The outbreak of COVID-19 pandemic and the nationwide lockdown has flipped our lives upside down. The nation’s economy is not spared too. Due to the lack of cash flow in the economy, the government had to defer a set of due dates for tax payment during the early days of the outbreak of the pandemic in India.
Since the situation has not become competent even after the designated three-month term, the Central Board of Direct Taxes (CBDT) and the Central Government have decided to push the due dates for a few events further. We know that you will be confused about all the extended due dates stated in the notification.
Also Read: Summary of CBIC notifications dated 24th June 2020 on GST extensions
To ease your minds, we have a list of the events that have received an extension to due dates. Take a look at this.
- Original as well as revised income tax returns filing for the financial year 2018-2019 is extended to 31 July 2020.
- Income tax return filing due date for the financial year 2019-2020 is extended until 30 November 2020.
- The last date for furnishing tax audit report for the financial year 2019-2020 is extended until 31 October 2020.
- The self-assessment tax payment due date for small and middle-class taxpayers whose self-assessment tax liability is within Rs.1 lakh is extended to 30 November 2020. However, there is no due date extension for those taxpayers whose self-assessment tax liability exceeds Rs.1 lakh. That is you must pay the self-assessment tax by the due date specified in the Income Tax Act. Any delayed payment will attract interest.
- The due date for making tax-saving investments under Section 80C, 80D, 80G, and others, for the financial year 2019-2020, is further extended to 31 July 2020.
- The date for claiming income tax deductions through investments and construction/purchase of residential property to get roll-over benefits or capital gains is further extended to 30 September 2020.
- The operations commencement date for the SEZ units for claiming an income tax deduction, under Section 10AA of the Income Tax Act, is extended to 30 September 2020. You must know that the extension is valid only for the units that received the necessary approval by 31 March 2020.
- The date for furnishing and issuing the TDS/TCS statements associated with FY2019-2020 is extended to 31 July 2020 and 15 August 2020 respectively.
- The last date for linking Aadhaar with PAN is extended to 31 March 2021.
- The passing of order or issuance of notice by the authorities and compliances with various Direct Taxes & Benami Law had to be issued/passed by 31 December 2020 initially. Now, it is extended to 31 March 2021.
Along with extending the due dates for these activities, the government also slashed the TDS/TCS rate for non-salary payments to residents by 25% for the following months of the fiscal year. Also, the rate of interest for delayed tax payments and levies, which was reduced to half, i.e. 9%, won’t be applicable for the payments made after 30 June 2020.
For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in
