Amid Covid-19 pandemic, Centre extends time limits for tax compliances

The Centre on Wednesday gave further relief to taxpayers extending various time limits of compliances due to the Covid-19 pandemic.

The time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) has been extended to July 31, 2020, the Central Board of Direct Taxes (CBDT) said in a statement.

The due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to November 30, 2020. ”Hence, the returns of income which are required to be filed by July 31, 2020 and October 31, 2020 can be filed by November 30, 2020. Consequently, the date for furnishing tax audit report has also been extended to October 31, 2020,” it said.

The CBDT also said that in order to provide relief to small and middle class taxpayers, the date for payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is up to Rs. 1 Lakh has also been extended to November 30, 2020.

The CBDT clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. 1 lakh.

“In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income Tax Act (IT Act) and delayed payment would attract interest under section 234A of the IT Act,” the statement said.

The date for making various investment/ payment for claiming deduction under Chapter-VIA-B of the IT Act which includes section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations) etc. has also been further extended to July 31, 2020. Hence the investment/ payment can be made up to July 31, 2020 for claiming the deduction under these sections for FY 2019-20.

The date for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been further extended to September 30, 2020.

“Therefore, the investment/ construction/ purchase made up to September 30, 2020 shall be eligible for claiming deduction from capital gains,” the CBDT said.

The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also been further extended to September 30, 2020 for the units which received necessary approval by March 31, 2020.

The furnishing of the TDS/ TCS statements and issuance of TDS/ TCS certificates are the prerequisite for enabling the taxpayers to prepare their return of income for FY 2019-20, the date for furnishing of TDS/ TCS statement and issuance of TDS/ TCS certificate pertaining to the FY 2019-20 has been extended only to July 31, 2020 and August 15, 2020 respectively.

The date for passing of order or issuance of notice by the authorities and various compliances under various direct taxes & Benami Law which are required to be passed/ issued/ made by December 31, 2020 has been extended to March 31, 2021. Consequently, the date for linking of Aadhaar with PAN would also be extended to March 31, 2021.

The reduced rate of interest of 9% for delayed payments of taxes, levies, etc. specified in the Ordinance shall not be applicable for the payments made after June 30, 2020.

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