The FM, announced various direct tax related measures for taxpayers. This was announced by Finance Minister Nirmala Sitharaman today while sharing the details of the stimulus package announced by PM Narendra Modi to revive the economy on Tuesday.
Good news for taxpayers who are yet to file their income tax return for FY 2019-20. The income tax return filing deadline for FY19-20 has been extended to November 30. This was announced by Finance Minister Nirmala Sitharaman today while sharing the details of the stimulus package announced by PM Narendra Modi to revive the economy on Tuesday.
The FM, in her press conference today, announced various direct tax-related measures for taxpayers. The FM said, “Due date for all income-tax return for FY 2019-20 will be extended from 31 July 2020 to 30th November 2020 and tax audit from 30th September 2020 to 31st October 2020.”
Experts say as the government had earlier extended the deadline from June 10, 2020, to June 30, 2020, for receiving the Form-16, this relief for taxpayers was expected.
Archit Gupta, Founder, and CEO, ClearTax says, “Extension of tax filing deadline was expected due to extension of dates to claim tax benefits for FY 2019-20. There will also be a likely extension for providing Form 16 by employees. All of this requires the date of return submission to be extended.”
The extension of the due date of ITR from existing 31st July and 31st October to 30th November 2020, experts say will give a significant time post lockdown to taxpayers to compile their data required for preparation of income tax return. Gopal Bohra, Partner, NA Shah Associates LLP says, “The extension of the due date will also enable the taxpayer to defer the payment of self-assessment tax (not more than 10 per cent of the annual tax liability) without attracting any interest thereon.”
Further, senior citizens, who do not have business income, are not required to pay advance tax and required to pay annual tax by way of self-assessment tax at the time of filing ITR. Bohra adds, “Now due to extension of due date for filing income tax return from 31st July to 30th November, senior citizens will be able to defer payment of self-assessment tax by four more months.”