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

Table of Contents

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:-

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:

Provision

Income Tax Rule, 1962.

Previous Due Date

New Due Date

The Statement of Financial Transactions for the Financial year 2020-2021.

114 E

31st May,2021

30th June,2021

The Statement of Reportable Account for the calendar year 2020.

114 G

31st May,2021

30th June,2021

The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-2021.

31 A

31st May,2021

15th  July,2021

The Certificate of Tax Deducted at Source in form no. 16.

31

15th July, 2021

31st July, 2021

The TDS/TCS Book Adjustment Statement in Form no. 24g for May 2021.

30

15th June, 2021

30th June, 2021

The Statement of Deduction of Tax for the Financial Year 2020-2021.

33

31st May, 2021

30th June, 2021

The Statement of Income paid or credited in Form no. 64D for the previous year 2020-2021.

12CB

30th June, 2021

15th July, 2021

The Statement of Income paid or Credited in Form no 64C for the previous year 2020-2021.

12CB

15th July, 2021

31st July, 2021

Due Date of Furnishing of Return of Income for Assessment Year 2020-2022.

Section 139(1)

31st July, 2021

30th September, 2021

Due Date of Furnishing of Report of Audit for the previous year 2020-2021.

Under any provision of the Act

30th September, 2021

31st October, 2021

Due Date of Furnishing Report from an Accountant for the previous year 2020-2021.

Section 92E

31st October, 2021

30th November, 2021

Due Date of Furnishing of Return of Income for Assessment Year 2021-2022.

Section 139(1)

30th November, 2021

31st December, 2021

Due Date of Furnishing of Return of belated/revised Return of Income for Assessment Year 2021-2022.

Section 139 (4)/ 134(5)

31st December, 2021

31st January, 2022

Last Date for filing an objection to Dispute Resolution Panel and Assessing Officer

Section 144C 

1st June, 2021

31st August, 2021

Application for registration/provisional registration/intimation/provisional 

Approval of Trusts/Institutions/ Research/ Associations etc.

Section 10(23C), 12AB. 35(1)(ii)(iia)/ (iii) and 80G

30th June, 2021

31st August, 2021

Compliances for claiming any exemptions.

Section 54 to 54GB

1st April, 2021 to 29th September, 2021

30th September, 2021 

Quarterly Statement in Form No. 15CC.

37 BB

15th July, 2021

31st July, 2021

Equalization Levy Statement in Form No. 1 for Financial Year 2020-2021

__________

30th June,2021

31st July 2021

Annual Statement in Form no. 3CEK for Financial Year 2020-2021

Section 9A(5)

29th June, 2021

31st July 2021

Uploading of the Declarations in Form no. 15G/15H.

___________

15th July, 2021

31st August, 2021

Exercise of Option to withdraw pending application in Form No. 34BB.

Section 245M(1)

27th June, 2021

31st July, 2021

Linkage of Pan with Aadhaar.

139AA

30th June,2021

30th September,2021

Payment of Amount under Vivad se Vishwas without additional amount.

___________

30th June,2021

31st August, 2021

Payment of Amount under Vivad se Vishwas with an additional amount.

____________

__________

31st October,2021

Passing of Assessment Order

____________

30th June,2021

30th September, 2021

The passing of Penalty Order

____________

30th June,2021

30th September, 2021

Processing Equalisation Levy Returns

___________

30th June,2021

30th September, 2021

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


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