Government has given a big relief by extending the due date of Income Tax Return and Audit Report for FY 19-20 VIDE Press Release dt 24.10.2020.

Vide notification on 24^th June 2020 govt has extended the due date for all Income Tax Returns for FY 19-20( AY 20-21) to 30.11.2020. Hence the due date of return which was required to file on 31.07.2020 and 31.10.2020 was required to file by 30.11.2020. Also the date of filing of tax audit report under Income Tax Act,1961 was also been extended to 31.10.2020

Now govt has given more time to furnish Income Tax Return as under:

1. The due date for furnishing of ITR for the taxpayers (including their partners) who are required to get their accounts audited has been extended to 31st January, 2021

2. The due date for furnishing of Income Tax Returns for the taxpayers who are required to furnish report in respect of international/specified domestic transactions has been extended to 31st January, 2021

3. The due date for furnishing of Income Tax Returns for the other taxpayers has been extended to 31st December, 2020.

4. The date for furnishing of various audit reports under the Act including tax audit report and report in respect of international/specified domestic transaction has also been extended to 31st December,2020.

This is the big relief which is given by govt. The necessary notification in this regard shall be issued in due course.

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Income Tax Department issued notification no 35/2020 dated extending due dates further till 31.03.2021.

Exceptions were also provided in the said notification for which extension will not be provided till 31.03.2021.

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Due dates for TDS for Ist and 2nd Quarter of FY 20-21 extended till 31.03.2021.

Read notification below :

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Income Tax Department will launch a special e campaign from 20.07.2020 for voluntary compliance for FY 2018-19.

This campaign will end on 31.07.2020 and will focus on the taxpayers who are either non filers or have deficiency in their Income Tax Returns for FY 2018-19.

Read Also : Approval of GST pending application

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This will benefit the taxpayers who has undergone high value transactions by sending emails or SMS to them regarding such transactions.

The high Value transaction will be provided on the income tax portal and any inconsistency will be required to be corrected in the ITR by using this facility.

Read the Full Details here :

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CBDT has announced One-Time relaxation for verification of Income Tax Returns for last five assessment year from AY 15-16 to AY 19-20. Relief is being given to them who have FILED their return, but haven’t verified it.

Now Verification can be done through:-

• Aadhar otp,
• By logging into e-filling account through NetBanking
• EVC through bank account number
• EVC through Demat Account Number
• EVC through bank ATM
• Sending physical singed copy to CPC Bangalore.

So if for the AY 15-16, AY 16-17, AY 17-18, AY18-19, AY 19-20 if  you have filed your return within the time frame under section 139 of the act, but have not verified it within 120 days then the same can be done before 30.09.2020.

(Also Read New Income Tax Forms for AY 20-21)

Further, CBDT has also relaxed the time for issuance of intimation u/s 143(1) of the Act and has directed that such return can be processed by 31.12.2020.

In refund cases for determination of interest provision of section 244A(2) of the act shall apply .

In case assessee doesn’t regularize his return by furnishing valid verification before 30.09.2020 ,then the consequences for non filling of return shall apply.

So if you have filed your return but haven’t verified it then a last chance is given to verify your return and make your return a valid return.

Read circular below:

circular_13_2020

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In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021

Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above.

It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of
PAN/Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.

Read Also : LOCK DOWN 4.0 GUIDELINES

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CBDT reduced the rate of TDS and TCS from 14.05.2020 to 31.03.2021. Full list of new rates of TDS are enclosed herewith.

TDS on the amount paid or credited during the period from 14.05.2020 to 31.03.2021 shall be deducted at the reduced rates as mentioned.

Read Also : GST new notifications for Taxpayers Relief

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In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh, immediately.

This would benefit around 14 lakh taxpayers.

It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore.

Earlier, Government has relaxed provisions related to loans and financial institution to provide relief to the persons. Moratorium of 3 months  may be allowed by banks to the loan holders for payments of EMI. Payment of credit card has also been included in this moratorium as clarified by the Reserve Bank Of India. 

All kinds of Term Loans having specific time period for repayment is covered under this moratorium.It includes Housing Loan, Personal Loan , Vehicle Loan, etc.Interest on working capitals loans has also been relaxed for SMES.

CBIC has extended various filing dates and issued notifications and circulars to provide relief to taxpayers. Interest on late payment of GST has been reduced with conditional filing . GST Late fees has been waived with conditional filing of GST Returns upto a specific date.Conditions for claiming restricted Input Tax Credit U/r36(4) has also been suspended for the period from February 2020 to August 2020.

Various dates which was due on 31.03.2020 in respect of Income Tax and also savings scheme also extended till 30.06.2020. Investments in various schemes to take the benefit under Income Tax for FY 2019-20 can be made till 30.06.2020.

The date of Financial Year has not been changed from 31.03.2020 to 30.06.2020 , but only the date of some compliance has been extended.

Read Also : Income Tax Deductions 

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Deduction in Income Tax in respect of certain payments made are allowed from 80C to 80GGC.Here we will discuss about 80C deduction. Sectors in which you can invest and get Tax benefit.

• First of all we will see that which assessee can get deduction 

  • The deduction is allowed only to an Individual or an HUF from their gross total income.Read Also: Income Tax Work to be Done Before 31.03.2020

• Maximum amount of deduction allowed?

