Income tax Due Date Extended by www.dhanvijay.com

Belated ITR, tax-saving deadlines, and Aadhaar-PAN, Vivad se Vishwas, extended to June 30, 2020.

Various income tax officials associations, tax Consultants, Political Leaders, Normal Taxpayers, and chartered accountants, since Monday, have been asking the Central Board of Direct Taxes (CBDT) to extend these deadlines because of the lockdowns across various states.

What is in the extensions:-

All of these actions had to be completed by March 31 earlier.

Amid curfews and lockdowns due to the Covid-19 pandemic, the government has decided to extend the deadline for settling tax disputes under the Vivad se Vishwaas scheme without paying any interest and penalty from March 31, 2020, to June 30, 2020. The extension of the deadline means that individuals can now settle their tax disputes by the new deadline without paying any penalty and interest.

Pointwise Extensions:-

1. Compliance deadlines for individuals to June 30, 2020.
2. Linking Aadhaar with PAN, Making investments for tax saving for FY2019-20, settling tax disputes under Vivad se Vishwas sans interest, penalty. All of these actions had to be completed by March 31 earlier.
3. The government has also extended the deadlines for filing a belated income tax return (ITR) for FY 2018-19 to June 30, 2020, from the present one of March 31, 2020.
4. For FY 2018-19, delayed payment for tax payments has been reduced from 12 percent to 9 percent. No extension, For delayed TDS deposit, has been reduced from 18 percent to 9 percent
   
   
   
   
   

Why the deadline extensions were needed:-

Deadline for Vivad se Vishwas: 

This is a direct tax scheme announced in the Budget 2020, for settling the tax dispute between individuals and the tax department. The scheme offers a complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute. Further, if the individual opts for the scheme, then such income tax dispute cases cannot be reopened in any other proceeding by the income tax department or any other designated authority.

Deadline for belated ITR: If the deadline for belated ITR was not extended for FY 2018-19, then taxpayers would have lost the opportunity to file their tax return unless income tax department specifically asks them to. According to the Income Tax Department, wilful failure of filing ITR can lead to prosecution and levy of fines under the Income-tax Act, 1961.

Deadline for PAN-Aadhaar: The Finance Minister, Nirmala Sitharaman, today announced that the deadline to link PAN with Aadhaar has been extended to June 30, 2020. The earlier deadline was March 31, 2020.