The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Bill, 2020 (Bill)  is introduced in Lok Sabha on 18th September 2020 and was having lot of Drafting mistakes fr which it subsequently issued Errata. This bill was passed in Lok Sabha on 19th September 2020 and it replaces Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020, promulgated in March, 2020.

The ambiguity of language of this Bill created an impression that dates for filing ITRs etc has been extended. However that is not true.

Due Dates

The bill starts from third proviso of section 3 which is as under:
“Provided also that where the specified Act is the Income-tax Act, 1961 and the compliance relates to—
(i) furnishing of return under section 139 thereof, for the assessment year commencing on the—
(a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted;
(b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of November, 2020” had been substituted;
(vii) furnishing of report of audit under any provision thereof for the assessment year commencing on the 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st day of October, 2020” had been substituted:“
Now after reading the above amendments many believed for once that due date have been extended to 31 March 2021 for all income tax returns and tax audit reports.
However, that’s not true. If one reads the above bill carefully the first sub section extends all the due date between 20 March 2020 to 31 December 2020 to 31 March 2021 whereas the next proviso clarifies that for various due dates shall not extend to 31 March 2021 where it will extend to some specific date. For eg:
1. Due date for return of A.Y. 2019-20 will be 30 September 2020 instead of 31 March 2021.
 
2. Due date for return of A.Y. 2020-21 u/s 139(1) will be 30 November 2020 instead of 31 March 2021.
 
3. Due date for tax audit report for A.Y. 2020-21 will be 31 October 2020 instead of 31 March 2021. 

Thus there is no extension as on 19 September 2020 for ITR filing or Tax Audit Due date.

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CA ROHIT KAPOOR | Contact: +91 9899218725 | Email: connectwithcarohitkapoor@gmail.com

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10 Comments

  1. Ravi Shrivastava says:

    Respected Finance minister please increase TAR due date for assessment year 20-21 we are awaiting for please take a quick action on this regard we are not in position to submit TAR frequently due to CARONA many people are suffering with this disease so please consider

  2. Hardik says:

    RIDICULOUS!!! Don’t know when FY 2020 Tax Audit Date will be extended. MCA/ROC has already extended Date for calling A.G.M. till 31.12.2020. CBDT should give relief to companies and should announce extension of Tax Audit Date till 31.12.2020 on urgent basis. Covid 19 Cases are increasing day by day and don’t know why and for what reason Tax Audit Due Date is not getting extended. It just increases stress and anxiety due to delayed announcement.

  3. sanjeev goel says:

    This ambiguous bill is only increasing the stress of assessee/professional. rather than it a stress bill not that of relaxation. We expected that all dates would have been extended till 31 December 2020. But now shocked very much for the date of tax audit. Honourable FM should first clarify the ambiguous part of the bill and should extend the date so that once should scheduled its workload in free environment .It should not be like that sometime ups and than down , again move fast ahead than back immediately.

  4. DEEPAK SONI says:

    NIRMALA SITHARAMAN AND HER TEAM IN THE FINANCE MINISTRY SHALL BE REMEMBERED IN THE HISTORY OF INDIAN AS MOST ARROGANT AND IGNORANT AND RUDE TEAM.SEVERAL GENERATIONS OF THE PEOPLE CONNECTED WITH THE INCOME TAX SHALL NEVER PARDON THEM AND SHALL COMPARE WITH APPROACH OF CRUEL MOGHUL KINGS.

  5. SHESHGIRI JOSHI says:

    DON’T MAKE CONFECTION FOR DUE DATE EXTENSION AND IT SHOULD BE VERY CLEAR TO UNDER STAND ALL THE PROFESSIONAL BROTHERS ARE BUSY IN WORK THEY SHOULD NOT DRAWN TO OTHER SIDE AND DON’T PUT PRESSURE ON THEM THEY ARE ALREADY IN PRESSURE

  6. CA ANCHAL VERMA says:

    If there is no such extension, then what’s the point of passing such bill when such bill was brought in to provide relief to tax payers for compliance ??

    In my opinion, there are drafting errors for which necessary clarification may be provided by CBDT.

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