The Union government is mulling extension of the deadline for filing Income Tax returns beyond December 31, 2021, CNBC-TV18 reported on December 27, owing to complaints regarding the new I-T portal.
Earlier on December 26, the I-T department informed that over 4.43 crore income tax returns (ITRs) for the 2020-21 fiscal have been filed, including over 11.68 lakh returns filed on December 25.
This comprises over 2.41 crore ITR-1 and 1.09 crore ITR-4 getting filed for FY2020-21 (Assessment Year 2021-22) till December 25, 2021.
“A total of 4,43,17,697 #ITRs have been filed up to 25.12.2021 including 11,68,027 #ITRs having been filed on the day itself,” the department tweeted.
The extended deadline for filing ITR by individuals ends on December 31. The original deadline was July 31, 2021.
Additionally, several industry bodies and associations of chartered accountants have urged the Finance Ministry to extend the due date for filing of income tax returns (ITR) for the assessment year (AY) 2021-22 (that is, financial year 2020-21).
Central Board of Direct Taxes on September 9 extended the ITR-filing due dates for various categories of tax-payers due to COVID-19 pandemic. For individuals and Hindu Undivided Families (HUF), among others, the due date was extended from July 31, 2021 to December 31, 2021. This is applicable to taxpayers who do not have to get their books of accounts audited
The extended date to file ITR for AY 2021-22 is December 31, 2021, but you can file a belated return till March 31, 2022. However, a belated return will attract late-filing fees of up to Rs 10,000 under section 234F.
THE PROCESS OF ELECTRONICALLY FILING INCOME TAX RETURN, THROUGH THE INTERNET, IS KNOWN AS e-FILING
WHO CAN e-FILE?
Individuals
HUF
Companies / BOI / AOP / Firms / Trusts / Local authorities / Artificial juridical person
External Agencies
Tax professionals – Chartered Accountants
Tax Deductors and Collectors
Electronic Return Filing Intermediaries
ADVANTAGES OF e-FILING
ANYWHERE – ANYTIME FILING
EASY, FAST AND SECURE
FASTER REFUNDS
VALUE ADDED SERVICES LIKE
TRACKING OF REFUNDS, 26AS VIEW,
E-MAIL AND SMS ALERTS,
REGARDING STATUS OF
PROCESSING AND REFUNDS
IMMEDIATE ACKNOWLEDGMENT
24/7 ONLINE SERVICE
DEDICATED HELPDESK TO SUPPORT
THE QUERIES OF ASSESSEES
IMPORTANT FUNCTIONALITIES ON THE e-FILING PORTAL
HERE ARE A FEW STEPS ON HOW YOU CAN FILE ONLINE:
ONLINE e-FILING PROCESS(ITR 1 & ITR 4)
LOGIN TO THE e-FILING PORTAL AND GO TO ‘e-FILE’–> ‘FILE INCOME TAX RETURN’
SELECT THE “ASSESSMENT YEAR”, “ FILING TYPE”, ITR TYPE, SUBMISSION MODE SELECT STATUS
CONTINUE IF YOU ARE SURE ABOUT THE ITR TYPE OR YOU CAN CLICK ON “PROCEED” TO HELP FIND YOUR ITR
SELECT REASON FOR FILING & FILL THE APPLICABLE FIELDS OF THE ITR
SELECT VERIFICATION MODE
FILL ALL THE APPLICABLE FIELDS IN THE ITR
ENTER EVC/OPT FOR e-VERIFYING YOUR ITR (OR) SEND THE SIGNED ITR-V TO CPC FOR VERIFICATION
e-FILING OF ITR IS NOW COMPLETE
OFFLINE e-FILING PROCESS
GOING COMPLETELY ONLINE CAN BE DIFFICULT, ESPECIALLY WHEN YOU HAVE MULTIPLE FORMS WITH A LOT OF DATA AND LABORIOUS CALCULATIONS. SO TO EASE YOU IN, THE OPTION TO DOWNLOAD AND THEN UPLOAD A COMPLETED FILE, WITHOUT THE FEAR OF ‘SESSION’ TIME OUT’ IS ALSO PROVIDED.
HERE’S HOW YOU GO ABOUT THE PROCESS:
DOWNLOAD THE APPLICABLE JSON UTILITY FROM THE e-FILING PORTAL
GO TO ‘DOWNLOADS’ -> INCOME TAX RETURNS
DOWNLOAD UTILITY
FILL ALL THE APPLICABLE FIELDS IN THE ITR UTILITY AND GENERATE JSON FILE
LOGIN TO THE e-FILING PORTAL AND GO TO go to E-FILE-> INCOME TAX RETURNS-> FILE INCOME TAX RETURNSE
SELECT THE “ASSESSMENT YEAR”, “FILING TYPE”, ITR TYPE, SUBMISSION MODE
UPLOAD THE GENERATED JSON FILE
ENTER EVC/OPT FOR e-VERIFYING YOUR ITR (OR) SEND THE SIGNED ITR-V TO CPC FOR VERIFICATION
e-FILING OF ITR NOW COMPLETE
e-VERIFICATION
ONCE YOU’VE SUBMITTED YOUR ITR, IT IS IMPORTANT TO VERIFY THE SAME, IN ORDER TO COMPLETE THE FILING PROCESS. e-VERIFICATION IS THE EASIEST WAY OF VERIFYING YOUR ITR, AS IT SAVES YOU THE EFFORT OF SENDING SIGNED ITR-V TO CPC BENGALURU.
HOW TO e-VERIFY
YOU CAN e-VERIFY USING
ELECTRONIC VERIFICATION CODE
AADHAAR OTP OR
BY LOGGING IN THROUGH NET BANKING. EVC MAY BE OBTAINED USING A PRE-VALIDATED BANK ACCOUNT OR A PRE-VALIDATED DEMAT ACCOUNT.
