- Date : 26/05/2021
- Read: 3 mins
The CBDT’s latest update on all the major income tax deadlines for this year.
The Central Board of Direct Taxes (CBDT) confirmed on 20 May that the last date for the filing of income tax return (ITR) for the financial year 2020-21 has been extended till 30 September. This is a two-month extension from its original deadline of 31 July. The ITR deadline for companies has also been extended to 30 November, which is a month later than the original date of 31 October.
Apart from these, several other deadlines have been granted an extension. The last date for issuing Form 16 to employees has been extended by a month to 15 July. The due date for filing the tax audit report is now 31 October, while that of filing the transfer pricing certificate is 30 November – both extended by a month.
The last date for financial institutions to file the Statement of Financial Transaction report has also been extended by a month to 30 June. Belated returns can now be filed by 31 January 2022, instead of the earlier deadline of 31 December 2021.
In its statement, CBDT said that the central government acknowledges the hardships faced by people due to the severity of the COVID-19 outbreak and has received representations from stakeholders requesting its consideration. Accordingly, the government decided to extend the deadlines for compliances under the Income Tax Act.
Related: 8 Myths about tax filing debunked
For whom is the 31 July deadline applicable?
The 31 July deadline is applicable for taxpayers who are filing their ITR 1 and ITR 4 returns. ITR 1 can be filed by resident Indians with a total taxable income of up to Rs 50 lakhs, from salary, one house property, other sources, and agricultural income (up to Rs 5000). Such a person should not be a director of a company or shareholder of an unlisted company. ITR 4 can be filed by an individual, HUF, or partnership that has any of the following incomes:
- Business income under section 44AD or AE
- Income from profession under section 44ADA
- Salary or pension of up to Rs 50 lakh
- Gross income of up to Rs 50 lakh from house property
- Income of up to Rs 50 lakh from other sources, excluding lottery and horse racing
- Freelancers with any of the above incomes can also file ITR 4. Different ITR forms you should know about
Related: Income Tax Returns: Who should file them and when?
How will the deadline extension help taxpayers?
The extension is given to ease the compliance burden on taxpayers caused by the pandemic, which has slowed down businesses and activities. With more time allowed for TDS-related compliances like issuance of Form 16, the gap between receipt of TDS information and submission of returns also needs to be maintained.
Related: Guide to filing your income tax return on your own
Should one try to file within the original deadline?
Taxpayers whose total tax liability is not covered by the TDS and advance tax, and whose net liability is above Rs 1 lakh, will have to pay an interest of 1% per month (or part thereof) for the gap between the original deadline and the actual filing date. This interest is charged under section 234A. Such taxpayers may want to stick to the original deadline date to avoid interest costs. Look at these 5 Tips to invest wisely under the new tax regime
The Central Board of Direct Taxes (CBDT) confirmed on 20 May that the last date for the filing of income tax return (ITR) for the financial year 2020-21 has been extended till 30 September. This is a two-month extension from its original deadline of 31 July. The ITR deadline for companies has also been extended to 30 November, which is a month later than the original date of 31 October.
Apart from these, several other deadlines have been granted an extension. The last date for issuing Form 16 to employees has been extended by a month to 15 July. The due date for filing the tax audit report is now 31 October, while that of filing the transfer pricing certificate is 30 November – both extended by a month.
The last date for financial institutions to file the Statement of Financial Transaction report has also been extended by a month to 30 June. Belated returns can now be filed by 31 January 2022, instead of the earlier deadline of 31 December 2021.
In its statement, CBDT said that the central government acknowledges the hardships faced by people due to the severity of the COVID-19 outbreak and has received representations from stakeholders requesting its consideration. Accordingly, the government decided to extend the deadlines for compliances under the Income Tax Act.
Related: 8 Myths about tax filing debunked
For whom is the 31 July deadline applicable?
The 31 July deadline is applicable for taxpayers who are filing their ITR 1 and ITR 4 returns. ITR 1 can be filed by resident Indians with a total taxable income of up to Rs 50 lakhs, from salary, one house property, other sources, and agricultural income (up to Rs 5000). Such a person should not be a director of a company or shareholder of an unlisted company. ITR 4 can be filed by an individual, HUF, or partnership that has any of the following incomes:
- Business income under section 44AD or AE
- Income from profession under section 44ADA
- Salary or pension of up to Rs 50 lakh
- Gross income of up to Rs 50 lakh from house property
- Income of up to Rs 50 lakh from other sources, excluding lottery and horse racing
- Freelancers with any of the above incomes can also file ITR 4. Different ITR forms you should know about
Related: Income Tax Returns: Who should file them and when?
How will the deadline extension help taxpayers?
The extension is given to ease the compliance burden on taxpayers caused by the pandemic, which has slowed down businesses and activities. With more time allowed for TDS-related compliances like issuance of Form 16, the gap between receipt of TDS information and submission of returns also needs to be maintained.
Related: Guide to filing your income tax return on your own
Should one try to file within the original deadline?
Taxpayers whose total tax liability is not covered by the TDS and advance tax, and whose net liability is above Rs 1 lakh, will have to pay an interest of 1% per month (or part thereof) for the gap between the original deadline and the actual filing date. This interest is charged under section 234A. Such taxpayers may want to stick to the original deadline date to avoid interest costs. Look at these 5 Tips to invest wisely under the new tax regime
