Gov Extends Deadline for Filing Income Tax Returns to Sept 30
New I-T slabs to be for individuals foregoing specified deductions while computing total income for tax purpose
The Government on Thursday extended the due date of filing income tax returns for 2020-21 for individuals by two months till September 30.
The Central Board of Direct Taxes (CBDT) has likewise expanded the ITR filing deadline for companies by a month till November 30.
According to the income tax law, for individuals whose records do not need to be audited and who generally document their income tax return utilising ITR-1 or ITR-4 structures, the deadline to record ITR is July 31. For citizens, similar to companies or firms, whose records do need to be examined, the deadline is October 31.
The CBDT pointed out in a circular that the extension of the deadline is for certain duty compliances "to provide relief to taxpayers in view of the severe pandemic".
Additionally, the deadline for issuing Form 16 by employers to employees has been stretched by a month till July 15, 2021, the CBDT said.
The due date for filing the tax audit report and transfer pricing certificate has been extended by a month till October 31 and November 30, respectively. For documenting late or re-examined return of income, the due date is presently January 31, 2022.
The deadline for financial institutions to furnish the Statement of Financial Transaction (SFT) report has been extended till June 30, from May 31, 2021.
Nangia and Co LLP Partner Shailesh Kumar said the expansion of due dates is probably going to give some help to citizens on the tax compliance front.
"However, for taxpayers, whose entire income tax liability is not discharged by TDS and advance tax and such shortfall is more than Rs 1 lakhs, they should endeavour to file their ITR within respective original due date to avoid the charge of interest u/s 234A, which is charged on filing ITR beyond the original due date at the rate of 1 per cent per month for every month/ part thereof after the original due date of filing ITR," Kumar added.
The CBDT had on April 1 signalled forms for documenting I-T returns for 2020-21 financial, and said that keeping in view the ongoing crisis because of the pandemic and to facilitate taxpayers, no critical change has been made in comparison with last year's ITR Forms. The new ITR structures inquire as to whether they are selecting another tax regime.
For the 2020-21 fiscal year, the government had given citizens the choice to pick a new tax regime under segment 115BAC of the I-T Act.
The new I-T sections would be for individuals not benefiting or foregoing certain predefined allowances or exceptions while computing total income for tax purpose.
Under this, annual income up to Rs 2.5 lakh is excluded from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.
Those earning between Rs 10 and 12.5 lakh will be taxed at 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be charged at 30 per cent.