  • Assessees shall be allowed to a deduction of whole of the amount paid/deposited during the FY provided that the aggregate of sum deposited doesn’t exceed Rs 1,50,000/-

• Sectors of Investment

  • LIC– Amount paid by an individual to keep in force an insurance on the life of himself, his/her spouse, child of the individual. In case of HUF premium paid on the life of member of the HUF. (Point to note – The children may be married/unmarried, dependent/not dependent on the individual)

  • Contribution made by the employee towards a statutory provident fund or recognized provident fund. The deduction in respect of this payment is allowed only to individual only.

  • Contribution towards PPF by an individual/HUF. The contribution can be made in the name of individual/spouse/children/member of HUF.

  • Contribution by an employee towards Approved Superannuation fund.

  • Any contribution made to any such security of the Central government or any such deposit scheme as that Government may by notification specify in this behalf

    • Following schemes have been notified:

      • Subscription by Individual or HUF to National Saving Scheme,1992

      • Sum deposited in the name of a girl child of the individual, or any girl child for whom such person is the legal guardian under Sukanya Samriddhi Account

  • Subscription by individual or HUF to National Saving Certificate (VIII or IX Issue).Any interest accrued on these certificates also qualifies for deduction except for the last year interest as they are not deemed to be reinvested

  • Contribution by Individual or HUF in the Unit Linked Insurance Plan (ULIP) of the Unit Trust of India or Unit Linked Insurance Plan of LIC Mutual Fund referred in 10(23D)

  • Contribution by Individual or HUF to Equity Linked Saving Scheme (ELSS),2005

  • Contribution by Individual or HUF to UTI-Retirement Benefit Pension Fund

  • Subscription by Individual or HUF to pension fund Specified by National Housing Bank i.e. the Home Loan Account Scheme of the National Housing Bank

  • Subscription by Individual or HUF to any notified deposit scheme of:

• • • A public sector co engaged in providing long term finance for construction or purchase of residential houses in India

  • Sum paid by individual as tuition fees which is paid at the time of admission or thereafter and is paid to any school, college, university or other educational institution subject to maximum for two children

  • Any payment by individual or HUF for purchase or construction of a residential house property

  • Any sum deposited in a term deposit for a fixed period of not less than 5 years with a scheduled bank

  • Any sum deposited as a five year time deposit in an account under Post Office Time Deposit Rules,1981

  • Subscription to bonds issued by the NABARD

  • Sum deposited in an account under Senior Citizen Saving Scheme Rules,2004

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As we are all aware that the Financial year 19-20 is coming to end. 31st March 2020 is the last date for the Financial Year.  So all the taxpayers has to complete their financial obligation on or before 31.03.2020 . Some of the important points for Taxpayers to do before 31st March 2020 are as follows :

• Filing of Income Tax Return: In case you haven’t filed your income tax return for the FY 18-19 / AY 19-20 , then you must file your belated return before 31^st March 2020. Since it will be a belated return there will be Late Fees  for late filing u/s 234 F.If your income is below Rs 5 lakh Late Fees  is Rs 1,000 and in case income is above Rs 5 Lakh Late Fees is Rs 10,000. After 31.03.2020 the Income Tax Return for FY 2018-19 / AY 2019-20 cannot be filed.

        Read Also : 39th GST Council meeting Decisions 

• Link your Adhaar with your PAN: Linking of adhaar and PAN is mandatory for PAN holders who are required to file their Income Tax Return. If Adhaar and PAN is not linked within this date the PAN will be deactivated. Also, Penalty of Rs 10,000 may be levied for the same. Process to link adhaar with PAN is given here.

• Deduction under Income Tax: In Income Tax certain deduction is allowed to taxpayer if some investment is made to certain specific sectors then the taxpayer can avail tax benefit.Taxpayers can avail deduction u/s 80C,80D,80G etc by making investments before 31.03.2020.

• Calculate your Income: You can calculate your Total Income and plan to save your Tax. In case Total Income is upto Rs 5 lakh then the eligible assesse is allowed rebate of Rs 12,500 or 100% of Tax whichever is lower. Suppose your income exceeds Rs 5 lakh even by one rupee then the rebate vanishes.So you can save tax by donating to specified organization,taking medical insurance of self,parents,contributing to NPS as contribution to NPS u/s 80CCD(1B) is over and above 80C. So plan your Income accordingly and do the investments before 31^st March 2020.

• Pay Your Advance Tax: As the last date of last installment was 15th March but in case you have missed that out pay it before 31st March 2020 so that a little less interest will be levied.

• In case Salaried Employee submit your exemption/deduction proof : In case of salaried employee they are not required to pay advance Tax as TDS is deducted by employer and deposited in their account but to reduce the TDS deduction the salaried employee should submit their proof of investment in any made under 80C,80D,80G etc to their employer,also submit proof of rent paid if you are getting any HRA.This will allow the employer to calculate the tax properly and less TDS will be deducted.

• Compulsory Investment in PPF:If the assesse has a PPF Account, then there is minimum amount of Rs 500 which is required to be deposited to your PPF Account to keep your account active. So in case you have missed out to deposit, deposit it before 31^st March 2020

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New circular issued to give some time to install and operationalise the new system. The penalty U/s 271DB will be applicable from 01.02.2020

Read Also : GST NEW RETURN 

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