USING DSC
HERE ARE A FEW SIMPLE STEPS TO COMPLETE THE PROCESS:
Login to e-Filing portal and go to ‘e-file’–> ‘Income Tax Return’ –> ‘e-Verify Return’
Click on the ‘e-verify’ link available against the ITR which is to be e-Verified
Select e-Verification, mode as applicable
Enter EVC/OTP for e-Verifying your ITR
e-Verification of ITR is now complete
e-PROCEEDING
GETONLINE AND
GET ON WITH LIFE.
e-Proceeding is an electronic platform for conducting proceedings in an end-to-end manner.
All the notices/intimations/ letters from the department are made available under e-Proceedings, where the assessee would be able to view and submit the response, along with attachments, by uploading the same on the e-Filing portal. This will not only reduce compliance burden on the assesses substantially, but also enable safe storage and tracking of all e-submissions made by the assessee, and make the entire process paperless.
e-FILING VAULT
To shield your e-Filing account against any fraudulent activity or unauthorised access, e-Filing Vault adds a second level of authentication which ensures higher degree of security, compared to a simple user ID and Password.
Higher security options are available for e-Filing Login and Reset Password, through the following options.
NET BANKING
AADHAAR OTP
DIGITAL SIGNATURE
CERTIFICATE (DSC)
BANK ACCOUNT EVC
DEMAT ACCOUNT EVC
THE GRIEVANCES CELL
A single window to raise all your grievances through the e-Filing portal. This window enables taxpayers to address any concern that arises during the filing process or after.
THE GRIEVANCES CELL SUPPORT TEAM
A. Assessing Officer (ITO/ACIT) or Supervisory Hierarchy
B. Centralized Processing Center for TDS returns (CPC-TDS)
C. Centralized Processing Center for Processing Status (CPC-ITR)
D. e-Filing Website Team
E. NSDL
F. Directorate of Systems
G. UTIITSL
YOU CAN RAISE GRIEVANCES THROUGH HOEPAGE– FOOTER — GRIEVANCES OR POST LOGIN THROUGH GRIEVANCES- SUBMIT GRIEVANCES
Sub: REPRESENTATION IN RESPECT TO INCOME TAX RETURNS AND AUDIT REPORT FOR A.Y. 2021-2022 (F.Y.2020-2021)
To , Hon’ble Smt Nirmala Sitharaman Ji Union Minister of Finance , Ministry of Finance , Govt. of India. North Block , NEW DELHI – 110001 Email : fmo@nic.in
To , Shri Tarun Bajaj Hon’ble Revenue Secretary . Olffice of the Secretary ( Revenue ) , North Block , NEW DELHI – 110 001 Email : rsecy@nic.in
To , Shri Jagannath Bidyadhar Mohapatra Chairman, Central Board of Direct Taxes, North Block, NEW DELHI – 110 001 Email : chairmancbdt@nic .in
Greetings from the Tax Bar Association-Bhilwara. !
Tax Bar Association (TBA) established in the year 1990is the first & only Apex Regional Body of Advocates, Chartered Accountants, Company Secretaries, CMA & Tax Practitioners of Bhilwara District Rajasthan, having membership strength of more than 200 professionals.
The prime objective of Association is not only to work for the cause of its professionals but also to educate the public at large and to act as a catalyst between Citizens & Government Authorities. TBA regularly organizes seminars, lectures on tax advocacy and legal awareness across Bhilwara District.
The Income Tax website also known as the Income tax portal is an important link between the Income Tax Department and the taxpayers of the country. It facilitates filing of tax returns, different forms under the Income Tax Act and also, performing other work pertaining to tax assessments such as providing responses to Notices, checking refund status queries, rectification, grievance redressal, filing of appeal before first appellate authority (i.e. CIT Appeal),representation through Video Conferencing, etc. The old income tax website was simple yet efficient in facilitating all the abovementioned tasks.
We take this liberty to representing various burring issues being faced by in respect to new web portal of Income Tax managed by Infosys. The Portal is not allowing any compliance to be done or any past record to be accessed. This is very serious, it is not functioning for the purpose it was designed. Apart from the pandemic, the glitches in the newly launched e-filing site are also giving additional pain to the taxpayers.
The newly launched tax filing portal of the tax department was marred with technical issues from day one of its launch. Many tax fillers were finding it difficult to file their returns using the portal. Various stakeholders complained of issues faced during different stages of the filing process.
The pandemic situation is still prevailing with new version of Omicron in several parts of the country and many taxpayers are under distress and there are multiple lacunas, issues in the functions of the new portal, there are few issue which are yet to be operational and stakeholders are left with no choice but to wait.
We take this liberty to representing various burning issues being faced by stakeholders for compliance in respect to furnishing Income Tax Return due to following hardships:
(1) The Income Tax Department launched its new e-filing Portal on June 7, 2021 with objectives of ease of tax compliance speedy, easier and more importantly hassles free. However in spite of several representations, meeting with the higher authorities of the web portal developer, it seems to have been no improvement in the e-filing portal. So Many Tax payers across the country and tax professionals have facing hardship since the launching of e-filing portal for various compliances.
(2) The utilities for ITR-1, ITR-2 and ITR-4 have been notified but have many problems and frequently changes in the schemas and utilities. Also, utilities ITR-5, ITR-6, and ITR-7 have been notified lately and not properly functional and tax payers’ facing hardship for filing of such return due to new web portal. It is pertinent to note that ITR 5 was updated on 9th December, 2021 and ITR 6 on 3′d December, 2021. Even the Income Tax Audit Forms 3CA, 3CB and 3CD latest version was released on 9th December, 2021. The software companies also take time to update the same and hence the filling gets delayed.
(3) In case ITR-6 for Companies Return, the companies opted for concessional Tax u/s 115BAA or 15BAB last year, The Portal is not allowing the filing of ITR and is asking for filing of Form 10-IC again but not allowing its filing companies are facing problems in filing Form 10-IC if they have chosen to pay concessional tax at the rate of 22 per cent under section115BAAof the Income Tax Act.
