ITR, Belated Income tax Return Filing AY 2021-22: Budget 2021 has proposed to extend the ITR filing due dates for a certain category of taxpayers whose accounts need to be audited. The timeline for filing belated/revised returns has also been proposed to be reduced from April 1, 2021.
As per the Budget documents released by the Finance Ministry, the due date for the filing of original return of income has been proposed to be extended to 31st October of the assessment year in case of spouse of a partner of a firm governed by Portuguese Civil Code.
The Portuguese Civil Code is applicable only in Goa and the Union territories of Dadra & Nagar Haveli and Daman & Dui.
Section 5A of the Income Tax Act provides for the Portuguese Civil Code. As per this code, any income earned by a partner of a firm, whose accounts are required to be audited, should be apportioned between the spouses and included in their total income.
“…it is proposed that the due date for the filing of original return of income be extended to 31st October of the assessment year in case of spouse of a partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force, if the provisions of section 5A apply to them,” the Budget documents said.
The due date for a partner of a firm, which is required to furnish a report from an accountant for entering into an international transaction or specified domestic transaction, has also been proposed to be extended to 30th November.
Belated return time reduced
As per sub-sections (4) and (5) of Section 139 of the Income Tax Act, belated or revised returns can be filed before the end of the assessment year or before the completion of the assessment, whichever is earlier.
Budget 2021 has proposed to reduce the last date of filing of belated or revised returns of income by three months.
“… the belated return or revised return could now be filed three months
before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier,” the Budget documents said.
The above-proposed changes will be effective from April 1, 2021 and accordingly apply for the assessment year 2021-22 and the subsequent assessment years.