Postponement of Deadline Fine Income Returns Till September 30 Instead of July 31,2020!

1. Introduction:

The Central Board of Direct Taxes has once again, relieved the taxpayers from going into an unnecessary hassle for submitting their ITR returns and saving them from paying penal charges unnecessarily.

On July 29, the CBDT has formally extended the date to file the original as well as the belated ITR for the financial year 2018-19 from July 30 to September 30, 2020, which was earlier announced to be July 31.

Previously this year, the deadline to file the belated income –tax return (ITR) for FY 2018-19 was extended twice. First, from the original deadline of March 31, 2020, to June 30 and later till July 31, 2020.

It is worth mentioning here, that in case an individual does not file the due belated return till Sept 30, he/she is not able to file the income tax return for financial 2018-19.  Also, one can file a revised return for FY 2018-19 within this deadline.

2. Power/Authority to take Actions to CBDT:

Acknowledging, the fact that the assesses were facing difficulties to submit ITR returns, the CBDT applied its authority granted under the applicable Taxation and other Laws (Relaxation of Certain Provisions) Ordinance effectuated in March 2020, to grant additional time limit in addition to prescribed limits in view of the difficulties during the pandemic and for the ultimate purpose of improving compliance of the taxation policies.

The notification also indicates that for the purposes of the second proviso of section 207 of the Income-Tax Act 1961, taxes paid by an individual resident in India as provided under (2) of section 207 of the Income-Tax Act, 1961, the taxes paid by him under section 140A of the Act within the prescribed time period shall be deemed to be an advance tax.

Accordingly, such senior citizens not having any business or professional income need not pay any advance tax, in accordance with section 207 of the Act for the assessment year 2020-21, assuming the original date July 31, 2020.

3. Relief for other Acts under Income Tax 1961:

Further, the Government has also extended several deadlines for fulfilling various statutory and regulatory compliance requirements further in view of the challenges faced by the taxpayers due to the outbreak of the pandemic.

Accordingly, the date of making various investments and payment for claiming deductions under Chapter VI-A of the Act including section 80C (for investments in LIC, PPF, NSC), 80D (Mediclaim), 80G (Donations) have also been stretched in the interest of the taxpayers of the country. Further, the deadlines for the purposes of making investments making investments, construction, purchases for claiming rollover benefit, and deductions in respect of capital gains have also been extended till September 30, 2020.

Consequently, in cases where there is a  shortfall in tax paid up to Rs.1 Lakh as on till April 1, 2020, it could be submitted up to 1 lakh as on April 2020, if it paid before filling return of income on or before November 30, 2020, and no penal charges will be levied under section 234A of the Act.

However, penal charges may apply in cases where the self-assessment tax is paid after July 31, 2020, which results in a shortage to Rupees 1 Lakh or more, and later the ITR return is submitted till Nov 30, 2020.

4. Conclusion:

The notification has arrived at a time when the number of infected patients has outreached 1.4 million in various parts of the country, and there are more or fewer restrictions in movement. Thus, it will certainly have the effect of giving them a sigh of relief in meeting statutory and regulatory compliance requirements across sectors due to the outbreak of COVID-19.

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