(4) The Portal is not allowing filing Form 10-IE in many cases and showing unknown reasons in case of ITR-3, (for the assesses declaring Income from Salary, Business, Capital gain and Other Sources) if the assesses opted for concessional tax under section 115BAC, the portal is not allowing the filling of ITR and is asking for filling of Form 10-IE again but not permitting to file the same.
(5) Charitable Organizationis required to furnish Audit Report in prescribed Form 10B u/s.12A (b) of the Income Tax Act, 1961, the Charitable Organizations and Auditors are facing hardship in respect furnishing Audit Report in Form No. 10B. The web portal is not allowing and not accepting Audit Report in Form No. 10B in many cases which causes much hardship. Accordingly it will be very hardship for filing of Income Tax Return without furnishing Form No. 10B and consequently non furnishing of Income Tax Return before due date cause non availability of exemptions u/s 11 to 12 of the Income Tax Act, 1961. Under such circumstance, we propose to extend the time limit for the filing of Form No. 10B at least for 28th February, 2022.
(6) The extended date for filing of returns for individual taxpayers not covered under tax audit is 31S1 December 2021. Several challenges still remain in the new JSON utility which poses a challenge for individuals to file the tax return within this due date. For instance, there needs to be a quick resolution on errors in the utility related to computation of eligible donation, loss on house property under the simplified tax regime.
(7) There are operational challenges as well, For instances, the e-filing portal is too slow, filing of Form 67 as required for claim of foreign tax credit and resetting the password is still not possible in the absence of an Indian mobile number or net banking. As taxpayers are encouraged to review the information in these forms before filing the returns, an extension of the due date is appreciated on the valid hardships of the Stakeholders.
(8) At present, around 60% people have been able to file their tax returns compared to last year. Hence, more than 3.5 crore tax returns are yet to be filed in the next 7 days, which is a very huge number. Further, the income tax website is also altogether new this year with new things like pre-fill data, Annual Information Statement (AIS), Taxpayer information Summary (TIS) etc. are introduced for the first time.
(9) Introduction of AIS / TIS : In case of individual & HUF assessee Annual Information Statement (AIS), Tax Information Statement (TIS) have been introduced in Oct /Nov 2021 Coordinating with the data on these statements is almost an impossible task as the statement have been introduced after many assesses have finalised their accounts. These statements are faulty in it, as it contains half the information. In many cases the banks have not supplied the full / part of the information. If there are bulk transactions of shares or other transaction then it does not get downloaded or takes too much time to get downloaded. In case of discrepancies in data available it becomes difficult to how to correlate the data with actual figures. It will lead to issues in scrutiny assessments in future. Therefore, it is urged that the basis of AIS, TIS data be started from next assessment year. Those who have already filed ITR before the introduction of A.I.S. are now advised to file a revised return. If CBDT has introduced A.I.S. late on the portal why assessee should file a revised ITR?
(10) That due date of other statutory compliances under the Direct Taxes and Indirect Taxes clashes on the scheduled due date on 31st December, 2021. Due to that the Tax Professional also facing hardship on ground of conflicting with the due date. Further, Due date for filing revised returns is 31′ December for all assessee. However, due to the reasons of new website the due date of filing original returns has been extended. Therefore, the due date for filing revised returns be extended at 3 months from filing the extended due date of filing the original return.
(11) It has been also observed that certain changes in figure in Section 43B column while uploading Tax Audit Reports and loss has not been considered while uploading Income Tax Return wile filing
(12)Due date of Scrutiny Assessment: The due date of scrutiny assessments for A Y 2018-19 & other scrutiny assessments under other sections is 31S1December 2021. Tax professionals find it almost impossible whether to file ITR’s, Tax audit reports, GSTR-9, GSTR-9C audit or to comply with the scrutiny assessments in the given time.
(13) New ITD Portal is still not fully functional at its 100% level as it is not a glitch free portal where still many issues are encountered by many people filing multiple ITRs u/s 139(1) for the same PAN, Incorrect upload of JSON files of one PAN in some other PANs, unable to download Income Tax acknowledgements and/or ITR forms after filing, validations of ITR Forms, Frequent changes in ITD utilities, Login Issues, time consumed in processing and generating, even after processing of ITR on real time basis, Income Tax Refund payable is shown as awaited, Mismatch in PAN Data when there is no mismatch, PAN Account locking even when PAN Number is active, Filing of Refund Reissue Requests, DSC validation issues, Bank account validation issues, New PAN registrations issues, New Registration of trust and societies, Data saving issues on ITD Portal etc.
(14) Some issues still persist from the day one like smooth functioning of Rectification applications, filing of ITR perusal to Notice u/s 139(9), incorrect processing of intimations u/s 143(1), updating of UDIN to map with documents filed on ITD website and so on;
(15) Issues in Appointment of auditors, Rejection of incorrect audit reports uploaded, reappointment of auditors for filing of original audit reports or revised audit reports and so on;
(16) Issues in filing of ITR Returns as Representative Assesses as Legal Heirs, mentally incapacitated person or person of unsound mind and Official Liquidators, etc.
These hindrances are making it very difficult for the Assesses, the Chartered Accountants and the Tax Practitioners to comply with even the extended due dates. It is therefore urged that extension for filing of various returns & compliances for AY 2021-22 be granted as follows:
We assure you our best possible co-operation in re-building our most beloved motherland.
Thanking you and obliged.
Yours truly
For and on Behalf of
Tax Bar Association, Bhilwara (Rajasthan)
CA K C TATER President Mob-9829192198
CA RAKESH SOMANI
Secretary
mob-9414019412
CC:
To, 1. Hon’ble Pr, Chief Commissioner of Income Tax, Rajasthan New Central Revenue Building Statue Circle, Janpath JAIPUR-302005
Kindly refer to our representation letter No. CAAS/Representations/2021-22/05 written exactly 6 months ago, w.r.t. help that we can afford to the nation in the hour of a national catastrophe in the form of denial of service by Income Tax Portal. Also, we had suggested various ways to tackle the issue and remove hardships to the tax payers, tax professionals and their employees (“the Stakeholders”). However, your good office had chosen the path of availing help from closed group task force consisting of 7 members from ICAI. While we are glad that our alma mater was chosen for getting the solution, we are deeply saddened by the inability of the Ministry to use the inputs received from the said task force and till date no tangible benefits have accrued to the stakeholders.
