This is the third time the Indian government has extended the deadline to file Income tax returns. It has been extended till 10th January 2021 for taxpayers which was July 31st 2020 initially. Earlier it was extended to Nov 30th and then Dec 31st 2020. Additionally, the Finance Ministry also extended the date for submitting the tax audit report to January 15th, 2021.
Previously, taxpayers, CAs and tax practitioner had appealed to the Finance Minister Nirmala Sitharaman for an extension due to the on-going pandemic. They claimed that this time it is difficult for people to collect information and file returns correctly, especially for those who are not tech-friendly.
Additionally, the Central Board of Direct Taxes (CBDT) extended the due date for furnishing Income Tax Returns for FY2019-20 to January 10, 2021 from December 31, 2020. Furthermore, as a relief to small and middle-class taxpayers, the due date for payment of self-assessment tax is now shifted to February 15, 2021.
Under the direct tax dispute resolution scheme Vivad Se Vishwas, the due date for filing declaration is also extended till January 31, 2020. On the other hand, the date to furnish annual return under GST for the financial year 2019-20 is also extended to 28 Feb, 2021.
Although, it needs to be noted that late filing fees is Rs 1,000 for taxpayers with taxable income up to Rs 5 lakh and they file their returns under the 7th proviso of Section 139(1) of the IT Act.
Seventh proviso of section 139 is newly added in the Income-Tax act and filing the ITR is compulsory in these cases:
- If anyone has deposited Rs 1 crore or more in current accounts with a bank
- If one has spent Rs 2 lakh or more on foreign trips in the relevant financial year
- If one has paid an electricity bill of Rs 1 lakh or more in the relevant FY