Extension in time limits under Direct Tax
The Central Board of Direct Taxes (CBDT) has further extended time limits under direct tax and Benami laws in view of major compliance relief for taxpayers impacted by the disruption due to COVID-19. The extension of various time limits was issued vide Notification no. 35/2020 [S.O. 2033(E)] dated 24th June 2020. The said notification shall come into form w.e.f. 30 June, 2020.
Summary
In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Novel Corona Virus (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. In order to provide further relief to the taxpayers for making various compliances, the Government has issued a Notification on 24 June, 2020.
The deadlines falling between 20 March 2020 and 31 December 2020 under the Specified Acts (i.e. the Wealth Tax Act, 1957; the Income-tax Act, 1961 (IT Act); The Prohibition of Benami Property Transactions Act, 1988; Chapter VII of the Finance (No. 2) Act, 2004; Chapter VII of the Finance Act, 2013; The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015; Chapter VIII of the Finance Act, 2016 and the Direct Tax Vivad se Vishwas Act, 2020) has been extended to 31 March 2021, except for following:
| S. No. | Particulars | Original Due Date | Due Date as per the aforesaid Notification |
| 1 | Matters other than specifically provided:
a. Completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the specified Act; or b. Filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the specified Act |
Deadline falling between 20 March 2020 and 31 December 2020 | 31 March 2021 |
| 2 | Tax return for Financial Year 2018-19 (Belated/ Revised tax return) | 31 March 2020 | 31 July 2020 |
| 3 | Tax Return for Financial Year 2019-20 | 31 July 2020/
31 October 2020/ 30 November 2020 |
30 November 2020 |
| 4 | Date of Furnishing of Tax audit report for FY 2019-20 | 30 September 2020/
31 October 2020 (where TP is involved) |
31 October 2020 |
| 5 | TDS / TCS returns for 4th Quarter of FY 2019-20 | 31 May 2020 | 31 July 2020 |
| 6 | Issuance of Salary Certificate (i.e. Form 16) and TDS Certificate (Form 16A) for FY 2019-20 | 15 June 2020 | 15 August 2020 |
| 7 | Making investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, to claim deduction, exemption or allowance under following provisions
– Section 54 or 54 GB or – Under any provisions of Chapter VI-A under heading B-Deductions in respect of certain payments |
31 March 2020 | 30 September 2020 |
| 8 | Commencement of Operation for Special Economic Zone units under section 10AA of the IT Act | 31 March 2020 | 30 September 2020 |
| 9 | Time Limit for completion of payment under “Vivad se Vishwas Scheme’ | 30 June 2020 | 31 December 2020 |
| 10 | Date of payment of Self-assessment tax in case where the taxpayer whose self-assessment income is upto INR 1 Lakh | – | 30 November 2020 |
- The reduced rate of interest of 9% for delayed payments of taxes, levies, etc. specified in the Ordinance shall not be applicable for the payments made after 30 June 2020.
- Interest under section 234A of the IT Act (levied for delay in filing the Tax Return) not to be levied if the self-assessment tax liability does not exceed INR 1 Lakh.
- The timeline for linking PAN and Aadhar extended to 31 March 2021.
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