Income tax relief: Due to the outbreak of novel coronavirus challenge faced by the taxpayers in meeting statuary and regulatory compliance requirement, the Central Board of Direct Taxes (CBDT) on Wednesday extended the deadline for filing income tax returns (ITR) for 2018-19 fiscal by a month till July 31, 2020, the salient features of relief are as under.
- The time for filing if original as well as revised income tax returns for FY 2018 – 19 (The assessment year 2019 – 2020) has been extended to 31st July 2020.
- Due date filing ITR for the financial year 2018 -19 has been extended to 31st July 2020.
- In order to provide relief to small and middle-class taxpayers, the date for payment of self-assessment tax in the case of taxpayers whose self-assessment tax liability is up to ₹ 1 lakh has also been extended till 30th November 2020. However, it is clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers having liability above ₹ 1 lakh. In such case self-assessment tax shall be payable by the due dates specified in income tax Act, 1961 (IT Act) and delayed payment would attract interest under section 234A of the IT Act.
- The date for making various investments/payments for claiming deduction under chapter VI A B of the IT Act which includes section 80c (LIC, PPE, NSC, etc.), 80D (mediclaim),80G (Donations), etc. has also been further extended to 31st July 2020. Hence the investment payment can be made up to 31st July 2020 for claiming the declaration under these section for FY 2019- 20
- The date for making investment/construction/purchase for claiming rollover benefit /deduction in respect of capital gains (Sections 54 to 54G) of the IT Act has also been further extended to 30th September 2020. Therefore, the investment/construction/purchase made up to 30th September 2020 shall be eligible for claiming deduction from capital gains.
- The date for commencement of operation for the SE2 emits for claiming deduction under section 10AA of the IT Act has also been further extended to 30th September 2020 for the emits which received necessary approval by 31st march 2020.
- The furnishing of TDS/TCS statements and insurance of TDS/TCS certificates being the prerequisite for enabling the taxpayers to prepare their return of income for FY 2019- 29, the date for furnishing of TDS/TCS statements and issuance of TDS/TCS certificates pertaining to the FY 2019-20 has been extended to 31st July 2020 and 15th August 2020 respectively.
- The date for the passing of order or issuance of notice by the authorities and various companies under various Direct taxes & Benami law which are required to be passed/issued made by 31st march 2021 consequently the date for linking of Aadhar with PAN would also be extended to 31st March 2021.
- The reduced rate of interest of 9 per cent for delayed payments of taxes levies etc. Specified in the ordinance shall not be applicable for the payments made after 30th June 2020.
The Finance Minister has already announced the extension of date of making payment without additional charge under the “Vivid sees Vishwas” scheme to 31st December 2020, necessary legislative amendments for which shall be brought in due course of time. The said notification has extended the date for the competition or compliance of the actions which are required to be completed under the scheme by 30th December 2020 to 31st December 2020, Therefore the date of furnishing of declaration passing of the order, etc. Under the scheme extended to 31st December 2020.
Deferment of the implementation of a new procedure for approval/registration/notification of certain entities under section 10 (25c), 12 AA, 55 and 80G of IT Act has already been announced vide press release dated 8th may 2020 from 1st June 2020 to 1st October 2020 it is clarified that the old procedure i.e. pre-amended procedure shall continue to apply during the period from 1st June 2020 to 30th September 2020 necessary legislative amendment in this shall be named in due course of time.
The Finance Minister has already announced a reduced rate of TDS after specified nonsalaried payments to residents and specified TCS rates by 25 per cent for the period from 14th May 2020 to 31st March 2021. The announcement was also followed by the press release dated 13th May 2020. the necessary legislative amendments in this regard shall be moved in due course of time.