KSCAA has requested to Hon’ble Minister of Finance to extend various time limits under section 54 to 54GB of the Income-tax Act, 1961 (the Act). It is requested that various due dates for compliance and completion of specified actions under sections 54 to 54GB of the Act which falls between 20.03.2020 to 30.03.2021 (as against 20.03.2020 to 29.09.2020), should be permitted to be complied/completed by 31.03.2021 (as against 30.09.2020). Full Text of their representation is as follows:-
KARNATAKA STATE CHARTERED ACCOUNTANTS ASSOCIATION (R)
Date: 26 November 2020
Smt. Nirmala Sitharaman
Hon’ble Minister of Finance
Government of India
15, Safdarjung Road
New Delhi – 110001
Hon’ble Madam,
Subject: Request to extend various time limits under section 54 to 54GB of the Income-tax Act, 1961 (the Act)
The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in 1957. KSCAA is primarily formed for the welfare of Chartered Accountants and represents before various regulatory authorities to resolve the professional concerns faced by chartered accountants and the business community
We have written to your good selves many times populating issues and possible solutions. We have also been proactively involved in suggesting means and practical methodologies on the adoption and implementation of the policies.
This letter is in the backdrop of the Pandemic which necessitates relaxations to the beneficial provisions of the Income-tax Act, 1961 (‘the Act’), dealing with computation of income under the head ’Capital Gains’. Said amendments will also aid the Government’s efforts to boost the economic activity considering the massive potential for future growth in India within the real estate sector.
We appreciate the Government’s proactive efforts in extending various due dates under the Act, however, there are certain more compliance dates which have missed your attention. Through this representation we wish to bring it to your attention, for extension of various due date/benefits dealing with the exemption of ‘Capital Gains’ as contained in Sections 45 to 55A of the Act:
1. Basis for seeking an extension of the time limit
1.1. Beneficial provision:
Capital receipts are not taxed unless specifically provided. Provisions of section 45 of the Act deals with the taxation of income arising on ‘transfer’ of ‘capital asset’. As per Section 54 to 54B of the Act, taxpayers can reap the benefit of tax exemption on capital gains if these are invested in various schemes introduced by the Government;
Provisions of section 54 to 54GB of the Act are beneficial in nature, legislated with an intent to provide benefit to the taxpayer, and promote investment in chosen sectors of national importance. Therefore, the said provisions have been construed liberally, by the judicial bodies, for achieving the purpose for which it was incorporated in the statute.
To serve the intent behind such beneficial provisions, it is implored to bring about necessary legislative amendments to enable the taxpayers to avail such provisions by extending various timelines provided for such investment thereunder.
1.2. Extension of various other due dates under the provisions of the IT Act:
Considering the COVID-19 outbreak, the due dates under various statutes, including the Act, stands extended to a comfortable period to/beyond 31.12.2020.
It is relevant to note that various relaxations provided via Ordinance 2020 in terms of extension of statutory timelines, reduction of TDS and interest rates, waiver of penalty, etc. have now been incorporated in the Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020, and the due date stands extended.
However, the due dates with respect to making of investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purposes of claiming any deduction, exemption or allowance under the provisions contained in sections 54 to 54GB of the Act, which required completion/compliance and time-limit of which fell during the period from the 20.03.2020 to 29.09.2020, the same was required to be complied/completed by 30.09.2020. The above timelines, introduced by way of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 received the Honourable President’s assent on 29.09.2020.
It is noteworthy that there was a window of only one day for the assessee to undertake necessary compliances or specified actions under the provisions of section 54 to 54GB of the Act.
1.3. Unjust tax collection on account of the impossibility of performance during pandemic times:
Various due dates under multiple statues have been extended, clearly on account of the impossibility of performance due to pandemic times. There is no reason why such benefits should not be extended to the assessees facing the same challenge during the pandemic times.
There is no doubt that this pandemic has led to a cash crunch. The collection of taxes for this technical failure is fruitless, the damage it would cause is severe than the benefit to the public coffers. Considering the financial stringency faced by an assessee and the balance of convenience, which is clearly in favor of the assessees, it is implored to grant the benefit of extended timelines as a matter of level playing field.
1.4. Provides require impetus to sluggish real estate
Real estate, being one of the most important sectors in the economy, has been affected by the Pandemic. The Government’s announcement in Atmanirbhar Bharat Package 3 to increase harbour limits from 10% to 20% under section 43CA of the Act is a welcome move. We implore your goodself, to kindly consider an extension of various deadlines under section 54 to 54GB of the Act as the same would provide the necessary impetus to the real estate sector.
1.5. Karnataka Specific reason:
The State COVID positive cases and death toll were topping charts, making it 3rd state after Maharashtra and Tamil Nadu, to record deaths over the 10000 mark.
