Individual taxpayers now have time till December 31, 2020, to file ITR for FY19-20. Taxpayers, who need their accounts audited got an extension till January 31, 2021. The Central Board Of Direct Taxes (CBDT) issued a press release regarding the updated tax filing deadline.
Earlier, the last date to file taxes was November 30, 2020. The initial deadline, as per the act was July 31.
ITR filing is mandatory for all taxpayers
As per the tax laws of India, the government levies a tax on taxable income of all individuals, HUFs, LLP, corporate, etc. ITR or Income Tax Return Form is used for reporting all income and tax to the department of Income Tax. In case the return shows that you have paid excess taxes, you become eligible to receive an income tax refund from the IT department.
It is mandatory for all individuals to file the income tax return within the tax filing deadline every year if their income is more than the basic exempted limit. A delay in filing will attract late fees and interest.
Deadline extension is a major relief for taxpayers
Since failing to submit returns within the due date can attract severe consequences, the extension in deadline will give some relief to taxpayers who haven’t filed their return yet.
In the press release issued, CBDT said that the government decided to extend ITR filing last date in view of the challenges faced by the taxpayers due to the outbreak of COVID-19. It’s worth a mention that during the actual last date to file tax, which was July 31, there was nationwide lockdown due to outbreak of a pandemic. Due to which several taxpayers and consultants couldn’t meet the ITR filing deadline.
Let’s take a look at the updated deadlines
- In a press release issued on October 24, the deadline to file ITR for FY 2019-20 extended to December 2020. It is the second revision in the ITR last date
- The government has done it to allow more time to taxpayers to meet IT compliance
- Taxpayers and their partners, who need their accounts audited can submit ITR by January 31, 2020. The additional time will allow them to meet tax audit reports regarding specific domestic and international transactions
- The government extended tax filing deadline for small and middle-class taxpayers filing self-assessment ITR up to Rs 1 lakh. They can now complete the filing process till January 31, 2021
- It will give relief to individuals as they now have more time for e-filing
- However, if you have tax dues or have self-assessed tax-liability of more than Rs 1 lakh, the unpaid amount will attract interest under section 234A from October 31 onwards
The government is offering relaxation on income tax return filing deadline to taxpayers amid COVID-19 condition. However, if you have any tax dues, it’s time to clear them to avoid any penalty. Also, those who want refund must complete the process as early as possible so that their ITRs get processed quickly.