Important Extensions for Tax Payments for 2020-21

It could be assumed from the current scenario created by the COVID-19 has affected business functioning and revenues and it’s time for the Government of India and its citizen to come together and help each other.  Understanding the situation of the public, a notification has been issued by the Central Board of Direct Taxes (CBDT) under the guidance of the Ministry of Finance regarding providing a further extension to various tax deadlines for payments under the Act saving them from committing default under the Act.

In a row to provide a huge relief to its taxpayers, now the due date for the income tax return for FY 2019-20 (AY 2020-21) now stands extended to November 30, 2020. Accordingly, the income tax returns that were required to be filed by July 31 and October 31 could be submitted till November 30 of this year.

Further, the Central Board of Direct Taxation (CBDT) has stretched the various time limits under direct tax and 'Benami' laws. The statement issued contains the following announcements-

a.     The salaried individuals and small/medium taxpayers across India can submit their ITRs till November 30, 2020, instead of July 31, 2020.

b.     Small and medium taxpayers having a self- assessed tax liability up to Rs. 1lakh can also file their IT returns by November 30.

c.     The cut-off date for linking PAN with Aadhaar has been further elongated till March 31, 2021, in the benefit of public interest.

d.    Taxpayers intending to declare their investment declarations now have the opportunity to provide for tax deductions under the exemptions till July 31 for Assessment Year (AY) 2019-20.

e.    Extension of the time-limit for submission of the original as well as revised income for FY2018-19 (AY 2019-20) till July 31, 2020.

f.    The filing date for the tax audit report has also been extended to October 31, 2020.

g.    The time limit for claiming deductions allowed after the commencement of operations in Special Economic Zone (SEZ) units or for submitting the Tax Deducted at Source (TDS)/ Tax Collected at Source (TCS) statements and the related issue of certificates has also been covered into the time-limit of extension.

h.    Nevertheless, no further extension in the time-limit for the payments of tax liability has been announced in the case where the assessee has a self- assessed liability exceeding Rs 1 lakh. 

Author:

eStartIndia Team