Taxation filling Extension of Coronavirus Circumstance

Direct Tax – Income Tax Update:

• The Income Tax Department has set deadlines of 30.06.2020 for investment in tax savings schemes for the financial year 2019-20. Taking advantage of the expanded due date and make savings accordingly.
• Income Tax Department has notified that outstanding income tax refunds of INR 5,204 crores have been paid to 8.2 lakhs of small and medium-sized enterprises (SMEs) in the light of the COVID-19 condition.
• CBDT has explained that a person visited India before 22.03.2020 and could not leave India before 31.03.2020 or quarantined India on or after 01.03.2020 and departed on or before 31.03.2020 or could not leave India before 31.03.2020 due to COVID-19 lockout, the time shall not be considered for the assessment of residential status for FY 2019-20.
• Application of the existing system for the approval/registration of organizations 10(23C), 12AA, 35 & 80 G of the IT Act, 1961 has been postponed until 01.10.2020.
• If the payer has deducted TDS from your income on the basis of ACCRUALS but you have booked that income in the next year as per the Revenue Recognition Principles, CARRY FORWARD may be taxed in relation to that in the next year when the income will be offered.
• CBDT released Order u / s 119 of the Income Tax Act, 1961 to ensure that Form 3CD Clause 30C (GAAR Provisions) and Clause 44 (GST Cost Details) do not extend in the case of tax audits for F.Y. From 2019 to 20.
• Statement by an employee to opt-in the tax scheme (Old/New) for FY 20-21 for TDS deductible to employees will meet the following test: ̈In the case that the amount of tax saved as a result of the reduced tax rate under the New Scheme is less than the amount of tax savings as a result of ‘Salary Level Deductible + HRA Exemption + LTC Exemption + Home Loan Interest + 80C value + 80D’ under the Old Scheme, the employee shall pay the same amount.
• CBDT has explained that, for the requirements of the TDS on salary for the year 2020-21, the employer is expected to acquire from each employee a declaration on the opt-out of the tax scheme (with deductions OR without deductions) and to subtract the TDS for the entire year on the basis of that declaration.
• TDS Returns can also be filed via online mode (without the “fvu” submission to TIN-FC) on the e-filing portal only. Registered as “Tax Deductor” on the filing platform and upload the “fvu” file in zip format by signing with the DSC signature facility. Note-The processing status can only be seen on the Traces Page.
• If you are considering taking advantage of the discounted interest rate of 0.75 percent a month or half of it on TDS expected to be charged between 20.03.2020 and 29.06.2020, select the same only in the following case:  If you have to pay tax on any interest rate debt higher than 13 a cent p.a. Since interest in TDS is disallowed and thus “rate gross-up” must apply.
• Limitation date for assessments on A.Y. 2018-19 is 30.09.2020 for the Assessing Officer (instead of 31.12.2020). So, don’t wait till August or September to collect the assessment data and have the data well in advance.
• In the event that you have obtained a notice from your Regulatory Officer for Interest in respect of FY 2017-18 or thereafter, you must only pay that interest which is applicable to Cash Liabilities and you do not incur any interest in relation to the debt settled by ITC.
• CBDT notified Direct Tax ‘Vivad Ke Vishwas Scheme Rule, 2020’ dated 18.03.2020 and, according to that, Form-1 (form for filing statement) and Form-2 (form for filing obligation) were deployed on the Income Tax Portal.

CONFUSING YEAR-END MARCH VERSUS JUNE 2020:

This is the hug misunderstanding in the minds of Indian citizens. The following items explain some of the issues:

1) FY 2019-20 is not at all extended until 30 June, only the date for other compliances is extended.

2) Late returns or revised returns for the FY 2018-19 can be reported before 30 June.

3) In the financial year 2019-20, salary is taxable only until 31 March and not until 30 June, i.e. the taxability of salary for the full year is considered only until 31 March.

4) Deductions under 80C, 80D, etc. can be obtained by saving before 30 June.

5) New LIC, medical, PPF, NPS, etc. policies adopted by 30 June would be deductible during the year 2019-20.

6) Payment of the premium of the old policies of LIC, medical, PPF, NPS, etc. due by 31 March may be claimed as deduction even if it is paid by 30 June.

7) Residential loan interest is eligible for deduction on an accrual basis, and interest accumulated before 31 March should be available for deduction in the financial year 2019-20. However, payments due until 31 March will be reported as deductions if they have been paid until 30 June.

