Income Tax Return Filing – New Dates & Deduction Benefits

Highlights of CBDT’s Notification dt. 24th June, 2020.

In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Coronavirus, on 31 March 2020 the Government has, extended various time limits in order to offer more relief to taxpayers for various compliances –

1. Deadline for filing the original as well as revised income tax returns for FY 2018-19 (AY 2019-20) has been extended to 31 July 2020.

2. The due date for the income tax return for the financial year 2019-20 (AY 2020 – 21) has been extended to 30 November 2020.

Therefore, the returns of income which are required to be filed by 31st July 2020 and 31st October 2020 is extended to November 30th, 2020. Consequently, the date for the furnishing tax audit report has also been extended to October 31st, 2020.

due date income tax return

3. In order to provide relief for small and middle-class taxpayers, the date of payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is up to Rs. 1 lakh has also been extended to 30 November 2020.

However, it is clarified that there will be no extension of the date for the payment of self-assessment tax for taxpayers with a tax liability of more than Rs . 1 lakh. In this case, the full self-assessment tax is payable by the due dates set out in the Income Tax Act , 1961 (IT Act) and the late payment will attract interest pursuant to section 234A of the IT Act.

4. The date for making various investments/payments for claiming deduction under Chapter  VIA-B of the IT Act, which includes Section 80C (LIC, PPF, NSC, etc.), 80D (Mediclaim), 80 G (Donations), etc., has also been extended to 31 July 2020. As a result, the investment/payment may be made up to 31 July 2020 to claim the deduction under these sections for the year 2019-20.

5. The investment/construction/purchase date for claiming rollover benefit/deduction in respect of capital gain under sections 54 to 54 GB of the IT Act was also extended to 30 September 2020. Consequently, the investment/construction/ purchase made up to September 30th, 2020 will be eligible to claim capital gains deduction.

6. The date for the start of operation of the SEZ units for claiming deduction under section 10AA of the IT Act was also extended to September 30th, 2020 for units receiving the necessary approval by March 31st, 2020.

tds due dates

7. The furnishing of TDS / TCS statements and the issuance of TDS / TCS certificates is a requirement for allowing taxpayers to file their income return for FY 2019-20, the filing date for TDS / TCS statements and the issuance of TDS / TCS certificates for FY 2019-20 was extended to 31 July 2020 and 15 August 2020 respectively.

8. The date for passing of order or issuance of notice by the authorities and various compliance with various Direct Taxes & Benami laws needed to be passed / ordered / released by 31 December 2020, were extended to 31 March 2021. The deadline for connecting Aadhaar with PAN will also also be extended to 31 March 2021.

The Minister of Finance has already announced an extension to 31 December 2020 of the date for making payment without additional sum under the “Vivad Se Vishwas” scheme, required legislative amendments for which will be moved in due time. The said Notification has extended to 31 December 2020 the date for the completion or compliance of the actions required to be completed under the Scheme. Consequently, the date of declaration furnishing, order passing, etc. under the Scheme is extended to 31 December 2020.

Deferment of the implementation of the new approval / registration / notification procedure for certain entities u / s 10(23C), 12AA, 35 and 80 G of the IT Act has already been extended from 1 June 2020 to 30 September 2020,

The old procedure i.e. preamended procedure will continue to apply. Necessary legislative amendments in this regard shall be moved in due time.

The Finance Minister has already announced a reduced rate of TDS for specified non-salary payments to residents and a rate of TCS of 25 per cent for the period from 14 May 2020 to 31 March 2021.

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Details on Refund of Tax under GST

Refund of Tax –

Refund includes refund of tax and interest given on:
1.Zero-rated supplies of goods or services or both; or
2.Inputs or input services used in the effecting such zero-rated supplies of goods or services or both; or
3.Supply of goods related as deemed exports; or
4.Refund of not utilized input tax credit at last of any tax period in case the % of output tax is less than the % of input tax.

