Category: Income Tax

Extension of Various Due Dates of Income Tax Compliances

In view of the severity of the COVID-19 Pandemic, The Central Board of Direct Taxes (CBDT) has proactively extended time limits of certain compliances in order to provide relief to the taxpayers vide Circular No. 9 of 2021 dated 20th May, 2021.

We have summarized the due dates for various compliances as follows:

Particulars of CompliancePeriodOriginal Due Date  Extended Due Date
Statement of Financial Transactions (SFT)F.Y. 2020-21  31st May, 202130th June, 2021
Statement of Deduction of Tax (i.e. TDS Return)Quarter ended March, 2021  31st May, 202130th June, 2021
Certificate of Tax Deducted at Source in Form No. 16F.Y. 2020-21  15th June, 202115th July, 2021
TDS / TCS Book Adjustment Statement in Form 24G  May, 202115th June, 202130th June, 2021
Return of Income for Assessees NOT Liable to Tax Audit / Transfer Pricing Audit  F.Y. 2020-2131st July, 202130th September, 2021 *
Tax Audit Report in Form 3CA-3CD / 3CB-3CD  F.Y. 2020-2130th September, 202131st October, 2021
Return of Income for Assessees Liable to Tax Audit  F.Y. 2020-2131st October, 202130th November, 2021 *
Transfer Pricing Report in Form 3CEB    F.Y. 2020-2131st October, 202130th November, 2021
Return of Income for Assessees Liable to Transfer Pricing  F.Y. 2020-2130th November, 202131st December, 2021 *
Furnishing of Belated / Revised Return of Income  F.Y. 2020-2131st December, 202131st January, 2022

Note (*):

  1. Interest u/s 234A of the Income Tax Act, 1961 shall be applicable where Self Assessment Tax payable is exceeding Rs. 1 Lakh.
  2. In case of Individual Resident Assessee, if Self Assessment Tax is Paid within Original Due date as mentioned above, the same shall be deemed to be Advance Tax for the purpose of Section 234A.

To view the Circular: CLICK HERE

Income Tax: Extension of Time Limits and Compliance

The Central Board of Direct Taxes (CBDT) on 24th June, 2020 vide Notification No. 35/2020, extended the due dates under various sections of the Income Tax, 1961 (hereinafter referred to as “The Act”).

The key extracts of extension of time limits and compliances are as follows:

1. The Due date for furnishing Return of Income for the F.Y. 2018-19 (A.Y. 2019-20) has been extended upto 31st July, 2020

2. The Due date for furnishing Return of Income for the F.Y. 2019-20 (A.Y. 2020-21) has been extended upto 30th November, 2020.

3. In Case of an Office of Government, Due date for furnishing Statement of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been extended upto 15th July, 2020.

4. In Case of Other than an Office of Government, Due date for furnishing Statement of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been extended upto 31st July, 2020.

5. The Due date for Furnishing of Certificate of Deduction or Payment of Tax under Section 192 (Form 16) of the Act has been extended upto 15th August, 2020.

6. No Interest u/s 234A (Interest for defaults in furnishing return of income) of the Act for the F.Y. 2019-20 (A.Y. 2020-21) where Self Assessment Tax is upto Rs. 1 Lakh.

The above mentioned Notification shall come into Force from 30th June, 2020

To View the Notification: CLICK HERE

Modification in the Income Tax Return Acknowledgement (ITR-V) in the Assessment Year 2020-21

The Central Board of Direct Taxes on 29th May, 2020, vide the Notification No. 31/2020, notified the Income Tax Return (ITR) Forms for the Assessment Year 2020-21.

A modification is made in the Income Tax Return Acknowledgement (ITR-V). Until the Assessment Year 2019-20, the Acknowledgement reflected the Taxable Income and Tax Details after filing the Income Tax Return Form. Once the return was verified (by the prescribed modes), the mode and details of verification were added to the Acknowledgement.

However, for the Assessment Year 2020-21, The Taxable Income and Tax Details (Along with Dividend Distribution Tax Details and Accreted Income & Tax Details) will be reflected only after the Assessee verifies the Income Tax Return through the prescribed modes. Until the verification of the return, only the e-filing acknowledgement number along with Basic Details (Name, PAN, Section of Filing and Form Number) will be reflected.

The Prescribed modes of verification of the Income Tax Return are as follows:

  1. Signed Copy of the ITR-V  to Centralized Processing Centre, Income Tax Department, Bengaluru – 560 500, by ORDINARY POST OR SPEED POST ONLY.
  2. Aadhaar OTP.
  3. Login to e-filing account through Net-Banking login.
  4. EVC obtained generated using Pre-Validated Bank Account/Demat Account.
  5. EVC generated through Bank ATM.

To view the ITR-V (Notified by CBDT) : CLICK HERE

Notification of Income Tax Return Forms for the A.Y. 2020-2021.

Vide Notification No. 31/2020 of the Income Tax Act, 1961, the Central Board of Direct Taxes (CBDT) has notified the Income Tax Return (ITR) Filing Forms for the Assessment Year 2020-21.

As announced earlier by the Hon’ble Finance Minister of India, The due date for filing the Income Tax Return for the A.Y. 2020-21 has been extended to 30th November, 2020.

To view the Notification: CLICK HERE

COVID-19: Extension of Due dates and Relief in Compliances

As the nation is amid country wide lockdown, the Economy is severely affected. To mitigate the Financial and Economic impact of COVID-19, The Honorable Finance Minister of India, Mrs. Nirmala Sitharaman Ji held a Press Conference on 24th March, 2020 and made several announcements relating the various sectors like Income Tax, Goods and Services Tax, Customs, Financial Service and Corporate Affairs where various Due dates of the relevant statutes are extended along with relief in reduced Interest Payment and Nil Late Fees and various relief in the Compliances to the Corporate Sector.

Clarification in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Section 269SU (Acceptance of payment through prescribed electronic modes) of the Income Tax Act, 1961 was inserted vide the Finance Act (No. 2) of 2019.

The Section states that:

Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.

The prescribed modes are as follows:

i. Debit Card Powered by Rupay.

ii. Unified Payment Interface (UPI) (BHIM-UPI)

iii. Unified Payment Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).

Now, as per Circular No. 12 of 2020 of the Income Tax Act, 1961, it is clarified that provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transaction s (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year, including amount received for sales, turnover or gross receipts, are by any mode other than cash.

To read the Circular: CLICK HERE

Reduction in TDS and TCS Rates by 25% – A Big Enhancement to Liquidity upto Rs. 50,000 Crores

Vide various relief measures announced by Hon’ble Finance Minister of India, Smt. Nirmala Sitharaman Ji on 13th May, 2020, one such relief is Tax Deducted at Source (TDS) rates for all non-salaried payment to residents, and Tax Collected at Source (TCS) rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20-21. This willprovided liquidity to the tune of Rs 50,000 Crores. 

To View the detailed Chart, CLICK HERE.