The Central Board of Direct Taxes (CBDT) has decided to extend timelines of various tax compliance dates on Saturday due to the ongoing Pandemic situation. The ministry of finance declared via a statement that in view of the several requests received from taxpayers, tax consultants & other stakeholders from across the country who are requesting that various compliance dates may be relaxed, the Government has extended certain timelines today.
Extension of the timeline of various tax compliances is a welcome move as the country is struggling with severe second wave of coronavirus.With an intention to minimise the difficulties faced by many stakeholders, it further said in a notification that the relaxations are the latest among the recent initiatives taken by the government to ease compliances to be made by the taxpayers with the aim to grant respite during these difficult times.
The extension of deadlines under the Income Tax Act appears to be in line with the Supreme Court Order dated 27.04.2021. There is an extension of timelines for compliance under the GST law as it is the need of the hour because the businesses are striving every month to make tax payments and file returns.The relaxations provided by the CBDT u/s 119 of the Income Tax Act,1961 are as under:
1. CBDT said in a statement that the filing of belated return under sub-section (4) and revised return under sub-section (5) of Section 139 of the Income Tax Act, for Assessment Year 2020-21, which was required to be filed on or before March 31, 2021, may be filed on or before May 31, 2021.
2. Individuals can file Appeal to Commissioner (Appeals) under Chapter XX of the Income Tax Act within the time provided under that Section or by May 31, 2021, whichever is later. The last date of filing under that Section was set at April 1, 2021.)
3. As per the ministry objections to Dispute Resolution Panel (DRP) under Section 144C of the Act, for which the last date of filing under that Section is April 1, 2021 or thereafter, may be filed within the time provided under that Section or by May 31, 2021, whichever is later.
4. Income-tax return in response to notice under Section 148 of the Act may be filed within the time allowed under that notice or by May 31, 2021.
5. The notification said that the payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M of the Act, and filing of challan-cum-statement for such tax deducted, which are required to be paid and furnished by April 30, 2021(respectively) under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on or before May 31, 2021.
6. Statement in Form No. 61, containing particulars of declarations received in Form No.60, which is due to be furnished on or before April 30, 2021, may be furnished on or before May 31, 2021.The time limit to file appeal to Commissioner (Appeals) has been extended to May 31, the time to pay tax demand pursuant to final assessment order has not been specifically extended.The finance ministry earlier relaxed the timeline for payments under the Direct Tax Vivad se Vishwas Act, 2020 (without an additional amount) till June 30, 2021. Launched in 2020, the Direct Tax ‘Vivad se Vishwas’ Act aims to reduce pending income tax litigation and aims at generating timely revenue for the government.
Bhoi Smrutirekha Dharanidhar