ITR Filing Deadline Extended: Here is What You Need to Know
Giving much relief to individuals during lockdown due to Coronavirus pandemic, the Government has decided to extend the deadline for Income Tax Return (ITR) and has revised the tax return timeline for the financial year 2018-19 from belated 31st March 2020 to 30th June 2020.
Considering the hardships people are facing due to COVID-19, experts have welcomed the relief measures announced by the finance minister.
Here are the essential points you need to know.
Under the income tax laws, the due to file ITR for a financial year usually ends on 31st July of the relevant assessment year. Nevertheless, if someone fails to file their ITR before the due date, they can still file a belated return till 31st March for the same assessment year. It means if you had not filed return for the financial year 2019, you could file a belated return till 31st March 2020. This deadline has now been extended until 30th June.
You can avail of the delayed deadline if you haven’t yet filed the return, however, you will have to pay a late fee at the time of filing returns. A return filed after the due date, i.e. 31st July till 31st December for the assessment year will receive a penalty of Rs 5,000 (Rs 1,000 if income is below Rs 5 lakh). A belated return file between 1st January and 31st March of the assessment year receives a late fine of Rs 10,000. So, if you file a return for financial year 19 now or before 30th June 2020, you will have to pay a fine of Rs 10,000.
Apart from the penalty, a taxpayer is also supposed to pay interest on due taxes every month until they file the return. While earlier this interest was 12% annually on due taxes; now, it has been reduced to 9% per annum till you file the return.
Investment for tax savings
Taxpayers who are still waiting to make investments in various avenues to avail tax deduction under section 80C/80D can avail of this extended time duration. You can make investment till 30th June and continue to claim a deduction for the financial year 2019-20.
Some of the popular options include:
Aviva’s saving plans – Offer tax deduction on premiums paid and tax exemption under 80 (C), 10 (10D).
Aviva’s child plans – Tax deduction on premiums paid and tax exemption under 80 (C), 10 (10D).
Traditional alternatives are - Public Provident Fund (PPF), National Savings Certificate (NSC), and Equity Linked Savings Scheme (ELSS).
Pan Aadhar linking
Another significant deadline for Aadhaar-pan linking which was ending on the upcoming 31st March has been extended to 30th June. If someone doesn’t link their permanent account number (PAN) before the due date, PAN will be considered as the inoperative and Income Tax Department might impose a penalty for using inoperative PAN.
Another major updated from the finance minister’s pressure are:
- Vivad-se Vishwas scheme has been extended to 30th June with no additional charge.
- Last date to file 2020 GST returns for March, April, and May has been extended to 30th June.
- For companies with lesser turnover than Rs 5 Crore, no penalty or interest will be charged.
- Custom clearance has now been placed under essential service till 30th June 2020. It will be working 24/7.
- The requirement to file a declaration for the commencement of business for newly incorporated companies within six months of incorporation has been extended to six more months.
- Debit card holders can withdraw cash from any bank ATMs without additional charge till 30th June 2020.
Controlling the COVID – 19 outbreak is the topmost requirement for the government at present. In addition, it is also time to combat the worst slowdown in a decade. Hope the steps, take by the Indian Government would give some relief to taxpayers, and businesses.