Further to our earlier update of March on the Ordinance promulgated by the Government for extension of due dates under multiple statutes, this is to update you on the welcome Notification dated 24 June 2020 (effective from 30 June 2020) and the Press release of the same date issued by the Ministry of Finance extending various timelines again under Direct Tax law i.e. under Income Tax Act (the Act) including Equalisation Levy and the Benami law.
We have listed down the amendments as under:-
- The general extension was granted upto 30 June 2020 for the due dates falling / expiring between 20 March – 29 June 2020. The said due date period has now been extended to 31 December 2020 (but with some exceptions listed below) and the timeline for completion which falls upto 31 December 2020 for passing of order or issuance of notice by the authorities and various compliances under various Direct Taxes & Benami Law is now extended till 31 March 2021.
- Last date for filing the income-tax returns for FY 2018-19 extended to 31 July 2020.
- Last date for filing the income-tax returns for FY 2019-20 in all cases is extended to 30 November 2020.
- Last date for furnishing the tax audit report for FY 2019-20 (in non-TP cases) extended to 31 October 2020.
- Last date for furnishing the TDS return for the last quarter of FY 2019-20 and TCS return for February and March 2020 is extended to 31 July 2020.
- Last date for issuance of certificates of TDS / TCS for FY 2019-20 is extended to 15 August 2020.
- Last date for commencement of operation in SEZ units (for which letter of approval received upto 31 March 2020) for claiming deduction under section 10AA of the Act is extended to 30 September 2020.
- Last date (where the compliance in normal course is required upto 29 September 2020) for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB of the Act is extended to 30 September 2020.
- Last date for making various investment/ payment for claiming deduction under Chapter-VIA-B of the IT Act for FY 2019-20 which includes section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), 80CCD (NPS) etc. extended to 31 July 2020.
- Last date for linking Aadhaar with PAN on the Income Tax portal is extended to 31 March 2021.
- Last date for the actions / compliances (which falls upto 30 December 2020) under VsV Direct Tax settlement scheme without additional payment has been extended to 31 December 2020.
- Last date for payment of self assessment tax for the taxpayer whose self-assessment tax liability is upto Rs. 1 lakh is extended to 30 November 2020. However it has been clarified that no extension for the date of payment of self-assessment tax for the taxpayers having self assessment tax liability exceeding Rs. 1 lakh and interest will be levied for the delay.
Further, there is no extension in the date mentioned in section 3(2) of the Ordinance, hence, it has been clarified in the PRESS RELEASE that the reduced rate of interest of 9% (i.e. @ 0.75% pm) for delayed payments of taxes, levies etc. specified in the ordinance shall not be applicable for delayed payments made after 30 June 2020.
It has also been clarified in the Press Release that necessary amendments will be made in the statute separately to codify the Press Releases pursuant to the extension granted earlier on the implementation of the new approval procedure for Trusts etc (introduced by Finance Act, 2020) and the reduction of TDS rates by 25% upto 31 March 2021.
Although, it would be good if the government extends the concessional interest rate as well for the delay due to liquidity issues, however, overall its a welcome move by the Government to grant timely relief to the taxpayers during this challenging Covid period.
We will be happy to provide any clarifications.
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