The government Wednesday provided further relief to taxpayers by extending statutory and regulatory compliance deadlines, which were set to expire by June-end.
Extensions ranging between one month and three months have been granted on filing income tax returns, filing audit reports, making investments in savings instruments under income tax, issuing of Form 16 by companies to employers besides issuing notices or orders by authorities under various direct taxes and Benami Law.Deadline for linking PAN with Aadhaar has also been extended by three months.
The extensions have been granted “in order to provide further relief to the taxpayers for making various compliances,” the Central Board of Direct Taxes (CBDT) said in a notification dated June 24.
The extension will reduce hardship of taxpayers on one hand and will also give some more breathing time to tax officers, said experts, amid challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Covid-19.Original as well as revised income-tax (IT) returns for the FY 2018-19 or assessment year 2019-20 can be filed by July 31, 2020.
Returns of income required to be filed by July 31, and October 31, can be filed to November 30, since due date for IT return for the FY 2019-20 or assessment year 2020-21 has been extended to November 30, 2020. Therefore, tax audit report can be furnished by October 31, 2020.
Self-assessment tax with liability up to Rs 1 Lakh can be paid till November 30, but no extension has been granted to those having liability of over Rs 1 lakh, and delayed payment would attract the applicable rate of interest. “This will provide relief to small and middle class taxpayers,” experts said.Taxpayers can make investments in various savings instruments such as National Savings Certificate, Public Provident Fund, National Pension Scheme, mediclaim insurance schemes and donations for income tax rebate for FY 2019-20, till July 31. The earlier deadline was June 30.
Investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, has been extended by three months till September 30, thus making them eligible for claiming deductions from capital gains in the same time frame. The earlier deadline was June 30.
The date for commencement of operation for the SEZ units for claiming tax holiday has been extended to September 30, 2020 for the units which received necessary approval by March 31, 2020."The government realises that business need some more time to get back to normalcy. Even the tax offices are not working at their full strength and they may also need additional time to complete the assessments and other proceedings,” said Shailesh Kumar, partner, Nangia & Co LLP.
For authorities, deadlines for tax deducted at source (TDS) and tax collected at source (TCS) statements and certificates for FY 2019-20, have been extended till July 31 and August 15, respectively. The statements and certificates are needed by taxpayers to prepare IT returns.The date for passing of order or issuance of notice by the authorities and various compliances under various direct taxes and Benami Law which are required to be passed or issued by December 31, 2020 has been extended to March 31, 2021.
“Consequently, the date for linking of Aadhaar with PAN would also be extended to 31st March, 2021,” the CBDT clarified.
The reduced rate of interest of 9% for delayed payments of taxes, levies, etc. shall not be applicable for the payments made after June 30, 2020.
Completion or compliance of actions required to be completed - furnishing of declaration, passing of order, etc – under the Vivaad se Vishwas tax dispute resolution scheme have been allowed till December 31, 2020. Necessary legislative amendments shall be moved in due course, the government added.
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