The government on Thursday extended the due date for filing personal income tax returns for 2020-21 by two months to September 30th.
The Central Board of Direct Taxes (CBDT) has also extended the ITR filing deadline for businesses by one month to November 30th.
In accordance with the Income Tax Act, the deadline for filing ITR is July 31 for individuals whose accounts do not need to be audited and who typically file their income tax returns using ITR-1 or ITR-4. The deadline for taxpayers like corporations or firms whose accounts need to be audited is October 31st.
In a circular, the CBDT announced that an extension of the deadline was planned for certain tax compliance “in order to provide taxpayers with relief in the face of the severe pandemic”.
In addition, the deadline for employers to issue Form 16 to employees has been extended by one month to July 15, 2021, according to the CBDT.
The due date for filing the tax audit report and the transfer pricing certificate has been extended by one month to October 31 and November 30, respectively. The deadline for filing a late or revised income refund is January 31, 2022.
In addition, the deadline for financial institutions to submit the Statement of Financial Transaction (SFT) report has been extended to June 30 from May 31, 2021.
Shailesh Kumar, LLP partner at Nangia & Co, said the extension of due dates is likely to bring some relief to taxpayers in terms of tax compliance.
“However, for taxpayers whose total income tax liability is not relieved by TDS and input tax, and whose deficit is more than Rs 1 lakhs, they should endeavor to submit their ITR within the applicable original due date to avoid collecting interest fees 234A applicable to filing ITR after the original due date will be charged at a rate of 1 percent per month for any month / part thereof after the original due date for filing ITR, “added Kumar.
On April 1, the CBDT had filed forms for filing IT reports for the 2020-21 financial year and stated that in view of the ongoing crisis due to the COVID pandemic and for the convenience of taxpayers, no material changes compared to last year’s ITR shapes were made. The new ITR forms ask taxpayers if they can opt for a new tax system.
For the 2020-21 fiscal year, the government had given taxpayers the opportunity to choose a new tax system under Section 115BAC of the IT Act.
The new IT areas are designed for individuals who do not take or waive certain specified deductions or exemptions while calculating total income for tax purposes.
Below that, an annual income of up to Rs 2.5 lakh is tax-free. People who earn between 2.5 and 5 lakh pay 5 percent tax. Income between 5 and 7.5 lakh is taxed at 10 percent, while income between 7.5 and 10 lakh is taxed at 15 percent.
Those who earn between 10 and 12.5 lakh pay tax of 20 percent, while those between 12.5 and 15 lakh pay 25 percent. Income over Rs 15 lakh is taxed at 30 percent.
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