Covid-19 relief for taxpayers: Govt extends time limit of tax compliances

Accordingly, 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 while the due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to November 30, 2020.

A finance ministry statement said that extension has been done in reference to the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 brought by the government on March 31. The ordinance had extended various time limits for meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of coronavirus (COVID-19) to provide relief to taxpayers.

With regard to filing income tax return for FY20, the returns of income which were required to be filed by the July 31 and October31, 2020 can now be filed till November 30. Consequently, the date for furnishing tax audit report has also been extended to October, 31, 2020.

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.

However, the CBDT notification has 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.

Providing further relief to the salaried whose investment in tax saving instruments have also been delayed due to COVID-19, the finance ministry has now allowed that payments for claiming deduction under Section 80 C, 80 D, 80 G etc for 2019-20 can be done till July 31.

The notification has also extended 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 to September 30. Therefore, the investment/ construction/ purchase made up to September 30 shall be eligible for claiming deduction from capital gains.

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 31st March, 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. In this regard, taxpayers have now been allowed to comply by extended date of 31st July, 2020 and 15th August, 2020, respectively.

In addition, the date for passing of order or issuance of notice by the authorities and various compliances under various direct taxes and Benami Law which are required to be passed/ issued/ made by 31st December, 2020 has been extended to 31st March, 2021.

Consequently, the date for linking of Aadhaar with PAN would also be extended to 31st March, 2021, the finance ministry statement said.

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

It may be noted that the Finance Minister has already announced extension of date for making payment without additional amount under the "Vivad Se Vishwas" scheme to December 31, 2020 and necessary legislative amendments for which shall be moved in the due course of time. The CBDT Notification has extended the date for the completion or compliance of the actions which are required to be completed under the Scheme by December 30 to December 31, 2020. Therefore, the date of furnishing of declaration, passing of order, etc., under the Scheme stand extended to December 31, 2020.

Also, deferment of the implementation of new procedure for approval/ registration/ notification of certain entities u/s 10(23C), 12AA, 35 and 80G of the IT Act has already been extended from 1st June, 2020 to 1st October, 2020.

It has now been 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 amendments in this regard shall be moved in the due course of time.

CBDT said that the Finance Minister has already announced reduced rate of TDS for specified non-salaried payments to residents and specified TCS rates by 25 per cent for the period from May 14, 2020 to March 31, 2021. The necessary legislative amendments in this regard shall be moved in due course of time.