For the financial year of 2020-2021, ending in March 2021, the income tax law allows individual taxpayers to file for ITR-1 or 4 returns by 31st July 2021. The deadline for businesses and firms for filing their tax audit is usually on the 31st October. Due to the COVID-19 pandemic, the income tax department has extended the Income Tax Returns (ITR) filing deadline for the FY 2020-2021.
For 2020-21, the government has also given taxpayers an option to choose a new tax regime under section 115BAC of the I-T Act. In this article, we’re going to cover the new ITR filing deadlines and new Tax regime.
The extended timelines are aimed to ease the pressure on taxpayers. The relaxations will reduce the compliance burden for businesses that have been struggling due to the pandemic. Considering that the second wave is raging, it is only right that the income tax department takes these measures.
What are the new deadlines for filing income tax returns?
Individuals can file for the ITR earned during FY 2020-2021 by 30th September according to the new deadline. The Central Board of Direct Taxes (CBDT) also extended the ITR filing deadline by a month to November 30th.
The due date for filing tax audit reports and transfer pricing certificate has also been extended to October 31st and November 30th respectively.
However, the deadline for issuing Form 16 by employers to employees was eased only until July 15th 2021.
Belated Income Tax Returns filing
For anyone who does not submit the Income Tax Returns within the deadline, there is a special provision. The government has allowed for belated returns at a later date with a certain penalty. For belated income tax returns filing, the due date has been extended to January 31st 2022.
Deadline for State of Financial Transaction Report (SFT)
The deadline for financial institutions to provide their Statement of Financial Transactions (SFT) report was extended till June 30th from the original deadline being May 31st 2021.
What have the deadlines been extended?
Keeping in view the second wave of COVID-19, the dates have been extended. This is due to the restrictions imposed by state and local governments across the nation.
Notably, some modifications have been made to the new tax regime of 2020-2021 as the table demonstrates.
|Tax regime FY 2020-2021|
|Upto ₹2.5 lakh per annum||Exempted from taxes|
|Between ₹2.5 lakh and ₹5 lakh per annum||5%|
|Between ₹5 and 7.5 lakh per annum||10%|
|Between ₹7.5 and 10 lakh per annum||15%|
|Between ₹10 and 12.5 lakh per annum||20%|
|Between ₹12.5 and ₹15 lakh per annum||25%|
|Income above ₹15 lakh per annum||30%|
Considering the new relaxations, CAs don’t have to work overtime to meet the deadlines. The pandemic has been hard on us all. In the light of recent events, the government has recognized the need to extend ITR filing deadlines for FY 2020-2021.
If you find this article useful, stay tuned for more posts about CA work in India. Unpaper is the CA practice management software that makes filing for taxes or any CA-related project easier and effective. If you would like to explore the feature-packed CA practice management software, you can request a FREE demo. Stay safe and stay updated.
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