As per the response to one of the RTI done by CA Saurin Shah, the Directorate General of Income Tax (Systems) had vide Order No.ADG(S)-3/ITO(S)-3/RTI/2020-21/1046 dt.05/07/2021 has admitted that the task of ”development, implementation and requirement based upgradation of website and extending services of filing and processing of Forms/Returns” was awarded to Infosys Ltd for its bid of Rs.3300 Crores in January 2019, based on preliminary assessment (Source: Central Public Procurement Portal CPPP & pmindia.gov.in) (Copy Enclosed). Sanctioned amount is Rs.4242 Crores, which is the maximum amount that the department can spend. Actual cost of project is not disclosed and is based on work performed. The scope of work is only available to the bidders and is confidential. Further as per the said RTI it is stated that over 5.75 Crore ITRs of AY 2020-21 were processed in the new system. So, if contract was awarded in January 2019, then even after passing of 36 Months (3 Years):
the front end of the new portal shows brainless design with various missing drop down menus, buttons and missing notifications;
the backend database frequently looses data of various forms filed by the stakeholders;
the migrated data of digital signatures is totally lost and stakeholders took enormous pains to replenish the database with digital signature mappings again;
the overall website developed is pathetic and hapless;
During these 3 years, the IT Department + the hired agency has not taken the task of development seriously and instead developed a portal of a quality which can even be developed by college students in their summer projects. This shows, either a severe cost cutting at the agency’s end in the development and implementation part OR a flawed requirement with wavering mindset provided by the Income Tax Officials to the development agency.
The nation has seen the drama of summoning the CEO of one of India’s largest software company by your office, yet has repeatedly failed to deliver concrete results till date. The previous website developed by TCS was implemented in 2005-06, in an era when software development tools were scarce, still it was implemented in a matured manner. However, in today’s fast-moving Dev-Ops friendly, rapid development and deployment era, such a huge gestation period to implement a stable website is highly questionable and suspicious too. This is especially so when the above RTI clarifies that there is a mechanism to levy penalty on the development agency, but no penalty has till date been levied. Why no accountability has been set either on the Government Officials or the agency responsible for the ruckus caused due to the indecisiveness or incomprehensiveness of the personnel causing larger harm and hardship to the people, the treasury and the nation at large.
For a powerful government of a powerful country like India with powerful IT Companies, it is rather shameful to note that the stakeholders are at the mercy of a flawed piece of technology, and are working day and night for futile exercises like registering and re-registering on the new portal, updating details, digital signatures and missing documents. Tax Professionals are made unpaid beta testers without any reward or recognition, wasting huge time resource and making working standards of the stakeholders miserable. We re-iterate that most tax professionals and their staff have developed hypertension, insomnia, diabetes, liver and cardiac diseases, on account of their sedentary work environment. Similar is the condition of employees of the client staff. People are held hostage in a cyber-world with ransom in the form of Late Fees and Interest and a threat to levy penalty or to initiate prosecution. No other words better describe the situation than the term “Tax Terrorism”.
It is to be noted that all actions of the Income Tax Department are dependent only on one primary document – “The Income Tax Return”. Every other form is directly or indirectly linked to the IT Return. On one hand when utilities for IT Return are coming in late and IT Portal is throwing unimaginable and unexplainable errors, stakeholders are at a stress to fulfil their statutory duties casted upon them. Upto the date Screenshots and Videos of such errors and glitches can be foundHERE.
Forcing a tax payer to file IT Return in such a hurry may result into his filing being susceptible to errors and omissions. For this hurried but forced behaviour, he may face statutory consequences resulting into penalty and prosecution, not directly resulting from his actions. But this cycle starts only with “The Income Tax Return”. Hence, filing of IT Return has to be as pious and peaceful as a prayer, without any hurry or worry. So, to stop various timelines form emerging and putting nation’s hardworking stakeholders into the cloaks of criminals, a humane, responsible and transparent behaviour is expected from the Finance Ministry.
Our Representation: While we do not demand any extension of due date for filing of Income Tax Returns, considering the present situation, until the IT Portal is not fully functional and glitch-free, our demands are as follows:
1. Compensation: A Complete waiver of
a. Penalty,
b. Interest,
c. Late Fee;
2. Condonation: Delays in filing various statutory forms which are subjected to be filed only through IT Portal should be granted condonation automatically;
3. Immunity: Stakeholders should be granted immunity against any monetary or other consequence that may have the effect of putting the stakeholders into hardship arising on account of IT Portal glitches;
4. Grievance Redressal Committee (GRC): For ensuring that the portal is fully functional and glitch-free, an independent Grievance Redressal Committee to be formed, similar to the one formed under GST. The said GRC consisting of technocrats, technology providers and representatives of stakeholders shall decide and flag-off the IT Portal once all errors and glitches are resolved.
5. Alternative Facilitation: Stakeholders should be alternatively facilitated for submitting forms, either as:
a. JSON file through IT Portal without server-side validation on IT Portal;
b. JSON file through registered email ID; OR
c. PDF File of relevant form duly signed digitally from any email ID;
6. Tendering Process: On the date of switchover of the portals and even couple of years before that, the existing IT Portal developed by Tata Consultancy Services Ltd was fully functional at its peak, error-free and without any glitches, yet the same was retarded abruptly. Also, during the tendering process only 2 bids were received in the tender, yet the tendering process was concluded (Source: Central Public Procurement Portal CPPP & pmindia.gov.in) Copy Enclosed. It is apparent from the records available in the public domain that serious deviations have been made in the tendering process employed for awarding the task of development, implementation and requirement-based upgradation of new IT Portal to Infosys Ltd, for which no one is held accountable till date.
