Investments in a new house for claiming deduction under section 54 and 54G can be made up to September 30, 2020. The last date for Vivad se Vishwas has been extended to December 31, 2020

The Central Board of Direct Taxes (CBDT) recently extended the income tax saving investment time limit by a month till July 31, 2020. The extension has been given for making various investments for claiming deductions under the I-T Act, which includes Section 80C (insurance premium, PPF, NSC etc), 80D (mediclaim), 80G (donations) etc, for 2019-20. 

Note that the income tax department has issued refunds of close to Rs 62,361 crore to more than 20 lakh taxpayers during the last 3 months. Income tax refunds amounting to Rs. 23,453.57 crore have been issued in 19,07,853 cases to taxpayers and corporate tax refunds amounting to Rs 38,908.37 crore have been issued in 1,36,744 cases to taxpayers during this period, said CBDT.

Here are 5 key tax-related updates you need to know:

1. Tax-saving investment date for FY2019-20 extended up to July 31, 2020. You can claim income tax deductions up to Rs 1.5 lakh under the I-T Act till July 31, 2020. You can claim additional benefit of Rs 50,000 by investing in NPS. This additional Rs 50,000 tax deduction is in addition to the Rs 1.5 lakh allowed under Section 80CCD (1) for investment towards NPS. 

2. The date for filing TDS return for February and March has been extended to July 31, 2020. Also, the deduction for contribution to PF, PPF, NSC, donations made up to July 31, 2020, can be claimed in the return for 2020-21.

3. Investments in a new house for claiming deduction under section 54 and 54G can be made up to September 30, 2020. The last date for Vivad se Vishwas has been extended to December 31, 2020.

4. Under the new tax rates, there is zero tax for income up to Rs 2.5 lakh; 5% for income between Rs 2.5 lakh and up to Rs 5 lakh; 10% for income between Rs 5 lakh and up to Rs 7.5 lakh; 15% for income between Rs 7.5 lakh and up to Rs 10 lakh; 20% for income between Rs 10 lakh and up to Rs 12.5 lakh; 25% for income between Rs 12.5 lakh and up to Rs 15 lakh; 30% for income above Rs 15 lakh.

5. The Central Board of Direct Taxes (CBDT) has further extended time limits under direct tax and Benami laws last month. 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.