Extension of the Income Tax Return Deadline

An Overview

As of Thursday, May 20, 2021, the Central Board of Direct Taxes (or CBDT) has chosen to extend the deadline set in place for filing income tax returns (or ITRs) applicable for Financial Year 2020-2021 (Assessment Year 2021-2022). The new deadline in place is September 30, 2021. This move, along with the decision to extend varied tax compliance deadlines (decided prior to this announcement), is owed to the 2^nd wave of the Coronavirus pandemic which has wreaked havoc across the country and has led to the enforcement of varying degrees of lockdowns varying on a state-by-state basis.

Revised Deadlines in Place for FY2020

Due dates for a wide variety of compliances for employers in addition to tax filing deadlines applicable to taxpayers have been delayed keeping in mind the current health crisis. Read on to have a better understanding of the revised last dates of ITR

Regular taxpayersare now re1uired to furnish their return of incomes for Assessment Year 2021-2022 by September 30, 2021, as opposed to the previous income tax return last date which was July 31, 2021.

Audit assessorsare entitled to file their income tax returns by November 30, 2021, as opposed to their prior deadline which was October 31, 2021.

Tax Audit Reportscan now be filed by October 31, 2021 as opposed to September 30, 2021, providing for an extension amounting to 30 days.

Transfer Pricing Study Reportsare now required by November 30, 2021.

Statements of Financial Transactionshave also been extended and are now required by June 30, 2021, as opposed to May 31, 2021.

Statements of Reportable Accounts have also been extended and are now required by June 30, 2021, as opposed to May 31, 2021.

Tax Deducted at Source(or TDS) Statements for the fourth quarter of the financial year 3030-21 have been given an extension with the last date now being June 30, 2021 as opposed to the earlier deadline of May 31, 2021.

Form 16 may now be issued by July 15^th which provides an extension of a month as it was previously required by June 15, 2021.

Now that you have a better understanding of the ITR filing last dates in place, read on to understand why they have been implemented as well as acquire other relevant information pertaining to the same.

Objectives

Various ITR filing last dates have been extended in the hope of reducing the compliance burdens faced by a number of businesses that have been struggling to cope with the current health crisis that has caused a major dip in the functioning of both, the economy and society in general.

This extension is also meant to encourage businesses to move their tax compliance such that it can be performed entirely online as this is vital. Not only can this be done in the comfort of one’s home but it allows for easier processing by the income tax departments as well.

Other Pertinent Information

A new e-filing portal is set to be launched http://incometax.gov.in by the Income Tax Department on June 7, 2021. The present portal in place will not be available to taxpayers and other visitors alike for a period of six days ranging from June 1 to June 6, 2021.

This new e-filing portal will allow taxpayers to file their taxes with greater ease and convenience and is a more modern approach to filing taxes which is the need of the hour.

As per the tax department’s understanding, they have issued over INR 24.792 Crore refunds to over 15 Lakh taxpayers this fiscal year (i.e., in the period between April 1, 2021, and May 17, 2021) thus far. Within this sum, personal income tax refunds worth INR 7,458 Crores have been refunded in over 14.98 Lakh profiles. Corporate tax refunds amounting to INNR 17,334 Crore have been issued to 43,661 taxpayers thus far.

Concluding Thoughts

Keeping in mind the new income tax return deadlines, both, businesses and regular taxpayers alike should have an easier time accounting for hurdles brought on by the 2^nd wave of the Coronavirus pandemic and consequent lockdowns.