As of today (23.11.2020), the total number of positive cases stood at 8,73,046, next to the state of Maharashtra. Given this alarming rate of COVID spread, the assesses who took necessary precautions, by staying indoors and such other measures to contain the spread of the deadly virus, should not be punished with tax for a technical breach of provisions;
Additionally, in flood-like situations, landslides caused havoc in Karnataka. The State Government has estimated Rs. 8000 crore damage and has sought Center’s help. This situation has also crippled the activities and regular course of business/life. Expecting the assesses to comply with the provisions of the Act during such testing times would frustrate the provisions of the Act.
2. Our Representation / Prayers
Considering all the above difficulties, we are of the opinion that various due dates for compliance and completion of specified actions under sections 54 to 54GB of the Act which falls between 20.03.2020 to 30.03.2021 (as against 20.03.2020 to 29.09.2020), should be permitted to be complied/completed by 31.03.2021 (as against 30.09.2020).
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We humbly request you to kindly consider our submissions.
Yours sincerely,
For Karnataka State Chartered Accountants Association ®
| CA. Kumar S Jigajinni President | CA. Pramod Srihari Secretary | CA. Ganesh V Shandage Chairman Representation Committee |
Cc to:
1. Shri Anurag Thakur, Minister of State, Finance
2. Shri P C Mody, Chairman, CBDT
Download Representation in PDF Format
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Also Read:-
| S. No. | Date | Association | Particulars with link |
| 1 | 9 Dec 2020 | Western Maharashtra Tax Practitioners | Extend due dates of Tax Audit & ITR for AY 2020–21 |
| 2 | 12 Dec 2020 | Gujarat Sales Tax Bar | Extend GSTR-9/9A/9C due date for FY 2019-20 to 30/06/2021 |
| 3 | 12 Dec 2020 | Chamber of Tax Consultants | Extend due dates for Tax/Transfer Pricing Audit & ITR for AY 2020-21 |
| 4 | 12 Dec 2020 | Tax Practitioner’s Association, Indore | Extend due dates for filing Tax/TP Audit Report & ITR for AY 2020-21 |
| 5 | 14 Dec 2020 | AGFTC, ITBC and CAA | Extend due dates of Tax Audit Reports/ITR for A.Y. 2020-21 |
| 6 | 15 Dec 2020 | BCAS, CAA (Ahmedabad), CAA (Surat), KSCAA & LCAS | Request to Extend Due dates under GST & Income Tax |
| 7 | 15 Dec 2020 | Tax Bar Association, Bhilwara | Request to extend Due Date of filing of Tax Audit & ITR |
| 8 | 15 Dec 2020 | Direct Taxes Professionals’ Association, Kolkata | Extend due date of ITR & Tax Audit for AY 2020-21 |
| 9 | 16 Dec 2020 | Lucknow CA Tax Practioners’ Association | Extend Due date for filing Tax Audit Report & ITR |
| 10 | 16 Dec 2020 | Jamshedpur Chartered Accountants | Extend Due Date of filing Tax Audit & ITR to 31.03.2021 |
| 11 | 13 Dec 2020 | Direct Taxes Committee of ICAI | ICAI requests for extension of various Income-tax due dates |
| 12 | 10 Dec 2020 | Udaipur Tax Bar Association | Further extend due dates of ITR & Tax Audit Reports for FY 2019-20 |
| 13 | 15 Dec 2020 | CA Social Affiliation (CASA) | Extend Tax/TP Audit Report & ITR filing due date for AY 2020-21 |
| 14 | 19 Dec 2020 | Chartered Accountants Association, Jalandhar | Extend Due Dates for Tax Audit and Income Tax Return Filing |
| 15 | 19 Dec 2020 | All India Federation of Tax Practitioners (CZ) | Request for extension of due dates of Tax Audit Reports/ITR |
| 16 | 19 Dec 2020 | Vyyapaar Mandal Association, Nagore & AIMTPA | Extended Income Tax & GST Audit/Return/Compliance dates |
| 17 | 17 Dec 2020 | Emerging Businesses Chamber Of Commerce | Extend due dates for Income Tax Audit & Returns for AY 2020-21 |
| 18 | Dec 2020 | The Uttar Pradesh Tax Bar Association | Representation for Extension of time for Tax Audit & Return |
| 19 | 19 Dec 2020 | Tax Bar Association, Guwahati | Extend Tax Audit/ITR due dates for AY 2020-21 |
| 20 | 21 Dec 2020 | Tax Bar Association, Guwahati | Extend due dates of GSTR-9/ GSTR-9C for FY 2018-19 & 2019-20 |
| 21 | 17 Dec 2020 | Karnataka State Chartered Accountants Association | Waive Late Fees for Delayed Filing of GST Returns |
| 22 | 15 Dec 2020 | Direct Taxes Professionals’ Association | Extend Vivad Se Vishwas Scheme due date to 15.03.2021 |
