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In a press conference dated May 13, 2020, the government has announced an income tax due date extension in India for FY 2019-20. Now the income tax return filing due date has been extended from July 31, 2020, to November 30, 2020[1].
Finance Minister Nirmala Sitharaman expressed during a press briefing, “Income tax deadline for all income-tax returns for FY 2019-20 will be provided with an income tax due date extension from 31stJuly 2020, and 31stOctober 2020, to 30thNovember 2020. Also, tax audits will be moved from 30thSeptember 2020, to 31stOctober 2020.”
Income Tax Due Date Extension for Tax Saving & Belated ITR
As per the latest notification issues by the Government of India dated June 24, 2020 (effective from June 30, 2020), the income tax due date is further extended. The Income Tax Due Date Extension is for filing belated ITR FY 2018-19, tax savings and ITR filing for FY 2019-20 and tax audit. Following are the revised due dates after the recent income tax due date extension notification:
|
Original Due Date |
Revised Due Date |
Belated ITRs for FY 2018-19 & AY 2019-20 |
30th June, 2020 |
31st July, 2020 |
Tax Saving under section 80C, 80D, 80G etc. |
30th June, 2020 |
31st July, 2020 |
ITR Filing for FY 2019-20 & AY 2020-21 |
31st July, 2020/31st October, 2020 |
30th November, 2020 |
Tax Audit |
30th September, 2020 |
31st October, 2020 |
Investments Articles
Before we talk about, ‘What Income Tax Due Date Extension Means For The Taxpayer?’ Let us first understand the following:
- Who should file for Income Tax Returns (ITR)?
- What is the regular income tax return filing due date?
- What is the new income tax due date extension?
- FAQ’s on the income tax due date extension
Before we talk about, ‘What Income Tax Due Date Extension Means For The Taxpayer?’ Let us first understand the following:
- Who should file for Income Tax Returns (ITR)?
- What is the regular income tax return filing due date?
- What is the new income tax due date extension?
- FAQ’s on the income tax due date extension
Who should file for Income Tax Returns (ITR)?
Under section 139 of the Income Tax Act, 1961, every individual needs to file income tax returns. The income tax return is a declaration of the income of an individual who lists all sources of revenue and taxes charged on the income. This also states deductions claimed by an individual, if any. The Income Tax Department reviews the income tax return to detect irregularities(fraud) or revenue misstatements.
Also Read: Reasons Why You Need to File ITR on Time
The income tax returns differ for each individual and entity, such as ITR-1 is for individuals and Hindu Undivided Family (HUFs)with income other than corporate and business profits, whereas ITR-4 is for companies, the Association of Persons, and the Body of Individuals. Even under the new income tax due date extension, every individual needs to list their income source and revenue while they file for ITR.
With or without the income tax due date extension, individuals and entities must file ITR every year. It is considered to be the duty and responsibility of an individual as an Indian citizen. It highlights the expenses alongside the revenues and therefore helps to claim refunds, if any. Moreover, income tax returns can help secure loans or credit cards, easily and efficiently. It helps to file a revised return if necessary. Adjustments of deficits(losses) of the prior year can be easily claimed, provided the returns are correctly filed. Any kind of failure to file an income tax return or to pay tax can result in penalties.
Note: Given the current income tax return due date extension made available by the government, the new income tax return filing due date is now 30thNovember 2020 for FY 2019-20[2]
See how the latest budget impacts your tax calculation. Updated as per latest budget on 1 February, 2020. No deductions will be allowed under the new tax regime.
What is the regular income tax return filing due date, apart from the income tax due date extension?
Without the present income tax due date extension provided by the centre, here is an insight into understanding regular aspects of the Income Tax Act, Section 139 – Income tax deadline and Income tax due date.
The regular income tax return filing due date [3], without the income tax due date extension provided for FY 2019-2020, are as followed:
1. Accounts of Individual/HUF need an audit; it also could be a partner of a firm whose accounts need to get audited.
Without the present income tax due date extension provided by the centre, here is an insight into understanding regular aspects of the Income Tax Act, Section 139 – Income tax deadline and Income tax due date.
The regular income tax return filing due date [3], without the income tax due date extension provided for FY 2019-2020, are as followed:
1. Accounts of Individual/HUF need an audit; it also could be a partner of a firm whose accounts need to get audited.
Income Tax Due Date: 30thSeptember of the Assessment Year (AY)
2. Any person owning international transactions or stipulated domestic transactions is required to provide a report in Form No. 3CEB.
Income Tax Due Deadline: 30thNovember of the Assessment Year (AY)
3. In all other cases
Income Tax Return Deadline: 31stJuly of the Assessment Year (AY)
Moreover, Section 139 of the Income Tax Act, 1961 and its guidelines decide the income tax return filing due dates. The Central Government has the authority to change the income tax return filing due date by releasing a timely notice declaring income tax due date extension period.
Update: It is the same way that on 13th May 2020, the Finance Minister of India as an economic relief plan enabled income tax due date extension from 31st July 2020 to 30th November 2020.
2 Any person owning international transactions or stipulated domestic transactions is required to provide a report in Form No. 3CEB.
Income Tax Due Deadline: 30thNovember of the Assessment Year (AY)
3. In all other cases
Income Tax Return Deadline: 31stJuly of the Assessment Year (AY)
Moreover, Section 139 of the Income Tax Act, 1961 and its guidelines decide the income tax return filing due dates. The Central Government has the authority to change the income tax return filing due date by releasing a timely notice declaring income tax due date extension period.
