Tax saving investment for FY20 can be made till July 31

Our Bureau New Delhi | Updated on June 24, 2020 Published on June 24, 2020

PAN-Aadhar linkage date extended to March 31

The Finance Ministry on Wednesday said that one can invest money in tax-saving tools such as National Saving Certificate (NSC) or Public Provident Fund for FY 2019-20 till July 31.

Tax assesses will get one more month time to file income tax returns for FY 2018-19 and FY 2019-20.

The date for linking of Aadhaar with PAN will now be March 31 as against June 30. These are among various compliance measures for which the last date has been extended again.

According to a statement by Finance Ministry, the date for making various investment/payment for claiming deduction under Chapter-VIA-B of the IT Act which includes section 80C (LIC, PPF, NSC, etc), 80D (Mediclaim), 80G (Donations), etc has been further extended to July 31. Hence the investment/payment can be made up to July 31 for claiming the deduction under these sections for FY2019-20.

The time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY or Assessment Year 2019-20) has been extended to July 31. Due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to November 31. Hence, the returns of income which are required to be filed by the July 31 and October can be filed till November 30. Consequently, the date for furnishing tax audit report has also been extended to October 31 from September 30.

Relief for middle class

In order to provide relief to small and middle-class taxpayers, the date for payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is up to ₹1 lakh has also been extended to November 30.

However, it is clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding ₹1 lakh. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the law and delayed payment would attract interest.

The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been further extended to September 30. The date for commencement of operation for the SEZ (Special Economic Zones) units for claiming deduction under deduction 10AA of the IT Act has also been further extended to September 30 for the units which received necessary approval by March 31, 2020.

The furnishing of the TDS (tax Deducted at Source)/TCS (Tax Collected at Source) statements and issuance of TDS/TCS certificates are the prerequisite for enabling the taxpayers to prepare their return of income for FY 2019-20, the date for furnishing of TDS/TCS statement and issuance of TDS/TCS certificate pertaining to the FY 2019-20 has been extended only to July 31 and August 15, respectively.

The date for passing of order or issuance of notice by the authorities and various compliances under various direct taxes & Benami Law which are required to be passed/issued/made by December 31has been extended to March 31 next year.

However, the flip side is the reduced rate of interest of 9 per cent for delayed payments of taxes, levies, etc specified in the Ordinance dated March 31, 2020 will not be applicable for the payments made after June 30.

Published on June 24, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.