7. Setting up of Accountability: After repeated fiascos of IT Portal, what is the surety that even after repeated due date extensions, stakeholders’ money and efforts shall not continue to be wasted by the unstable portal which looses data frequently. Hence, as discussed above, accountability has to be set amongst the Government Officials as well as the development agency, with punitive measures, including but not limited to imposing penalty, suspension and even termination.
8. Rationalisation of Due Dates: Extension of due dates every year is not a sustainable solution for the stakeholders and industry at large. In the past when the forms were simple, yet a period upto October 31stwas allowed. However, with the introduction of more complex return forms and complicated tech involved in the IT Return filing process coupled with faster processing times claimed by CPC, the present due date structure is insufficient to meet the workload and needs a mid-term review. Thus, we demand that a suitable amendment in the Income Tax Act allowing return filing as follows:
Audit Cases – Upto 30thNovember every year
Transfer Pricing Audit Cases – Upto 31stDecember every year
Trust Returns – Upto 31stDecember every year
Non-Audit Cases – Upto 31stMarch every year
Provided the IT infrastructure is intact, up and running.
9. Legal backing for Citizen’s Charter: As a part of honouring the Citizen’s Charter, we demand that through a suitable amendment in the Income Tax Act, the Citizens Charter be given a legal recognition and any delay in release of IT Return forms and utilities or subsequent update thereof shall have to be compensated by waiver of penalty, interest and late fees without extension of due date, at the cost and expense of the Central Board of Direct Taxes.
We hope that our above demands are reasonable and shall be met soon in the interest of the nation, failing which the actions of the Finance Ministry shall be deemed to be anti-national and against the Republic of India.
Thanks & Regards, For Chartered Accountants Association, Surat. President | Secretary
Encl:
RTI Order No.ADG(S)-3/ITO(S)-3/RTI/2020-21/1046 dt.05/07/2021
Tender Summary Report for Tender ID: 2018_DREV_304174_1 being RFP for Selection of Managed Service Provider (MSP) for Integrated e-Filing and Centralized Processing Center 2.0 Copy to: – (1) Prime Minister, 152, South Block, Raisina Hills, New Delhi – 110011 – for information and appropriate action
Income Tax Quarterly Updates (April 2021 – June 2021)– Including Covid-19 relaxations / updates
Income Tax is the tax that is collected by the Central Government for each financial year levied on the total taxable income of an assessee during the previous year.The Income Tax Act is a comprehensive statute that focuses on the different rules and regulations that govern taxation in the country. It provides for levying, administering, collecting and recovering income tax for the Indian government. It was enacted in 1961.
Income Tax including surcharge (if any) & cess is charged for any person at the rate as prescribed by Central Act for that assessment year. Income-tax Act has provided separate provisions with respect to levy of tax on income received in advance as well as the income with respect of which the amount has not yet been received. A person also has to keep track of his TDS deducted while calculating his final tax liability at the end of the year.
INCOME TAX Circulars in brief:
1. “Compliance Check for Section 206AB & 206CCA”:
The Central Board of Direct Taxes (‘CBDT’), in exercise of powers conferred under section 138 (1) (a) (i) of Income-tax Act, 1961, hereby directs that Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information to the ‘Tax Deductor / Tax Collector’, having registered in the reporting portal of the Project Insight through valid TAN, to identify the ‘Specified Persons’ for the purposes of section 206AB and 206CCA of the Act through the functionality “Compliance Check for Section 206AB &; 206CCA”.To read more: Click Here
2. Government extends tax deadlines, exempts funds received for COVID-19 treatment:
The CBDT has also granted relaxation for uploading Forms 15G/H – declarations to be submitted to banks to avoid deduction of tax on interest earned – for the quarter ended June 30, 2021.
The Central Board of Direct Taxes (CBDT) has extended several income tax-related timelines once again due to the disruptions caused by the pandemic. Individuals who received financial support from their employers, friends or relatives for their COVID-19 treatment will not have to pay tax on the amount received.
3. Breather for reinvestment of gains on property sale:
Those running out of time to reinvest long-term capital gains (LTCG) made on sale of property have got a breather too. If the last date for reinvesting in your case falls between April 1 and September 29, 2021, you now have time till September 30, 2021 to complete the process. As per section 54 of the Income Tax Act, such gains are exempt from tax if the amount is reinvested in another residential property within two years from the date of transfer. Alternatively, they have the option to construct a new property three years from the transaction date. Under section 54EC, they can also invest the gains in specified long-term bonds issued by entities such as National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC) within six months of the transfer.
4. Cabinet gives ex-post facto approval foramendments to Finance Bill, 2021:
The Union Cabinet on Tuesday gave ex-post facto approval to the official amendments to the Finance Bill, 2021, which were aimed at clarifying and rationalising tax proposals for 2021-22. The Finance Bill became the Finance Act, 2021 on March 28, 2021 after receiving the President’s nod. An official release said that the government’s amendments to the Finance Bill, 2021 tried to address the concerns of the stakeholders with regard to the tax proposals for the fiscal.
5. New rules notified for determining deemed consideration for slump sale; key things to know:
Union Budget 2021 introduced significant amendments in the provisions relating to the taxation of slump sale transactions. One of the key amendments is in relation to computation of consideration value for slump sale taxation. Earlier, the consideration actually paid or received on the slump sale was considered for determining the capital gains tax on the sale. CBDT has now prescribed the rules containing the mechanism relating to computation of the FMV in slump sale transactions.
The Finance Act, 2021 has however provided that to compute the tax arising on account of such slump sale, the Fair Market Value (FMV) of the capital assets (being an undertaking or division transferred by way of slump sale) shall be deemed to be full value of the consideration. However, the methodology to compute FMV was not prescribed by the Finance Act, 2021.
