FY 2019-20 has already ended on March 31, 2020 and only some compliance dates have been extended till June 30, 2020 and not the Financial Year.
As the Financial Year (FY) 2019-20 ended in the mid of the nationwide lockdown imposed to contain the spread of highly contagious Novel Coronavirus COVID-19, taxpayers have become a thoroughly confused lot after missing several compliance deadlines that resulted into extension in compliance dates overlapping the first quarter of FY 2020-21 and beyond.
With the confusion increasing further after the latest announcement of date extensions by Finance Minister Nirmala Sitharaman, let’s discuss the dates to make the things clear.
- The Income Tax Return (ITR) for the FY 2018-19, which has ended on March 31, 2019, can be filed up to June 30, 2020 after paying applicable late filing penalty.
- On the other hand, for FY 2019-20, the due date for ITR filing for assessees without audit needs has been extended from July 31, 2020 to November 30, 2020.
- FY 2019-20 has already ended on March 31, 2020 and only some compliance dates have been extended till June 30, 2020 and not the Financial Year. So, income earned/due up to March 31, 20202 will only be taxable for the FY 2019-20 and not up to June 30, 2020.
- As the FY 2019-20 ended during the lockdown, many people have missed the opportunity of making tax-saving investments, leading to extending the deadline from March 31, 2020 to June 30, 2020 along with several other compliance deadlines. So, deductions under 80C, 80D, etc. can be claimed by investing till June 30, 2020.
- As a result, payment of premium of old policies of life insurance, health insurance, contributions to Public Provident Fund (PPF), National Pension System (NPS), etc. due upto March 31, 2020 can be claimed as deduction even if paid till June 30, 2020.
- Not only investments in existing instruments, but new life insurance, health insurance policies taken till June 30, 2020 and PPF, NPS and other such accounts opened till that date will be eligible for the deduction for the FY 2019-20.
- Interest accrued on housing loans till March 31, 2020 may be claimed as deduction for FY 2019-20 even if the equated monthly installments (EMIs) are paid till June 30, 2020.