This article is written by Shreya Roushan, pursuing Certificate Course in Introduction to Legal Drafting: Contracts, Petitions, Opinions & Articles from LawSikho.

Introduction

Due to the spread of the COVID-19 pandemic in India, certain relaxation provisions for extending the due date of various Income Taxes are undertaken by the Ministry of Finance under the Department of Revenue through the Central Board of Direct Taxes, as many hardships are faced by various stakeholders. Since India is severely hit by the pandemic, the due date has been continuously extending due to this reason, several notifications are issued by the Government of India under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020) which concerns The Income Tax Act 1961 and The Finance Act 2016, dated 31st December 2020, 27th February 2021, 31st March 2021, 27th April 2021 and the latest notification was issued on 25th June 2021. The relaxations notified by the most recent notification number 74/2021, dated 25th June 2021, are stated as follow.

Relaxations under Income Tax Act, 1961

1. Relaxation brought under completion of any action under the clause(a) of Sub-section (1) of Section 3 of The Taxation Act and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, such as completion of the proceeding, passing off any order or issuance of any notice, intimation, notification, sanction, approval etc. are following:

1. For assessment or reassessment and time limit for completion of above-mentioned action under Section 153 or 153B of the Income Tax Act 1961, the date has been extended to 30th September 2021, which earlier was 30th June 2021 as extended by previous notification no. 38/2021, dated 27th April, 2021,
2. For the imposition of penalty under the income tax act 1961 following relaxations are provided:-

• For completion of imposition of penalty, the last date is extended to 29th September 2021, which earlier was 29th June 2021 extended by notification no. 10/2021, dated 27th February, 2021.
• For extension of time limit for completion of imposition of penalty, the last date is extended to 30th September 2021 from 30th June 2021 as extended by notification no. 10/2021, dated 27th February, 2021.

2. The time limit for compliance of any action, under clause (b) of sub-section (1) of Section 3 of The Taxation Act and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, such as filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record which under Section 139AA of The Income Tax Act 1961 requires intimation of Aadhar number to the prescribed authority, is extended to 30th September 2021, which earlier was 30th June, 2021 extended by notification no. 20/2021, dated 31st March 2021.

Relaxations under Finance Act, 2016

1. Completion of any action as referred to in clause (a) of sub-section (1) of Section 3 of The Taxation And Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, such as completing any proceeding or passing off any order or issuing of any notice, intimation, notification, sanction or approval, any other action by any authority, commission or tribunal which requires sending and intimation under sub-section (1) of Section 168 of The Finance Act, (which deals with the processing of statement in a particular manner) extension for completion of which is made till 30th September 2021, earlier it was 30th June 2021 as extended by notification no. 38/2021, dated 27th April 2021.

Following is a table depicting the new due date of various taxes extended through several notifications during the pandemic.

Section	Notification Dated- 31st December 2020. Extended Date	Notification Dated- 27th  February   2021. Extended Date	Notification Dated- 31st March 2021. Extended Date	Notification Dated- 27th April 2021. Extended Date	Notification Dated- 25th  June 2021. Extended Date
153 or 153B of the Income Tax Act 1961.	___________	30th April 2021	___________	30th June 2021	30th September 2021.
Imposition of Penalty under chapter XXI of the Income Tax Act 1961. (For completion of action)	___________	29th June 2021	____________	___________	29th September 2021.
Imposition of Penalty under chapter XXI of the Income Tax Act 1961. (For extension of completion.)	___________	30th June 2021	_____________	___________	30th September 2021.
139AA of The Income Tax Act 1961.	___________	___________	30th June 2021.	_________	30th September 2021.
168(1) of The Finance Act, 2016.	___________	___________	30th April 2021.	30th June 2021.	30th September 2021.
Direct Tax Vivad se Vishwash Act, 2020.	30th March 2021.	___________	____________	___________	________
Section 26 of Benami Property Transaction Act, 1988	___________	30th September 2021	_____________	___________	________
Section 148 of the Income Tax Act, 1961.	__________	___________	31st March, 2021, for completion of the action and 30th April, 2021, for completion of such action.	30th June, 2021, for completion of the action.	________

Ministry of finance under the Central Board of Direct Taxes, through its press release dated 20th May 2021 and 25th June 2021, extended timelines for various compliances under the Income Tax Act, 1961, which of the following:

Conclusion

Apart from extension in the timeline of compliance government also provided for exemption of taxes on covid treatment expenditure and ex-gratia received on the death of the taxpayer due to covid-19 pandemic, through its press release, dated 25th June 2021. These exemptions on taxes and extension of the time limit of the due date of various income taxes are boons in this era of the pandemic, not only for the individual taxpayers but also for companies. In the case of individual taxpayers, these extensions and exemptions have eased the burden on them and reduced their stress. With regard to companies, these extensions and timelines of payment of taxes helped to avoid problems such as laying off workers due to inability to pay them, as well as inability to pay to the suppliers, and in worst-case scenario prevented them from closure or bankruptcy in these trying times. Apart from these issues, companies also have to deal with cash flow problems. Thus, these decisive actions of the government have helped taxpayers by giving them additional time to deal with tax affairs, which may enhance taxpayer services in future and which might lead to a revival of the economy in a more structured way in post covid era. Thus, these are welcome moves by the Government under the Ministry of Finance to reduce/share the burden and stress of its citizen and various other stakeholders in these trying times.

References

• https://www.taxmann.com/post/blog/6171/revised-time-limits-for-various-compliances-under-the-income-tax-act/#_ftn1
• https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/936/PressRelease_Government_extends_certain_timelines_in_light_of_severe_pandemic_20_5_21.pdf
• https://www.incometaxindia.gov.in/communications/notification/notification_38_2021.pdf
• https://www.incometaxindia.gov.in/communications/notification/notification_20_2021.pdf
• https://www.incometaxindia.gov.in/communications/notification/notification_10_2021.pdf
• https://www.incometaxindia.gov.in/communications/notification/notification_93_2020.pdf
• https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/945/PressRelease_Government_grants_further_extension_in_timelines_compliances_25_6_21.pdf
• https://www.incometaxindia.gov.in/communications/notification/notification_74_2021.pdf

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