Monthly Updates with official links
Monthly Updates / Circulars / Notification – April 2021
Sl.
Particulars of the Notification(s)
File No. / Circular No.
Link(s)
1.
Extension of time lines related to certain compliances by the Taxpayers underthe Income-tax Act 1961
Agreement between the Government of the Republic of India and theGovernment of the Islamic Republic of Iran for the avoidance of double taxation and prevention of fiscalevasion with respect to taxes on income
CBDT authorizes theDirector of Income Tax(Centralized Processing Centre), Bengaluru and Commissioner of Income-Tax (Exemption),Bengaluru for various matters
Procedure for exercise of option under sub-section (1) of section 245M and intimation thereof by furnishing and upload of Form No. 34BB under sub-rule (1) of Rule 44DA of Income-tax Rules, 1962.
TheCentral Government hereby approves M/s Indian Institute of Technology, Bhilai (PAN: AABAI0415K) under thecategory of ‘University, College or other institution’
Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961
Section 144C
01.06.2021
31.08.2021
2
The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21
Rule 31A of the Income-tax Rules,1962
31.05.2021
on or before 15.07.2021
3
The Certificate of Tax Deducted at Source in Form No.16
Rule 31 of theIncome-tax Rules,1962
15.06.2021
on or before 31.07.2021
4
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64Dfor the Previous Year 2020-21
Rule 12CBof theIncome-tax Rules,1962
15.06.2021
on or before 15.07.2021
5
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21
Rule 12CBof theIncome-tax Rules,1962
30.06.2021
on or before 31.07.2021
6
The application in Form No.10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisionalapproval of Trusts/ Institutions/ Research Associations etc.,
UnderSection 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act
30.06.2021
on or before 31.08.2021
7
The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act
Section 54 to 54GB of the Act
Between 01.04.2021 to 29.09.2021
30.09.2021
8
The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect ofremittances made for the quarter ending on 30th June, 2021
Rule 37 BB of the Income-tax Rules, 1962
30.06.2021
31.07.2021
9
The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21
30.06.2021
31.07.2021
10
The Annual Statement required to be furnished bythe eligible investment fund in Form No. 3CEK for the Financial Year 2020-21
Section 9A (5) of the Act
29.06.2021
31.07.2021
11
Uploading of the declarations received from recipients in Form No. 15G/15H during the quarterending 30th June, 2021
Form No. 15G/15H
15.07.2021
31.08.2021
12
Exercising of option to withdraw pending application (filed before the erstwhile Income TaxSettlement Commission) in Form No. 34BB, w
under Section 245M (1) of the Act
27.06.2021
31.07.2021
13
Last date of linkage of Aadhaar with PAN
Section 139AA of the Act
30.06.2021
30.09.2021
14
Last date of payment of amount under Vivad se Vishwas(without additional amount)
30.06.2021
31.08.2021
15
Last date of payment of amount under Vivad se Vishwas (with additional amount)
31.08.2021
16
Time Limit for passing assessment order
30.06.2021
30.09.2021
17
Time Limit for passing penalty order
30.06.2021
30.09.2021
18
Time Limit for processing Equalisation Levy returns
Company Secretary having 6+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.
I Am A Chartered Accountant By Profession, Holding Specialization In Investment And Financial Analysis But Direct Taxation Continues To Be My Passion. Other Feathers In My Hat Include Consulting Businesses And Being A Visiting Faculty For Various Professional Courses.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
The Income Tax Department has extended the deadline for completing many tasks related to income tax for the convenience of taxpayers. In a notification issued by the Ministry of Finance, it has been said that in view of the difficulties being faced by the taxpayers due to Kovid-19, the deadline for tax related work has been extended.
Extended deadline for these compliances
According to Rule 31 of the Income Tax Act, 1962, the last date for issue of TDS certificate has been extended to 31st July, 2021. Earlier the deadline was June 15, 2021.
Under the tax rules, the tax deduction statement for the last quarter of the financial year 2020-21 has to be submitted on or before 15 July 2021. Earlier this date was May 31, 2021.
Statement of payment of income tax on behalf of investment fund or credit to the account of unit holder in Form No. 64D for 2020-21 can be submitted till July 15, 2021. Earlier this date was 15 June 2021.
Statement of payment of income tax on behalf of investment fund or credit to the account of unit holder in Form No. 64C for 2020-21 can be submitted till July 15, 2021. Earlier this date was 30 June 2021.
The option to withdraw the pending application (Income Tax Settlement Commission) can be exercised till 31 July 2021.
This year, the last date for filing personal ITR for 2020-21 has been extended to 30 September 2021 and 30 November 2021 for corporate in the circumstances of Covid.
In view of the second wave of Corona epidemic, the central government has given many concessions to the common man on the income tax front.
Deadline for TDS Return Extended
The last date for submission of TDS statement for the fourth quarter (January-March) of the financial year 2020-21 has now been extended to July 15, 2021, which was earlier June 30.
Deadline extended for issuance of Form-16
According to the order of the Income Tax Department, the deadline for issuing Form-16 has now been extended to July 31, which was earlier July 15.
PAN-Aadhaar Linking Deadline Extended
You now have time till September 30 to link Aadhaar card-PAN.
Extended the deadline of Vivad Se Vishwas scheme
The Central Government has now extended the deadline for making payment without interest under the Vivad Se Vishwas scheme, launched to settle tax-related disputes, till August 31, 2021. This scheme was started in October 2020.
Loan tax free for the treatment of corona
Those who have taken loans from their employers, friends and relatives for the treatment of Kovid-19, they will not have to pay any tax on that amount. If a family member dies due to Kovid, then whatever amount taken from the company will be absolutely tax free. Whereas if the amount up to 10 lakh is taken from a relative for help, then it will be tax free.
