Extension of time limits for income tax returns

Extension of time limits for income tax returns In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances due t

Extension of time limits for income tax returns

In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances due to the outbreak of COVID-19, the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (‘the Ordinance’) on 31st March 2020 which, inter alia, extended various time limits. The Ordinance has since been replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act.

The Government issued a Notification on 24th June 2020 under the Ordinance which, inter alia, extended the due date for all Income Tax Returns for the FY 2019-20 (AY 2020-21) to 30th November, 2020. Hence, the returns of income which were required to be filed by 31st July 2020 and 31st October 2020 were required to be filed by 30th November 2020. Consequently, the date for furnishing various audit reports including tax audit reports under the Income-tax Act, 1961 (the Act) was also extended to 31st October 2020.

In order to provide more time to taxpayers for furnishing of Income Tax Returns, the due date was further extended vide notification No 88/2020/F. No. 370142/35/2020-TPL dated 29th October 2020:

• (A) The due date for furnishing of Income Tax Returns for the taxpayers (including their partners) who are required to get their accounts audited [for whom the due date (i.e. before the said extension) as per the Act was 31st October 2020] was extended to 31st January 2021.
• (B) The due date for furnishing of Income Tax Returns for the taxpayers who are required to furnish reports in respect of international/specified domestic transactions [for whom the due date (i.e. before the said extension) as per the Act was 30th November 2020] was extended to 31st January 2021.
• (C) The due date for furnishing Income Tax Returns for the other taxpayers [for whom the due date (i.e. before the said extension) as per the Act was 31st July 2020] was extended to 31st December 2020.
• (D) Consequently, the date for furnishing various audit reports under the Act including tax audit reports and reports in respect of international/specified domestic transactions was also extended to 31st December 2020.

Considering the problems being faced by the taxpayers, it has been decided to provide further time to the taxpayers for furnishing Income Tax Returns, tax audit reports and declarations under the Vivad Se Vishwas Scheme. Further, in order to provide more time for taxpayers to comply with various ongoing proceedings, the dates of completion of proceedings under various Direct Taxes & Benami Acts have also been extended. These extensions are as under:

• a. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers (including their partners) who are required to get their accounts audited and companies [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 31st October 2020 and which was extended to 30th November 2020 and then to 31st January 2021] has been further extended to 15th February 2021.
• b. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers who are required to furnish reports in respect of international/specified domestic transactions [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 30th November 2020 and which was extended to 31st January 2021] has been further extended to 15th February 2021.
• c. The due date for furnishing Income Tax Returns for the Assessment Year 2020-21 for the other taxpayers [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act, 1961, was 31st July 2020 and which was extended to 30th November 2020 and then to 31st December 2020] has been further extended to 10th January 2021.
• d.  The date for furnishing of various audit reports under the Act including tax audit reports and reports in respect of international/specified domestic transactions for the Assessment Year 2020-21 has been further extended to 15th January 2021.
• e. The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31st January 2021 from 31st December 2020.
• f. The date for passing of orders under the Vivad Se Vishwas Scheme, which is required to be passed by 30th January 2021 has been extended to 31st January 2021.
• g. The date for passing of order or issuance of notice by the authorities under the Direct Taxes & Benami Acts which are required to be passed/ issued/ made by 30th March 2021 has also been extended to 31st March 2021.
  

Further, in order to provide relief for the third time to small and middle-class taxpayers in the matter of payment of self-assessment tax, the due date for payment of self-assessment tax date is hereby again extended. Accordingly, the due date for payment of self-assessment tax for taxpayers whose self-assessment tax liability is up to Rs. 1 lakh has been extended to 15th February 2021 for the taxpayers mentioned in para 4(a) and para 4(b) and to 10th January 2021 for the taxpayers mentioned in para 4(c).

The Government has also extended the due date for furnishing of annual returns under section 44 of the Central Goods and Services Tax Act, 2017 for the financial year 2019-20 from 31st December 2020 to 28th February 2021.

The necessary notifications in this regard shall be issued in due course.