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Income Tax Update: Further extension in tax compliance deadlines
Income Tax Update: Further extension in tax compliance deadlines

June 25, 2020

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In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements due to the outbreak of Novel Corona Virus (COVID-19), the Government has further extended time limits for making various compliance under the Income Tax Act.

Summary of the announcements is provided below:

  1. Filing original and revised income-tax returns for the FY 2018-19 (AY 2019-20) – July 31, 2020 (Earlier extension was granted till June 30, 2020)
  2. Due date of income tax return for the FY 2019-20 (AY 2020-21) – November 30, 2020Due date for furnishing tax audit report – October 31, 2020
  3. Payment of self-assessment tax for taxpayer whose self-assessment tax liability is upto Rs. 1 lakh – November 30, 2020
  4. Making investment/payment for claiming deduction under Chapter-VIA-B of Income Tax Act (IT Act) – July 31, 2020 (Earlier extension was granted till June 30, 2020)
  5. Making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains u/s 54 to 54GB – September 30, 2020 (Earlier extension was granted till June 30, 2020)
  6. Commencement of operation by SEZ units for claiming deduction u/s 10AA – September 30, 2020 for units which received approval by March 31, 2020 (Earlier extension was granted till June 30, 2020)
  7. Furnishing TDS/ TCS statements for FY 2019-20 – July 31, 2020Issuance of TDS/ TCS certificates for FY 2019-20 – August 15, 2020
  8. Passing order/issuance of notice  under various direct taxes & Benami Law (required to be passed by December 31, 2020) – March 31, 2021

It has also been clarified that necessary legislative amendments relating to deferment of implementation of new procedure for approval/ registration/ notification of certain entities u/s 10(23C), 12AA, 35 and 80G of the IT Act and reduction in TDS rate for specified non-salaried payments to residents and specified TCS rates by 25% shall be moved in due course of time.

Overall Comments:

We appreciate the intent of the government to provide businesses with the much needed flexibility due to disruption. Extension of sunset clause by another 3 months for units approved till March 31, 2020 is a welcome move. Due to disruption caused by COVID-19, there has been a restriction on the movement of people and goods. As a result, shipments for IT infrastructure were delayed. As a result, the industry’s ability to set up IT-ITES operations by March 31, 2020 was severely impacted. This will remove hardships faced by such units.

Copy of the press release is attached for your reference.


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