Tax relief issued to first time home buyers
Apart from this, the government has given a gift to the first time home buyers. The government has extended the deadline for special tax relief to be received on the investments of such people. Now the residential house will get the benefit of 3 more months of tax deduction. Under Section 54 of the Income Tax, a person sells a house and makes a capital gain from it, but buys another house within 2 years, then he is exempted from tax on it. In such a case, the tax relief will now continue till September 3.
Deadline for Income Tax Return
Apart from this, some deadlines which have already been extended. Individuals can now file tax returns for income earned in the financial year 2020-21 till September 30 instead of July 31. The Central Board of Direct Taxes (CBDT) has extended the deadline for filing returns for companies from October 31 to November 30, 2021. A taxpayer who has not filed his return even after the deadline can file Belated ITR, but for this he will have to pay a penalty. The last date for filing Belated ITR or Revised ITR is now 31st January, 2022.
Central Govt provides further relief to taxpayers during these difficult Covid times by extending timelines of certain compliances. Here is a quick look at the list of compliances that have been extended by CBDT Circular No 12/2021, Notification Nos 74/2021 &75/2021 dt 25.06.2021.
Extension of Time Compliances related to filing of Statements/ Certificate
Extension of Time Compliances related to filing of Statements
Extension of Time Compliances related to Uploading of Declaration/Exercising of option other compliances
Extension of Time Compliances related to filing of objections to DRP and Assessing Officer
Extension of Time Compliances related to passing of order/processing of returns
Extension of Time Compliances related to Vivad Se Vishwas Act, 2020
Extension of Time Compliances related to filing of Statements/ CertificateExtension of Time Compliances related to filing of StatementsExtension of Time Compliances related to Uploading of Declaration/Exercising of option other compliancesExtension of Time Compliances related to filing of objections to DRP and Assessing OfficerExtension of Time Compliances related to passing of order/processing of returnsExtension of Time Compliances related to Vivad Se Vishwas Act, 2020
Govt announces tax exemption for expenditure incurred on Covid treatment &ex-gratia amount recd on death due to Covid. Granting further relief in difficult Covid times, dates of several compliances extended vide Notification Nos 74/2021 & 75/2021 &Circular No 12/2021 dt25.06.2021
Tax Concessions for Payment towards COVID Treatment/Death.
Easing of IT Compliance Burden during COVID
Additional Relief Measures for Income Tax Payers
Many taxpayers & their families have received financial help from employers & well-wishers for COVID-19 treatment or ex-gratia help following COVID-related deaths. To ensure that no income tax liability arises on this account, the following exemptions have been granted
The Board of Direct Taxes (Income Tax Department) vide circular & Press Release No. 1730346 dated 25.06.2021, in exercise of its power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) has issued circular w.r.t. Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic and spike in Covid-19 cases and also announces tax exemption for expenditure onCOVID-19 treatment and ex-gratia received on deathdue to COVID-19:
Extension Table
Sl.
Nature of Extension
Provisions of IT Act 1961
Original Due Date
Extended Due Date
1
Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961
Section 144C
01.06.2021
31.08.2021
2
The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21
Rule 31A of the Income-tax Rules,1962
31.05.2021
15.07.2021
3
The Certificate of Tax Deducted at Source in Form No.16
Rule 31 of theIncome-tax Rules,1962
15.06.2021
31.07.2021
4
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64Dfor the Previous Year 2020-21
Rule 12CBof theIncome-tax Rules,1962
15.06.2021
15.07.2021
5
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21
Rule 12CBof theIncome-tax Rules,1962
30.06.2021
31.07.2021
6
The application in Form No.10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisionalapproval of Trusts/ Institutions/ Research Associations etc.,
UnderSection 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act
30.06.2021
31.07.2021
7
The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming anyexemption under the provisions contained in Section 54 to 54GB of the Act
Section 54 to 54GB of the Act
Between 01.04.2021 to 29.09.2021
30.09.2021
8
The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect ofremittances made for the quarter ending on 30th June, 2021
Rule 37 BB of theIncome-tax Rules,1962
30.06.2021
31.07.2021
9
The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21
30.06.2021
31.07.2021
10
The Annual Statement required to be furnished bythe eligible investment fund in Form No. 3CEK for the Financial Year 2020-21
Section 9A (5) of the Act
29.06.2021
31.07.2021
11
Uploading of the declarations received from recipients in Form No. 15G/15H during the quarterending 30th June, 2021
Form No. 15G/15H
15.07.2021
31.08.2021
12
Exercising of option to withdraw pending application (filed before the erstwhile Income TaxSettlement Commission) in Form No. 34BB, w
under Section 245M (1) of the Act
27.06.2021
31.07.2021
13
Last date of linkage of Aadhaar with PAN
Section 139AA of the Act
30.06.2021
30.09.2021
14
Last date of payment of amount under Vivad se Vishwas(without additional amount)
30.06.2021
31.08.2021
15
Last date of payment of amount under Vivad se Vishwas (with additional amount)
31.08.2021
16
Time Limit for passing assessment order
30.06.2021
30.09.2021
17
Time Limit for passing penalty order
30.06.2021
30.09.2021
18
Time Limit for processing Equalisation Levy returns
30.06.2021
30.09.2021
Clarifications by CBDT:
In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease the compliance burden of taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 & 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021.
Company Secretary having 6+ years of post qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms and LLP. He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.
