Extension of time limits for compliances of Income Tax
Taxpayers across India have faced many challenges in complying with the statutory and regulatory timelines, due to the outbreak of COVID-19. In this regard, the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31 March 2020 to extend various due dates. The Central Board of Direct Taxes (CBDT) has recently issued a notification no. 35/2020 dated 24 June 2020 (it will come into force from 30 June 2020) and a Press Release dated 24 June 2020 to further extend timelines of compliances under the Income Tax Act, 1961 (ITA). Accordingly, the timelines for the following Compliances are as follows:
- The due date for filing of Income Tax Return for the Financial Year 2018-19 has been extended to 31 July 2020. Earlier, this date was extended to 30 June 2020.
- The due date for filing of Income Tax Return for the Financial Year 2019-20 extended from 31 July 2020 and 31 October 2020 to 30 November 2020 and the due date for furnishing of the report of audit under any provision of ITA for the Financial Year 2019-20 extended to the 31 October 2020. It was announced earlier on 13 May 2020 and is now notified by the aforesaid notification dated 24 June 2020.
- The date for furnishing Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) Statement for the 4th quarter of the Financial Year 2019-20 has been extended to 31 July 2020. Earlier, this date was extended to 30 June 2020.
- The date for issuance of TDS certificate (Form 16) to the employee by the employer for Financial Year 2019-20 has been extended to 15 August 2020. Earlier, this date was extended to 30 June 2020.
- The date for making investment or construction or purchase for claiming rollover benefit in respect of capital gains under Sections 54 to Section 54GB of the ITA has been extended to 30 September 2020. Earlier, this date was extended to 30 June 2020.
- The date for making investment and payments for claiming deduction under Chapter-VI-A (B) of the ITA which includes Section 80C (LIC, PPF, NSC etc.), Section 80D (Mediclaim), 80G (Donations), etc. for Financial Year 2019-20 has been extended to 31 July 2020. Earlier, this date was extended to 30 June 2020.
- The date for payment of self-assessment tax in the case of a taxpayer having self-assessment tax liability up to INR 0.1 Million for the Financial Year 2019-20 has been extended to 30 November 2020. There shall be no interest under Section 234A of the ITA in case such amount is paid by 30 November 2020. However, in case the amount of self-assessment tax exceeds INR 0.1 Million for the Financial Year 2019-20, the whole amount is required to be paid as per the specified due dates in the ITA otherwise any delay in payment would attract interest under Section 234A of the ITA.
- Direct Tax Vived se Vishwas scheme has already been extended to 31 December 2020 (earlier, this date was extended to 30 June 2020). It was announced earlier on 13 May 2020 and is now notified by the aforesaid notification dated 24 June 2020.
- The date for commencement of operation for the Special Economic Zone (SEZ) units for claiming deduction under Section 10AA of the ITA has been further extended to 30 September 2020 for the units which received necessary approval by 31 March 2020.
- The date of 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/made by 31 December 2020 has been extended to 31 March 2021. Consequently, the date for linking Aadhaar with PAN would also be extended to 31 March 2021.
- The reduced rate of interest of 9% for delayed payments of taxes, levies, etc. specified in the Ordinance dated 31 March 2020 shall not be applicable for the payments made after 30 June 2020.
Tag: Income Tax