The government has recently extended the time limit to furnish income tax returns (ITRs) and various Tax Audit Reports under the Income Tax Act, 1961 (“Act”) from the prescribed due date under section 139(1) of the Act for all the categories of assessees on 30.12.2020. However different extended due dates for filing of returns (ITRs) have been specified which creates confusion among various taxpayers which is narrated in s simplified manner.
Section 139(1) and the provisos thereunder requires a person to furnish his return of income or loss for the previous year on or before the due date. Explanation 2 to section 139(1) prescribes the ‘due date’ for filing of return of income for a previous year. Different due dates have been prescribed for different class of persons as listed below-
Notes:
1. The due date to file return of a partner of the firm which is not subject to tax audit is 31st July, whereas, the due date to file return of a partner of the firm which is compulsory subject to tax audit is 31st October of the assessment year. The Finance Act, 2020 has removed the distinction between a working and a non-working partner.
2. The due date to furnish return by a charitable trust is 31st October if tax audit is applicable. Otherwise, the due date is 31st July.
3.The due date to furnish return by a political party is 31st October if tax audit is applicable. Otherwise, the due date is 31st July.
Further, Finance Act, 2020 has prescribed the “Due Date to file a Tax Audit Report”. It is provided that the due date to furnish a tax audit report is one month prior to the due date of filing of return of income. Hence, the due date to file a tax audit report is linked with the ITR filing due date.
Clause (ii) of the Explanation to section 44AB defines the expression “specified date” as the due date for furnishing the return of income under section 139(1) to mean one month prior to the due date for furnishing the return of income under section 139(1).
A similar amendment is also carried on in section 92F to provide for a due date of filing of a tax audit report which is required to be obtained under section 92E. Prior to the amendment, the tax audit report was required to be filed on or before the due date specified in section 139(1) which is 30th November of the assessment year.
After the amendment by the Finance Act, 2020, the due date to furnish the tax audit report is preponed with the return filing due date under section 139(1) and it is provided that the tax audit report shall be furnished one month prior to the due date for furnishing the return of income under section 139(1). The provision is in the same line with section 44AB.
Similar amendments have been made in all the sections of the Act which mandates the filing of audit report along with the return of income or by the due date of filing of return of income.
Thus, provisions of section 10, section 10A, section 12A, section 32AB, section 33AB, section 33ABA, section 35D, section 35E, section 44AB, section 44DA, section 50B, section 80-IA, section 80-IB, section 80JJAA, section 92F, section 115JB, section 115JC and section 115VW of the Act have been amended accordingly. For this purpose, amendments were carried out in these provisions to re-define the term ‘specified date’ used in these provisions.
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These amendments will take effect from 1st April, 2020 i.e. assessment year 2020-2021 and subsequent assessment years.
Due to ongoing COVID-19 pandemic, the government is extending the time limit of various compliances under the Income Tax Act, Direct Tax Vivad se Vishwas Act, and certain other Acts. The Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31st March. 2020 which, inter alia, extended various time limits. The Ordinance has since been replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.
The Government issued a Notification No. 35/2020 on 24th June 2020 under the Ordinance which, inter alia, extended the due date for all Income Tax Returns for the FY 2019-20 (AY 2020-21) to 30th November 2020. Hence, the returns of income which were required to be filed by 31st July. 2020 and 31st October 2020 were required to be filed by 30th November 2020. Consequently, the date for furnishing various audit reports including tax audit report under the Income-tax Act. 1961 was also extended to 31st October 2020.
These dates were further extended to 31st January 2021 and 31st December 2020 for ITR filing and filing of audit reports vide Notification No 88/2020/F. No. 370142/35/2020-TPL dated 29th October 2020.
Despite such extension, taxpayers were finding it difficult to comply with the compliances which the government has duly acknowledged. It stated that in view of the continued challenges faced by taxpayers in meeting statutory compliances due to outbreak of COVID-19, the government further extends the dates for various compliances. It issued a Press release on the extension of time limits on 30.12.2020.
Para 4 of the said Press Release extends the time limit for filing of ITR forms and Tax Audit Reports for various categories of taxpayers in the following words-
4. Considering the problems being faced by the taxpayers. it has been decided to provide further time to the taxpayers for furnishing of Income Tax Returns. tax audit reports and declaration under Vivad Se Vishwas Scheme. Further. in order to provide more time to taxpayers to comply under various ongoing proceedings. the dates of completion of proceedings under various Direct Taxes & Benami Acts have also been extended. These extensions are as under:
a. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers (including their partners) who are required to get their accounts audited and companies [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 31st October, 2020 and which was extended to 30th November, 2020 and then to 31st January, 2021] has been further extended to 15th February. 2021.
b. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers who are required to furnish report in respect of international/specified domestic transactions [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 30th November, 2020 and which was extended to 31st January, 2021] has been further extended to 15th February, 2021.
c. The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the other taxpayers [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act, 1961, was 31st July, 2020 and which was extended to 30th November, 2020 and then to 31st December, 2020] has been further extended to 10th January, 2021.
d. The date for furnishing of various audit reports under the Act including tax audit report and report in respect of international/specified domestic transaction for the Assessment Year 2020-21 has been further extended to 15th January, 2021.
e. The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31' January, 2021 from 31st December, 2020.
f. The date for passing of orders under Vivad Se Vishwas Scheme, which are required to be passed by 30th January, 2021 has been extended to 31st January, 2021.
g. The date for passing of order or issuance of notice by the authorities under the Direct Taxes & Benami Acts which are required to be passed/ issued/ made by 30th March, 2021 has also been extended to 31st March, 2021.
No notification is issued on the extension of the above time limits and the same in this regard shall be issued in due course.
From the above paragraphs, the extension of various due dates for various classes of assesses is given in the below table-
In short, the extension of due dates for filing of ITR forms for AY 2020-21 are -
Extension of Due Dates and Interest for belated filing of return u/s 234A
Further, the due date for payment of self-assessment tax date is again being extended. The due date for payment of self-assessment tax for taxpayers whose self-assessment tax liability is up to Rs. 1 lakh has been extended to 15th February 2021 (for tax audit assessees) and to 10th January 2021 (for non tax-audit cases).
Though the due date for filing of Income-tax Return for the Assessment Year 2020-21 has been extended, however, in this case, it should be noted that there is no immunity provided from the levy of interest u/s 234A for filing of return of income by 15th February 2021 or 10th January 2021 from the due date specified in section 139(1) if the self-assessment tax liability exceeds Rs. 1 Lakh. The immunity or relief from levy of interest u/s 234A is provided only in a case where the self-assessment tax payable is upto Rs. 1 Lakh. In case the self-assessment tax payable is more than Rs. 1 Lakh, interest u/s 234A will be payable on the entire amount of the self-assessment tax from the expiry of original due dates prescribed u/s 139(1), that is, 31-07-2020 or 31-10-2020, as the case may be. The interest under section 234A shall not be levied if the self-assessment tax liability of taxpayer does not exceed Rs. 1 lakh and ITR is filed within the extended due date.
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