Govt extends timelines for income tax compliance amid Covid-19 crisis

In view of hardships faced by taxpayers because of the pandemic, the government on Thursday extended several income tax (I-T) compliance timelines, including 2020-21 income tax returns (ITR), for individuals by two months to September 30.
 
“The Centre, in continuation of its commitment to address the hardships being faced by various stakeholders on account of the severe Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,1961,” said CBDT in a statement on Thursday.
 
The I-T department also extended the ITR filing deadline for companies by a month till November 30. The due date for filing Tax Deduction at Source (TDS) returns and the Statement of Financial Transaction statements, has been extended by one month to June 30, whereas corresponding due dates for issuance of TDS certificates has also been extended by 1 month to July 15. Besides, for corporate taxpayers and individual taxpayers liable to tax audit, the due date has been extended by a month, from October 31 to November 30.

 

The due dates for filing of Tax Audit Report and Transfer Pricing Certificate have also been extended by a month from their respective due dates. The last date for filing belated or revised returns for all categories of taxpayers has been extended by a month, from existing December 31, 2021 to January 31, 2022.
 
Shailesh Kumar, Partner, Nangia & Co LLP said that the proactive step by the government by extending due dates for various Income tax compliances well in advance, instead of waiting for the last minute will provide some relief to taxpayers. “However, for taxpayers, whose entire income tax liability is not discharged by TDS and advance tax and such shortfall is more than Rs 1 lakh, they should endeavor to file their ITR within respective original due date to avoid charge of interest… which is charged on filing ITR beyond the original due date at the rate of 1 per cent per month for every month/ part thereof after original due date of filing ITR,” said Kumar.

 
CBDT has also extended the deadline for issuing Form 16 by employers to employees by a month till July 15.
 
Meanwhile, the income tax department will launch its new e-filing portal on June 7, hence the existing portal will not be available for 6 days, between June 1 and June 6.
 
Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm said that it was critical to support businesses by providing relief on tax compliances front as the second wave of Covid has affected every part of India at large. “These due date relaxations will surely reduce compliance burden for businesses. However, the government has not given any relaxation in payment of taxes as it needs money to support the economy and provide healthcare infrastructure,” said Maheshwari.

 
Saraswathi Kasturirangan, Partner, Deloitte India said that the tax withholding on salary for FY 20-21 had added complexities in terms of determining taxable employer contributions to PF, NPS and Superannuation, identifying and reporting interest accretions on the same, enabling employees to avail the deemed Leave Travel Concessions etc. “The extension of timeline to file the quarterly e-TDS returns from 31 May to 30 June and the issue of Form 16 from 15 June to 15 July is therefore a welcome reprieve,” said Kasturirangan.