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CBDT Extends Assessment/Reassessment/Penalty Completion Date to April/June 2021

cbdt-extends-assessment-reassessment-penalty-completion-date-to-april-june-2021

CBDT vide Notification no. 10/2021 in S.O. 966 (E) dated 27.02.2021 has extended the time barring assessment/reassessment completion dates and penalty dates to 30.04.2021 and 29.06.2021 respectively from March 31, 2021.


Earlier on 26.02.2021, CBDT, on its own, extended the date for filing of declaration under Direct Tax Vivad Se Vishwas Scheme to 31.03.2021 from 28.02.2021 and the date for payment of disputed tax without any 10% additional surcharge amount to 30.04.2021 vide Notification No. 9/2021.


This time the Notification has been issued well in time almost one month prior to the extended due date.



The extension is only related to the completion of proceedings by the income tax department. There is no extension for any compliances which are required to be made by the assessee.


The Notification of 27.02.2021 has amended the Notification No. 93/2020 dated 31.12.2020 which extended the due dates for filing ITR and Tax Audit Report due dates to 15th February 2021 and 15th January 2021 respectively. In non-audit cases, the due date for filing of ITR was extended to 10th January 2021. Apart from the assessee-side compliances, the Notification had extended the completion date of various compliances under the specified Acts to 31st March 2021 which falls between the period from 20th March 2020 to 30th March 2021. 


The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has already extended the said completion date to 31-03-2021 for the period between 20th March 2020 to 31st December 2020. This time the notification has expanded the compliances period to cover the period from 1st January 2021 to 30th March 2021. This shall be applicable not only to Income Tax Act, 1961 but also to seven other specified Acts in the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which are as follows-


(i) the Wealth-tax Act, 1957; 27 of 1957.

(ii) the Income-tax Act, 1961; 43 of 1961.

(iii) the Prohibition of Benami Property Transactions Act, 1988; 45 of 1988.

(iv) Chapter VII of the Finance (No. 2) Act, 2004; 22 of 2004.

(v) Chapter VII of the Finance Act, 2013; 17 of 2013.

(vi) the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015; 22 of 2015.

(vii) Chapter VIII of the Finance Act, 2016; or 28 of 2016.

(viii) the Direct Tax Vivad se Vishwas Act, 2020; 3 of 2020.


It should be noted that the Notification 93/2020 has only extended the date for compliances that falls under section 3(1)(a) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. These compliances are meant for tax authorities, commission and tribunals and not for the assessee.


The said clause (a) reads as follows-


(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


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The notification has been issued under section 3(1) of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which empowers the central government to extend the various compliance dates under the Income Tax Act, 1961 and certain under other specified Acts.


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The extension of various time barring or limitation dates as extended by NOtification 10/2021 dated 27.02.2021 for different nature of proceedings are listed below-


1. Date for passing of assessment or reassessment orders under the Income Tax Act, 1961 that are getting time barred on 31st March, 2021 due to extension of limitation date by the Notification No. 93/2020 dated 31st December, 2020 has been extended to 30th April, 2021.


2. Date for passing assessment or reassessment orders [not covered in (1) above i.e. normal due date without extension is 31.03.2021], that are getting time barred on 31st March, 2021, as per time limit specified in section 153/ 153B of the Income-tax Act, 1961 has been extended by 6 months i.e. to 30th September, 2021.


3. Date for passing of penalty orders extended to 30th June, 2021


4. Date for issue of notice & passing of orders by the Adjudicating Authority under the Prohibition of Benami Property Transaction Act, 1988, (Benami Act) extended to 30th September, 2021.




Read the full text of Notification No. 10/2021 dated 27.02.2021 extending Date of Completion of Assessment/ Reassessment/ Penalty proceedings


MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)


NOTIFICATION


New Delhi, the 27th February, 2021


S.O. 966(E).—In exercise of the powers conferred by sub-section (1) of section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020) (hereinafter referred to as the said Act), and in partial modification of the notification of the Government of India in the Ministry of Finance, (Department of Revenue) No.93/2020 dated the 31st December, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 4805(E), dated the 31st December, 2020 (hereinafter referred to as the said notification), the Central Government hereby specifies, for the purpose of sub-section (1) of section 3 of the said Act, that,-


(A) where the specified Act is the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) and the completion of any action, as referred to in clause (a) of sub-section (1) of section 3 of the said Act, relates to passing of any order—


(a) for imposition of penalty under Chapter XXI of the Income-tax Act, —


(i) the 29th day of June, 2021 shall be the end date of the period during which the time limit specified in or prescribed or notified under the Income-tax Act falls, for the completion of such action; and


(ii) the 30th day of June, 2021 shall be the end date to which the time limit for completion of such action shall stand extended;


(b) for assessment or reassessment under the Income-tax Act, and the time limit for completion of such action under section 153 or section 153B thereof, —


(i) expires on the 31st day of March, 2021 due to its extension by the said notification, such time limit shall stand extended to the 30th day of April, 2021;


(ii) is not covered under (i) and expires on 31st day of March, 2021, such time limit shall stand extended to the 30th day of September, 2021;


(B) where the specified Act is the Prohibition of Benami Property Transaction Act, 1988, (45 of 1988) (hereinafter referred to as the Benami Act) and the completion of any action, as referred to in clause (a) of sub-section (1) of section 3 of the said Act, relates to issue of notice under sub-section (1) or passing of any order under sub-section (3) of section 26 of the Benami Act,—


(i) the 30th day of June, 2021 shall be the end date of the period during which the time limit specified in or prescribed or notified under the Benami Act falls, for the completion of such action; and


(ii) the 30th day of September, 2021 shall be the end date to which the time limit for completion of such action shall stand extended.


[Notification No. 10/2021/F. No. 370142/35/2020-TPL] 

SHEFALI SINGH, Under Secy., Tax Policy & Legislation Division


Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. No. 4805 dated 31st December, 2020.


Download CBDT Notification No. 10/2021 dated 27.02.2021 Extending Date of Completion of Assessment/ Reassessment/ Penalty proceedings in pdf format


Further Readings:

 

Analysis of New Extended Due Dates for Compliances and Investments under Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

 

No Extension of Due Date of TDS payment for March 2020 onwards amid COVID-19

 

New reduced TDS Rate Chart for FY 2020-21 and Income Tax Relief Measures

 

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CBDT amends Tax Audit Report Form 3CD, ITR 6, Form No 10-IE and 10-IF for section 115BAA, 115BAB, 115BAC, 115BAD and Rules from AY 2020-21

 

Is ITR and Tax Audit Due Date Extended till 31.03.2021

 

How to report EPF and ESI due date extension in Tax Audit Report for AY 2020-21



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