GOVT NOTIFIED “TAXATION LAW ORDINANCE” TO OFFER RELIEF TO TAXPAYERS ON THE GROUNDS OF “COVID-19”:

• Tax savings Investments for FY 2019-20 under Section 80C, 80D, 80 G, etc. can be made up to 30.06.2020 rather than 31.03.2020.
• Revised and Belated Income Tax Return for FY 2018-19 could be paid before 30.06.2020 rather than 31.03.2020 earlier. Note-Late charges of INR 1,000 (ITR with Income up to INR 5 lakhs) or INR 10,000 (other ITRs) will be imposed as before.
• Advance tax, TDS / TCS required to be payable between 20.03.2020 and 29.06.2020 can be charged before 30.06.2020 at a reduced interest rate of 0.75 percent a month or part thereof.
• Due date Link Date of PAN and Aadhaar was increased to 30.06.2020 rather than 31.03.2020 earlier.
• Deduction of the amounts contributed to the PM-CARES Fund will be allowed at 100 percent without any limitation under Section 80G.

Latest Key Due Date Schedules:

30.06.2020 is the extended date of the Vivad Se Vishwas Scheme requirement for the settlement of cases pending with the appellate authorities without extra charge. Note-100 percent exemption from tax and fine. Only the tax amount in dispute must be paid.

07.05.2020 is the due date for the collection of TDS / TCS for the month of April 2020. Note-Interest at 0.75 percent p.m. Or half of it will be paid in case of delay until 30.06.2020.

30.06.2020 is the current due date for Opt-in Composition Scheme by Current Taxpayers during the year 2020-21 by filing Form GST CMP-02. Note-Taxpayers intending to transfer Ought NOT to register GSTR-3B or GSTR-1 for the months of April, May, and June 2020.

Current Composition Taxable Citizen to file CMP-08 for Q4 (2019-20) by 07.07.2020 instead of 18.04.2020 and file GSTR-4 for FY 2019-20 by 15.07.2020 instead of 30.04.2020.

30.06.2020 is the due date for the TDS / TCS returns to file for Q4 (F.Y. 2019-20).

CBIC extended the filing dates of GSTR-5 (NRTP), GSTR-6 (ISD), GSTR-7 (TDS Deductor), GSTR-8 (TCS Collector) for the months of March, April, and May 2020 to 30.06.2020.

30.06.2020 is the due date of the original/revised income tax return during the year 2018-19.

MCA has declared a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no further fees will be paid during this time due to the late submission of any form submitted during this time.

MCA extended the deadline for registration at the Independent Director Databank Registry for registered Independent Directors from 29.02.2020 to 30.04.2020. * * Update to Rule 6 of the Code of Practice of the Board.

ESIC has expanded to 15.05.2020 the due date of payment of ESI Donation for the months of Feb, 20, and Mar.

EPFO has increased the payment deadline of PF Donation for the month of March from 20 to 15.05.2020.

Extension of Due Dates on 2021-

Income Tax & Goods and services tax – Extension of Due Dates as per Press Release dated 30.12.2020.

Income Tax

Nature of Taxpayer	Extended Due Date of ITR	Extended Due Date of Audit Reports (Tax Audit Report, Transfer Pricing Report etc.)
Taxpayer (including their partners) who are required to get their accounts audited and Companies	15th February 2021	15th January 2021
Taxpayer who are required to furnish report in respect of international/specified	15th February 2021	15th January 2021
Other Taxpayers	10th January 2021	–

Last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31st January 2021

GST

Particular	Extended Due Date
Date of filing GSTR9/9C for FY 2019-20-	28th February 2021

Due date for filing GSTR-9/9C for FY 2018-19 remains same i.e. 31st December 2020 till any further notification (For details, please refer Press Release dated 30th December 2020)

More read:

• Economic package of 20 Lakh crore on the covid crisis
• Denies report on Lockdown 5
• Quarantine Guidelines for all RWA society
• Way to bring back your business on track post COVID-19

The Central Board of Direct Taxes has postponed the following dates for filling/submitting returns and other documents: –

• Income tax Returns for Assessment year 2021-22 (Other Than Tax Audit & of Corporations) can be filed until September 30th, 2021.
• The deadline for submitting a income tax audit report for the FY 2021-22 is October 31, 2021.
• Tax Deducted at Source (TDS) Returns for the fourth quarter of fiscal year 2020-21 can be filed without any additional fees until June 30, 2021.
• Income tax Returns for the Assessment year 2021-22 can be filed up to the 30th of November 2021 in the case of a tax audit and for companies.
• The FY 2020-21 Statement of Financial Transactions (SFT) can now be filed until June 30, 2021.

Also, read the relevant blog;

• Economic package of 20 Lakh crore on the covid crisis
• Denies report on Lockdown 5
• Quarantine Guidelines for all RWA society
• Way to bring back your business on track post COVID-19

Post by Rajput Jain & Associates