| 23 | 15 Dec 2020 | Direct Taxes Professionals’ Association | Extend due date of AGM to 31st March 2021 |
| 24 | 15 Dec 2020 | Association of Tax payers & Professional, Agra | Extend due of GSTR-9, GSTR-9A & GSTR-9C |
| 25 | 08 Dec 2020 | Tax Bar Association (Regd), Allahabad | Extend due date of ITR/Tax Audit/GSTR-9/GSTR-9C |
| 26 | 08 Dec 2020 | Tax Consultant & Practitioners Association of Kerala | Extend due of ITR, GSTR 9, 9A & 9C for FY 2018-19 & 2019-20 |
| 27 | 21 Dec 2020 | Tax Bar Association, Guwahati | Extend CFSS 2020 & LLP Settlement Scheme 2020 to 31.03.2021 |
| 28 | 22 Dec 2020 | Income Tax Bar Association, Lucknow | Extend Time for filing ITR & Audit Report for A.Y 2020-21 |
| 28 | 22 Dec 2020 | 53 GST and Trade Associations | 53 Associations requests Extension for GSTR 9, 9A & 9C |
| 29 | 16 Dec 2020 | Chandigarh Chartered Accountants Taxation Association | Extend Income Tax & GST Return & Audit due dates |
| 30 | 22 Dec 2020 | Bhayander CA Social Group | Request to extend Due date of Annual GST Return & Audit |
| 31 | 22 Dec 2020 | Luminaires Accessories Components Manufacturers Association | Extend due dates for Tax Audit & Income Tax Return filing for AY 2020-21 |
| 32 | 22 Dec 2020 | All Professionals, Tax Payers and Stakeholders | Open letter for extension of Due dates under Income Tax and GST |
| 33 | 22 Dec 2020 | Punjab Accountants Association | Extend due date for filing ITR & Tax Audit Report- AY 2020-21 |
| 34 | 22 Dec 2020 | Bhayander CA Social Group | Extend Income Tax Audit & ITR Due dates for AY 2020-21 |
| 35 | 23 Dec 2020 | The Tax Bar Association, Odisha | Extend due dates of Audit Reports, ITRs, GST Returns, VSV Scheme |
| 36 | 21 Dec 2020 | Sales Tax Bar Association, Delhi | Extend Tax/TP Audit & ITR Due dates for AY 2020-21 |
| 37 | 23 Dec 2020 | Direct Taxes Professionals’ Association | Extend Income Tax, Companies & CGST Act compliance due dates |
| 38 | 24 Dec 2020 | ICSI | Extend due dates of CFSS, LLPSS, Charge Forms, Meetings |
| 39 | 24 Dec 2020 | All Odisha Tax Advocates Association | Extend due date for filing TAR/ITR/GSTR9/9A/9C |
| 40 | 25 Dec 2020 | BJP Economic Cell, Rajasthan | Extend Income Tax, GST, LLP, Company Law due dates |
| 41 | 23 Dec 2020 | Hyderabad Chartered Accountants’ Society | Extend Due date under GST and Income Tax |
| 42 | 22 Dec 2020 | A. P. Tax Bar Association, Vijayawada | Extend date of filing of GSTR 9, GSTR 9C and IT returns |
| 43 | 03 Jan 2021 | National Company Law Tribunal Bar Association | Representation for further extension of CFSS 2020 |
| 44 | 25 Nov 2020 | Merchants Chamber of Uttar Pradesh | Request for extension of Company Fresh Start Scheme 2020 |
| 45 | 04 Jan 2021 | Adv. Anuj Bhatt | Request to President to take Suo-Moto cognizance of GST Issues |
| 46 | 03 Jan 2021 | The Chamber of Tax Consultants | Extend Income-tax due dates with humane approach |
| 47 | 01 Jan 2021 | WMTPA | Highly Disappointing GST Audit Due Date Extension |
| 48 | 01 Jan 2021 | The A.P. Tax Bar Association, Vijayawada | Extend due date of Form GSTR 9 and 9C for year 2018-19 |
| 49 | 06 Jan 2021 | Chartered Accountants Association, Surat. | |
| 50 | 06 Jan 2021 | ICAI | ICAI request for further extension of TAR/ITR due dates |
| 51 | 08 Jan 2021 | All India Federation of Tax Practitioners | AIFTP request for further extension of Income-tax due dates |
| 52 | 08 Jan 2021 | Direct Taxes Professionals’ Association | Further extend Income Tax Return & Audit due dates |
| 53 | 9 Jan 2021 | Calcutta Citizens’ Initiative | Extend due dates of TAR/ITRs/VSV Scheme for AY 2020-21 |
| 54 | 8 Jan 2021 | Digvijaya Singh, Member of Parliament, (Rajya Sabha) | Extend due dates under CA 2013, CFSS & LLPS Scheme 2020 |
| 55 | 2 Jan 2021 | Karnataka State Chartered Accountants Association | |
| 55 | 26 Nov 2020 | Karnataka State Chartered Accountants Association |
Request to extend time limits under section 54 to 54GB |
| 57 | 8 Jan 2021 | All Gujarat Federation of Tax Consultants Vs Union of India (Gujarat High Court) | |
| 58 | 10 Jan 2021 | All India Joint Representation Committee For GST An alliance of 24 GST and Trade Associations | Extend due dates of GST, Income Tax & ROC Compliances |
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