Covid relief: Govt extends deadlines for filing income tax returns, making investment

In view of the challenges faced by the taxpayers the Union Government has extended the deadline for filing income tax returns (ITR) for 2019-20 till November 30, 2020. It has also extended the time limit for linking biometric Aadhaar with PAN (permanent account number) till March 31, 2021.

New Delhi: In order to reduce the compliance burden during the Covid-19 pandemic, the Union government Wednesday extended most of the compliance deadlines for filing income tax returns, making investments and linking Aadhar with PAN number.

Three most important dates for filing three different categories of income tax returns - individual tax return, the income tax returns to be filed by those businesses and individuals who require tax audit and the tax return of companies, have been extended to November 30, 2020.

Similarly, the government has also extended the deadline for making investments under various tax saving provisions of the Income Tax Act from the existing June 30 to July 31 this year.

Earlier, finance minister Nirmala Sitharaman has extended the deadline from March 31 to June 30 in view of the difficulties faced by taxpayers due to the Covid-19 lockdown measures.

However, given the prevalent difficult condition, the government has extended the deadline for making investment to July 31.

It means those taxpayers who were not in a position to make necessary investment for tax saving purpose will now have one more month to make investment in various tax saving investments like PPF, NPS, LIC and other such instruments.

For those taxpayers who did not file their income tax return for FY 2018-19 (AY 2019-20), the new deadline for filing the original as well as revised Income Tax Return has been extended to July 31, 2020.

Though the government has extended the deadline for all three categories of income tax returns to November 30, 2020 but those who are required to file tax audit report, they will have to file their audit report by October 31.

Aadhaar PAN linking deadline further extended

In yet another compliance relief, the last date for linking Aadhaar with PAN has also been extended to March 31, 2021.

Last date for payment of self-assessed tax extended

The Central Board of Direct Taxes (CBDT) also extended the last date for deposit of self-assessed tax to November 30, 2020. The new date will be applicable for those taxpayers whose self-assessed tax liability will be up to Rs 1 lakh only.

The CBDT, however, clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers whose self-assessed tax liabilities will exceed 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 CBDT said.

No extension for availing concessional interest rates on late payments

Though the government approved several relaxations in compliance dates, it has decided not to extend the date for availing concessional interest rate of 9% on delayed payments of taxes and levies.

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

Relief on capital gains tax

The CBDT said the last date for making investment, construction or purchase of a property for claiming roll over benefit, deduction in respect of capital gains under the section 54 of the Income Tax Act has also been extended to September 30, 2020.

Relief for SEZ Units

In order to boost the country’s exports, the government also extended the date of commencement of operation for the SEZ units for claiming the deductions under section 10AA of the Income Tax Act. For the SEZ units which have received necessary approval by March end this year, the date of commencement of operation has been extended to September 30, 2020.

No further extension of Vivad Se Viswas Scheme

The CBDT clarified that there will be no further extension of direct tax dispute settlement scheme - Vivad Se Vishwas.

The Board said Finance Minister Nirmala Sitharman has already announced the extension of date for making payment without additional amount under the ‘Vivad Se Vishwas’ scheme as December 31, 2020.

“Necessary legislative amendments for it shall be moved in the due course of time,” the CBDT added.

(Article by Krishnanand Tripathi)