Consultants anticipate additional extension of tax return deadline as COVID-19 instances proceed to rise

Amid rising variety of coronavirus instances, the tax division might have to return out with extra measures and additional lengthen the timelines to assist the taxpayers adjust to the statutory norms, in line with specialists. Though tax specialists have welcomed the host of initiatives taken by the Finance Ministry to assist the taxpayers in instances of unprecedented disaster created by coronavirus pandemic, they really feel that one thing extra might must be carried out until the normalcy returns.

Amongst different measures, the Revenue Tax Division has prolonged numerous timelines to assist the taxpayers stay on the appropriate facet of the legislation even through the instances of pandemic and repeated extensions of lockdowns to forestall unfold of coronavirus.

Observing that main aid measures by way of extension of timelines and curiosity waivers had been undertaken by the federal government via an Ordinance on March 31, Gaurav Mohan, CEO AMRG & Associates stated, “Contemplating the present scenario, increasingly more aid measures are wanted for the taxpayers to maintain the financial system rolling that are being launched with time”.

The coronavirus instances within the nation have exceeded 6.5 lakhs and it might take months earlier than the vaccine is developed or the normalcy is restored.

Commenting on the federal government’s determination lengthen the date of submitting of earnings tax return in view of the pandemic, Naveen Wadhwa, DGM, Taxmann stated, “The due date of furnishing return of earnings for all assessee for the monetary yr 2019-20 has been prolonged to November 30, 2020 rather than July 31 and October 31, 2020. Therefore, all of the assessee who’re required to file ITR by July 31, 2020, or October 31, 2020 can file their return of earnings until November 30, 2020, with out paying any late payment costs”.

Taxpayers won’t must pay any curiosity if the self-assessment tax legal responsibility stays inside Rs 1 lakh and the return is filed throughout the due date of November 30.

Nonetheless, “if the self-assessment tax legal responsibility of a taxpayer exceeds Rs 1 lakh, he could be liable to pay curiosity below part 234A from the expiry of authentic due dates supplied within the Revenue-tax Act,” Wadhwa added.

On the federal government’s determination to increase the funding deadline to July 31 for claiming tax deduction for 2019-20, Kapil Rana, Founder Chairman, HostBooks Restricted stated, “This aid will assist taxpayer to make their tax planning and cut back tax legal responsibility, who couldn’t make their saving for the monetary yr 2019-20 attributable to this COVID-19 scenario”.

The federal government had launched a brand new schedule specifically Schedule DI and had prolonged the due date for making funding in tax saving devices for the monetary yr 2019-20 from March 31, 2020 to June 30, 2020. The date has been additional prolonged to July 31, 2020.

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