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- Government extends the last date of filing the ITR for FY 2019 to June 30, 2020
- What does this decision mean to you? Read it in this post!
The Central Board of Direct Taxes (CBDT) will soon notify the compliance relaxations that also include the 3-month time till June 30 to file the Income Tax Return (ITR). The Union Finance Minister had announced various compliance relaxations including under the income tax, last week.
How Will the Extension Benefit You?
The extension will benefit the ones who have not filed their ITR for FY 2018-19. The last date for them was August 31, 2019. If they have not done that, they could have filed it till March 31, 2020, but with a late fee on it. Considering the difficulties that the Covid-19 outbreak has caused, the finance ministry has extended the last date to June 30, 2019. But the thing that remains the same is the late fee.
How Much Will be the Late Fee?
The late fee for individual taxpayers filing their ITR for FY 2018-19 by June 30, 2020, is fixed at INR 1,000 if their income remains upto 5 lakh. If it exceeds 5 lakh, the fee will rise to INR 10,000. The fees are applicable under Section 234F of the Income Tax Act, 1961. Besides the late fees, if the tax remains due, the taxpayers will need to pay interest, if applicable, on the due amount. The interest is levied for a period from September 1, 2019, to the date of filing the ITR. Usually, a 1% interest is levied by the tax authorities. But the payment made between March 31 and June 20 will bear a lower rate of 0.75%.
Submission of Form 12B is Vital for Employees
All those wanting to switch to a new job need to submit a duly filled Form 12B to the new employer at the time of joining. The form is meant to declare income, deductions and exemptions considered by the previous organization as well as the taxes already deposited. As a result, the new employer can calculate the tax it can deduct at the correct date.
In the absence of Form 12B, the new employer will most likely give the basic exemption benefit again while computing the tax on salary. This will mean a double benefit and result in a shortfall of TDS at the time of the ITR filing. As a result, the employee will have to pay the balance tax along with interest.
What Did the Government Actually Do Last Week?
The government had extended the due dates for the issuance of notice, notification, intimation, approval order, sanction order, appeal filing, furnishing of return, applications, statements, reports, as well as any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer to June 30, 2020.
A Detail of the Tax Acts for Which the Extension Will be Applicable
The extension will apply to investments made in tax-saving instruments, such as Equity-linked Savings Scheme (ELSS), Public Provident Fund (PPF), National Savings Certificate (NSC), National Pension Scheme (NPS) and Life Insurance Policies, under income tax act and other acts such as Prohibition of Benami Property Transaction Act, Wealth Tax Act, Black Money Act, STT Law, Vivad se Vishwas Law and Equalization Levy Law.
What Does the Extension Mean to You?
The extension means individuals can invest in tax-saving instruments such as ELSS, PPF and other 80C products to get tax rebates by June 30, 2020.