Update: It is the same way that on 13th May 2020, the Finance Minister of India as an economic relief plan enabled income tax due date extension from 31st July 2020 to 30th November 2020.
What are the different parts of the income tax return due date?
The income tax return filing due date [4] can be separated into two divisions:
First, in normal circumstances, the dates set out above are the income tax return filing due date, but the returns may be filed with interest even after the ITR filing deadline.
Also Read: How to E-file Income Tax Return?
Second, the last date of filing income tax return is one year from the end of the relevant assessment year. For example, the income tax due date for FY 2014-15 is 31st July 2016, but the ITR can be filed until 31st March 2017 – as the assessment year (AY) of a particular year (2014-2015) ends in the coming year (March 31, 2017).
Note: The general guidelines differ from the current government economic relief package provided, where an income tax due date extension has been made for the citizens for FY 2019-20.
What Is the New Income Tax Due Date Extension?
In the declaration of the economic relief package, Finance Minister Nirmala Sitharaman stated [5] that the centre hadcontoured an income tax due date extension for the year 2019-20. Additionally, the tax audit date that falls on 30th September 2020 has also been moved by a month to October 31, 2020. This income tax due date extension is a part of the INR 20 lakh crores relief package facilitated by the central government. Alongside the provision of income tax return due date extension, many direct-taxes associated relief procedures have been announced as well.
Also Read: Types of Taxes in India
In the declaration of the economic relief package, Finance Minister Nirmala Sitharaman stated [5] that the centre hadcontoured an income tax due date extension for the year 2019-20. Additionally, the tax audit date that falls on 30th September 2020 has also been moved by a month to October 31, 2020. This income tax due date extension is a part of the INR 20 lakh crores relief package facilitated by the central government. Alongside the provision of income tax return due date extension, many direct-taxes associated relief procedures have been announced as well.
Also Read: Types of Taxes in India
What Are The Direct Taxes Relief Measures That Fall Under The Income Tax Due Date Extension?
As a part of the economic relief measures, besides the income tax due date extension, the centre has reduced applicable TDS rates for non-salaried payments. The announcement states that to enable taxpayers with more funds, TDS for non-salaried payments made to any resident, including the TCS rates for stated receipts, will be reduced by 25%. Both TDS and TCS reduced rates will remain valid until March 31, 2021.
Besides, under the ‘Vivad Se Vishwas’ scheme, the date of final payments (without any interests or charges) has been extended to 21st December 2020 – this also is the second extension of this scheme. Earlier, on March 24, 2020, the government in a press conference had announced the ‘Vivad Se Vishwas’ scheme to June 30, 2020.
Furthermore, the central government has also reduced the Employees Provident Fund (EPF) contributions for private companies for three months –from 12% to 10%. Whereas, the state-run companies will enjoy no such reductions.
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FAQ’s on Income Tax Due Date Extension
Q. What is the new income tax due date extension period?
A. As declared by the Finance Minister of India, the present income tax due date extension has been made to November 30, 2020. Additionally, the audit dates have been moved from September 30, 2020, to October 31, 2020.
Q. What does the income tax due date extension entail?
A. Under the income tax due date extension, instead of filing ITR before July 31, 2020, now the ITR can be filed till November 30, 2020. Whereas the audit dates for September 30, 2020, has been moved to October 31, 2020.
Who are all provided with the income tax due date extension?
Everyone that generally file their income tax returns needs to do so for FY 2019-2020. Due to the income tax due date extension, just the dates have been moved back to provide relief to taxpayers. The announcement of income tax due date extension provides citizens more time to file their ITR properly. The new income tax due date extension does not, in any way, make an exemption for any individual not to file their ITR.
Who are all provided with the income tax due date extension?
Everyone that generally file their income tax returns needs to do so for FY 2019-2020. Due to the income tax due date extension, just the dates have been moved back to provide relief to taxpayers. The announcement of income tax due date extension provides citizens more time to file their ITR properly. The new income tax due date extension does not, in any way, make an exemption for any individual not to file their ITR.
Q. What other measures have been provided beside the income tax due date extension?
A. Besides the audit and income tax due date extension, the centre has presented relief measures for direct taxes, including a 25% reduction in TDS and TCS rates. The purpose of both the income tax due date extension and relief on direct taxes is to ensure more funds for the taxpayers.
Q. How long is the income tax due date extension valid?
A. The contoured income tax due date extension has pushed the income tax deadline to November 30, 2020.
Q. Is the income tax due date extension official?
A. Yes, the Finance Minister of India has officially announced the income tax due date extension, alongside other relief measures.
Sources:
[1]https://economictimes.indiatimes.com/wealth/tax/income-tax-return-for-fy-2019-20-deadline-extended-to-nov-30-2020/articleshow/75717585.cms?from=mdr
[2]https://www.financialexpress.com/money/income-tax/income-tax-return-filing-due-date-for-tax-audit-ay-2019-20-last-date-for-companies-persons/1862502/
[3]https://www.incometaxindia.gov.in/Pages/i-am/individuals.aspx?k=Return%20Filing
[4]https://cleartax.in/s/how-to-file-income-tax-return-for-last-years
[5]https://www.indiatvnews.com/business/news-income-tax-return-filing-due-date-fy-2019-20-extended-november-30-details-616898
[6]https://www.ndtv.com/india-news/due-date-of-income-tax-returns-for-2019-20-to-be-extended-from-july-31-and-october-31-to-november-30-2228198
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ARN No. Aug21/Bg/18DD
