1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.
Fact: Financial year closure is not extended. Only the date of compliance which was required by 31st March 2020 either by the taxpayers or by the tax authorities has been deferred till 30th June 2020.

2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.
Fact: All taxpayers who have not filed the return of income of FY 2018-19 can file or revise the return till 30th June 2020. In the normal course, the belated income tax return cannot be filed after the end of the relevant assessment year. However, due to lockdown till 14th April, Government is allowing the filing of return of FY 2018-19 (AY 2020-21) till 30th June. Readers may note that earlier there was a period of 2 years for filing or revising the return which is reduced to 1 year earlier.

3) In the FY 2019-20, income is taxable till 31st March only and not up to 30th June, i.e. for taxability of income financial year is considered till 31st March only.
Fact: The income of the FY 2019-20 (i.e., till 31st March 2020) will be taxable for the FY 2019-20.

4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.
Fact: Investment in PPF/LIC etc which are eligible for deduction u/s 80C and mediclaim payment for claiming deduction u/s 80D can be done till 30.06.2020.

5) New LIC, mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.
Fact: There is a restriction of Rs. 1.50 Lakh for deposits in the PPF A/c in one year. If the person has not deposited any amount in the PPF Account till 31.03.2020 and if he deposits it in between April to June 2020 then surely he will be eligible for deduction u/s 80C in the FY 2018-19. However, as per the present PPF rule, such a person may not be able to invest again Rs. 1.50 Lakh for the FY 2020-21 as there is a yearly ceiling of Rs. 1.50 for deposit in the PPF Account. To take care of this situation, the Government needs to amend the PPF rules to provide that Rs. 3 Lakh in aggregate can be invested for the FY 2019-20 & 2020-21.

6) Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due up to 31st March can be claimed as deduction even if paid till 30th June.
Fact: If the person pays the premium which is due in April – 2020 and if he makes the payment of the same before 30.06.2020 then he can get a deduction in the FY 2019-20 (AY 2020-21). Only the payment of such policies which has become due before 31st March would be considered for deduction.

7) Housing loan interest is eligible for deduction on an accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However, Installments due up to 31st March can be claimed as deduction even if paid till 30th June.
Fact: If a person deposits the amount from April to June 2020 in his housing loan account then he would be eligible for deduction u/s 80C subject to the condition that the amount is due till March – 2020. It may be noted that interest on housing loan is eligible for deduction on an accrual basis and not on a payment basis. All interest which is due till 31st march 20 even if not paid(even till 30th June 20) is eligible for claiming in a.y.20-21 itself. that way this is not specific to current extension as it is there in the section for all years.

Latest Updates

• CBDT to Display Foreign Assets & Overseas Income in AIS and Form 26AS
  CBDT to Display Foreign Assets & Overseas Income in AIS and Form 26AS On 8 July 2026, the Central Board of Direct Taxes (CBDT) issued a landmark directive (Order F.No. 225/73/2025-ITA-II) making foreign financial information significantly more transparent. Under this order, information received by India from foreign tax jurisdictions will now […]
• ITR-1 vs ITR-2 vs ITR-4 for AY 2026-27: How to Choose the Right Income Tax Return Form
  ITR-1 vs ITR-2 vs ITR-4 for AY 2026-27: How to Choose the Right Income Tax Return Form Filing your Income Tax Return (ITR) begins with one critical decision—selecting the correct return form. While it may seem like a minor step, choosing the wrong form can result in your return being treated […]
• Who Qualifies as a Relative Under the Income-tax Act, 1961?
  Who Qualifies as a Relative Under the Income-tax Act, 1961? The term “relative” may appear straightforward, but under the Income-tax Act, 1961, it does not have a single universal definition. Instead, its meaning changes depending on the section and the purpose for which it is used. This distinction is important because […]
• GST at 9: Nine Years of India’s Biggest Tax Reform – Achievements, Challenges & The Road Ahead
  GST @ 9: Nine Years of Transformation, Challenges, and the Future of India’s Indirect Tax System From “One Nation, One Tax” to AI-driven tax administration, GST has transformed India’s indirect tax landscape over the last nine years. While the reform has simplified taxation and strengthened compliance, businesses continue to grapple with […]
• Penalties and Prosecution Under the Income-tax Act, 1961: A Complete Guide for Taxpayers (AY 2026-27)
  Penalties and Prosecution Under the Income-tax Act, 1961: A Complete Guide for Taxpayers (AY 2026-27) Tax compliance is one of the most important responsibilities of every taxpayer in India. The Income-tax Act, 1961 not only prescribes procedures for filing returns and paying taxes but also contains strict provisions for penalties and […]
• July 2026 Statutory Compliance Calendar: Important Due Dates Under GST, Income Tax, FEMA, SEBI, PF/ESI & Companies Act
  July 2026 Statutory Compliance Calendar: Important Due Dates Under GST, Income Tax, FEMA, SEBI, PF/ESI & Companies Act As the first month of the second quarter of the financial year progresses, July 2026 brings a packed schedule of statutory compliance obligations for businesses, employers, professionals, tax deductors, and companies. From GST […]
• ITR AY 2026-27: Complete Income Tax Compliance Calendar Every Taxpayer Should Follow
  ITR AY 2026-27: Complete Income Tax Compliance Calendar Every Taxpayer Should Follow As the income tax filing season gathers momentum, taxpayers must keep a close watch on several important statutory deadlines throughout the financial year. Whether you are a salaried employee, self-employed professional, business owner, or tax deductor, meeting these due […]
• Complete Guide to Salary Tax Benefits for AY 2026-27: Exemptions, Deductions & Perquisites Explained
  Complete Guide to Salary Tax Benefits for AY 2026-27: Exemptions, Deductions & Perquisites Explained Tax planning is an essential aspect of financial management for every salaried individual. While salary forms the primary source of income for millions of taxpayers, not every component of a salary package is fully taxable. The Income-tax […]
• CBDT Compulsory Income Tax Scrutiny Guidelines FY 2026-27: Understanding CS-01 to CS-06 and When Your ITR Can Be Selected
  CBDT Compulsory Income Tax Scrutiny Guidelines FY 2026-27: Understanding CS-01 to CS-06 and When Your ITR Can Be Selected The Central Board of Direct Taxes (CBDT) has issued fresh guidelines for the compulsory selection of Income Tax Returns (ITRs) for Complete Scrutiny during Financial Year (FY) 2026-27. These instructions apply to […]
• Advanced Income Tax E-Filing Guide for HNIs, NRIs, and Business Owners (AY 2026-27)
  Advanced Income Tax E-Filing Guide for HNIs, NRIs, and Business Owners (AY 2026-27) Income tax e-filing has evolved far beyond simply reporting income and paying taxes. For High-Net-Worth Individuals (HNIs), Non-Resident Indians (NRIs), and business owners, the Income Tax Return (ITR) requires extensive disclosures, careful planning, and strict compliance with various […]