June 24, 2020, the Government released a Notification, the main features of which are as continues to follow:
I. Income Tax Returns for AY 2019-20: The deadline for filing both initial and amended revenue-tax returns for FY 2018-19 (AY 2019-20) was extended to July 31 , 2020.
II. Extended due dates for AY 2020-21: Earlier, at a press conference on 13 May 2020, Finance Minister announced an extension to 30 November 2020 for all categories of taxpayers of the due dates for filing income returns for AY 2020-21. Now told of the launch. According to the Notification, the due date for the FY 2019-20 income tax return (AY 2020-21) was extended to November 30th, 2020. Therefore, income returns that are required to be filed by July 31 , 2020 and October 31, 2020 can be filed by November 30th, 2020.
The deadline for the furnishing of the tax audit report has therefore also been extended to 31 October 2020. As per the Finance Act, 2020 amendment, a tax audit report is required to be submitted one month prior to the due date of the return of income.
III. Payment of self-assessment tax: 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 was also extended to 30 November 2020 in order to provide relief to small and middle class taxpayers. However, it is clarified that for taxpayers with self-assessment tax liability exceeding Rs. 1 lakh there will be no extension of date for payment of self-assessment tax. In this situation, the entire self-assessment tax is payable by the due dates set out in the 1961 Income Tax Act (IT Act) and delayed payment would attract interest pursuant to section 234A of the IT Act.
IV. Investment time limit u / s 80C etc. extended: the date for making various investments / payments in order to demand a deduction under Chapter-VIA-B of the IT Act, which includes sections 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80 G (Donations) etc., was also extended to 31 July 2020. Hence the investment / payment for requesting the deduction under these parts for FY 2019-20 may be made up to July 31 , 2020.
V. Investment time etc. for deduction u / s 54 to 54 GB extended: The investment / construction / purchase date for seeking roll-over benefit / deduction for capital gains under articles 54 to 54 GB of the IT Act was also extended to 30 September 2020. Consequently, the investment / construction / purchase made up to September 30th, 2020 will be entitled to assert capital gains deduction.
VI. Extended date for start of operation of the SEZ units: The date for the start of operation of the SEZ units for claiming deduction pursuant to section 10AA of the IT Act was also extended to 30 September 2020 for units receiving the necessary approval by 31 March 2020.
VII Time limit stretched for the furnishing of TDS / TCS statements and the issuance of TDS / TCS certificates: the furnishing of TDS / TCS statements and the issuance of TDS / TCS certificates is a prerequisite for taxpayers to start preparing their income returns for FY 2019-20;
VIII. Time limit for issuing notices and extended date for PAN-Aadhaar linking: the date on which the authorities passed an order or released a notice and various compliance with various Direct Taxes & Benami laws to be passed / ordered / released by 31 December 2020 has been extended to 31 March 2021. The date for linking Aadhaar with PAN would therefore also be extended to March 31st, 2021.
IX. Gain of lower interest rate removed after June 30: The decreased interest rate of 9 per cent for overdue payments of taxes, levies etc. stated in the amendment shall not apply to payments made after June 30th, 2020.
Summary are as below
· Due date for filing F.Y 2018-19 Income Tax Return has been extended to 31.07.2020.
· Due date for filing FY 2019-20 Income Tax Return has been extended to 30.11.2020.
· The due date for furnishing the audit report has been extended to 31.10.2020 under any provision of Income Tax for FY 2019-20.
· In cases where self-assessment tax is up to Rs 1 lakh for FY 2019-20, waiver of interest u / s 234A.
· Deductions under Ch-VIA, such as Sec 80C, 80D, 80 G, etc. can now be made for FY 2019-20 up to 31.07.2020.
· Deductions u / s 54 or 54 GB is extended to 30.09.2020 for expenditure declines from 20.03.2020 to 29.09.2020
· TDS Certificates for Q4 2019-20 can be given until 15.08.2020 including Employee Form 16.
· The filing date for TDS / TCS statements for Q4 2019-20 has been extended to 31.07.2020
· The furnishing date of TDS / TCS statements for Q4 2019-20 government offices has been extended to 15.07.2020
· The scheme Direct Tax Vivad se Vishwas was extended until 31.12.2020.
Regards
India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
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