Disclaimer:Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
The Board of Direct Taxes (Income Tax Department) vide circular No. 09/2021, (F. NO.225/49/2021-ITA-1I dated 20.05.2021, in exercise of its power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) has issued circular w.r.t. Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic and spike in Covid-19 cases:
Extension Table
SrNo
NatureofExtension
Originalduedate
NewDueDates
1
Statement of Financial Transact ions u/s 285BA (SFT)
31.05.2021
30.06.2021
2
Statement of Reportable Account under Rule 114G
31.05.2021
30.06.2021
3
Statement of Tax deduction at source for the quarter ending 3151 March 2021
31.05.2021
30.06.2021
4
Issue of TDS certificates in Form 16 for the Financial Year 2020- 21
15.06.2021
15.07.2021
5
TDS/TCS Book adjustment statement in Form 24G for the month of May 2021
15.06.2021
30.06.2021
6
Statement of Deduction of Tax in the case of superannuationfund for FY 2021
31.05.2021
30.06.2021
7
Statement of Income paid or credited by an investment fund to its unit’s holder in Form 64D for FY 2021
15.06.2021
30.06.2021
8
Statement of Income paid or credited by an investment fundto its unit’s holder in Form 64C for FY 2021
30.06.2021
15.07.2021
9
Income Tax Returns – Normal assessee without audits – FY2021
31.07.2021
30.09.2021
10
Filing of Audit Reports viz. Tax Audit Reports, Form 67 etc. – FY 2021
30.09.2021
31.10.2021
11
Due date of Furnishing Report from Accountant in respect ofInternational Transactions covered u/s 92E
31.10.2021
30.11.2021
12
Corporate assessee or Firm covered whose accounts required to be audited or Partner of Firm whose accounts are required to be audited or any assessee other than Corporate and Firm whose accounts are required to be audited
31.10.2021
30.11.2021
13
Assessee required to furnish return u/s 92E in respect of international Transactions
30.11.2021
31.12.2021
14
Belated Returns and Revised Returns
31.12.2021
31.01.2021
Kindly Note that:Note: all above extensions is planned in view of New ITD portal to belaunched from June 7,,2021.
Clarifications by CBDT:
1. Non – Applicability: the extension of the dates as referred to in clauses(9), (12) and (13) above shall not apply to Explanation 1 to section 234A of the Act, incases where the amount of tax on the total income as reduced by the amount asspecified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakhrupees.
2. For the purpose of Clarification 1, in case of an individual resident inIndia referred to in sub-section (2) of section 207 of the Act, the tax paid by him undersection 140A of the Act within the due date (without extension under this Circular)provided in that Act, shall be deemed to be the advance tax.
Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
Income tax return, tax audit due date & Other dates extended
Circular No. 9 of 2021
F.No.225/49/2021 -ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi,
Dated 20th May, 2021
Subject: Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic
The Central Board of Direct Taxes, in exercise of its power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) provides relaxation in respect of the following compliances:
1) The Statement of Financial Transactions (SFT) for the Financial Year 202021, required to be furnished on or before 315t May 2021 under Rule 114E of the Income-tax Rules, 1962 (hereinafter referred to as “the Rules”) and various notifications issued thereunder, may be furnished on or before 30th June 2021;
2) The Statement of Reportable Account for the calendar year 2020, required to be furnished on or before 31st May 2021 under Rule 114G of the Rules, may be furnished on or before 30th June 2021;
3) The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May 2021 under Rule 31A of the Rules, may be furnished on or before 30th June 2021;
4) The Certificate of Tax Deducted at Source in Form No 16, required to be furnished to the employee by 15th June 2021 under Rule 31 of the Rules, may be furnished on or before 15th July 2021;
5) The TDS/TCS Book Adjustment Statement in Form No 24G for the month of May 2021, required to be furnished on or before 15th June 2021 under Rule 30 and Rule 37CA of the Rules, may be furnished on or before 30th June 2021;
6) The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May 2021 under Rule 33 of the Rules, may be sent on or before 30th June 2021;
7) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June 2021;
8) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July 2021;
9) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st July 2021 under sub-section (1) of section 139 of the Act, is extended to 30th September 2021;
10) The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September 2021, is extended to 31st October 2021;
11) The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October 2021, is extended to 30th November 2021;
12) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October 2021 under sub-section (1) of section 139 of the Act, is extended to 30th November 2021;
13) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November 2021 under sub-section (1) of section 139 of the Act, is extended to 318t December 2021;
14) The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, is extended to 31st January 2022.
Clarification 1: It is clarified that the extension of the dates as referred to in clauses (9), (12) and (13) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees.
Clarification 2: For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under this Circular) provided in that Act, shall be deemed to be the advance tax.
Government extends timelines of certain compliances in light of the severe pandemic
In view of the adverse circumstances arising due to the severe Covid-19 pandemic and also in view of the several requests received from taxpayers, tax consultants & other stakeholders from across the country, requesting that various compliance dates may be relaxed, the Government has extended certain timelines today.
In the light of multiple representations received (supra) and to mitigate the difficulties being faced by various stakeholders, the Central Board of Direct Taxes (CBDT) has, under section 119 of the Income-tax Act, 1961(the Act), provided the following relaxation in respect of compliances by the taxpayers:
a. Appeal to Commissioner (Appeals) under Chapter XX of the Act, for which the last date of filing under that Section is 1st April, 2021 or thereafter, may be filed within the time provided under that Section or by 31st May, 2021, whichever is later;
b. Objections to Dispute Resolution Panel (DRP) under Section 144C of the Act, for which the last date of filing under that Section is 1st April, 2021 or thereafter, may be filed within the time provided under that Section or by 31st May, 2021, whichever is later;
c. Income-tax return in response to notice under Section 148 of the Act, for which the last date of filing of return of income under the said notice is 1st April, 2021 or thereafter, may be filed within the time allowed under that notice or by 31st May, 2021, whichever is later;
d. Filing of belated return under sub-section (4) and revised return under sub-section (5) of Section 139 of the Act, for Assessment Year 2020-21, which was required to be filed on or before 31st March, 2021, may be filed on or before 31st May, 2021;
e. 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 30th April, 2021 (respectively) under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on or before 31st May, 2021;
f. Statement in Form No. 61, containing particulars of declarations received in Form No.60, which is due to be furnished on or before 30th April, 2021, may be furnished on or before 31st May, 2021.
CBDT Circular No.8/2021 in F. No. 225/49/2021/ITA-II dated 30.04.2021 issued. The said Circular is available on http://www.incometaxindia.gov.in.
The above 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.
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