Conditions for Claiming Refund-

1. refund of tax paid on zero-rated supplies of goods and/or services or on inputs or input services used in making such zero-rated supplies;
2. refund of not utilized input tax credit in Section 54(3);
3. refund of tax paid on a supply which is not given, either completely or partially, and for which invoice has not been generated, or where a refund voucher has been created;
4. refund of tax in pursuance of Section 77;
5. the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the occurrence of such tax and interest to any other individual; or
6. the tax or interest produced by such other class of applicants as the Central or a State Government may, on the recommendation of the Council, by notification, given.

Applying for Claiming Refund

The individual claiming refund has to make an application in Form GST RFD-01.

Time Restriction

1.Refund application is to be filed before the expiry of two years from the exact date.
2.But in case of UNO the refund application is required to be made before the expiry of 6 months from the last day of the Quarter in which this supply was received.

Min. Amount

Rs. 1000. If the refund amount is less than ` 1,000/-, then no refund can be paid.

Refund of Balance in cash or credit Ledger

The balance of cash or credit after payment of tax, interest, penalty, fee or any other amount

Refund of any not utilized ITC

Refund can only be claimed under below circumstances: –
(a) zero rated supplies made without paying of tax
(b) where the credit has accumulated on account of % of tax on inputs being more than the % of tax on output supplies (other than zero rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council
Provided also that no refund of not utilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export tax
Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies.

Documents to be Given

Below documents are required to be given along with the refund application:
1. Documentary evidence to establish that a refund is because of the applicant, and
2. Documentary evidence to prove that incidence of tax and interest had not been passed on to any other individual.
Exemption – if the refund claimed is less than 2 lacs, then documentary evidence would not be required to be submitted. However, the applicant may file a declaration based on the documentary or different evidence available with him, certifying that the incidence of this tax and interest is not passed on to any other individual.

Provisional sanction of Refund

The proper officer may sanction refund to an individual on a condition that during any period of five years immediately preceding the tax period to which the claim for refund relates, not been prosecuted for any offence under the Act or under any law where the amount of tax evaded exceeds two hundred and fifty lakh rupees. The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and on being prima facie satisfied that the amount claimed as refund is because of the applicant shall make an order in FORM GST RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis in a period not more than seven days from the date of acknowledgement.

Provisional Refund on Exports

the officer may, in case of any claim for refund on account of zero-rated supply of goods or services or both made by registered individuals, except such category of registered individuals as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, 90%. of the total amount so claimed, leaving the amount of input tax credit provisionally accepted. Such provisional refund will be granted within 10 days of making of application or within 7 days of issuance of acknowledgement of the application.
Refund of the balance 10% will be granted after verifying documents furnished by the applicant.

Time Restriction on Officer to Pass Final Order

The officer shall issue the order within sixty days from the date of receipt of refund application.

Adjust in Refund

The refund due to the applicant can be adjusted towards tax, interest, penalty or any other amount which the applicant has to pay but which remains unpaid under the Act or under any previous law.

Manually Filing of Refund Application –

Refunds can be filed manually and the processing of refund with respect to any notice, reply or order, among others, can also be issued / filed manually. in terms of Rule 97A has been inserted in the CGST Rules, 2017 vide Notification No. 55/2017 – Central Tax dated 15-11-2017. In terms of Rule 97A, any reference to this Chapter (i.e., Chapter X- Refund under CGST Rules) any reference to electronic filing of an application, intimation, reply, declaration, statement or online issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the mentioned application, intimation, reply, declaration, statement or issuance of the given notice, order or certificate in such Forms as appended to these rules.

Applying for Refund in case of Deemed Export

Application for refund in case of deemed export can be filed by:
(a) the recipient of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient will not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund

Interest on Refund Sanctioned

If the refund is not sanctioned within 60 days from the receipt of refund application, interest would be paid at a rate not more than 6%.
If refund is made based on the order of appellant authority then interest would be paid at a % of 9% for the period starting from expiry of 60 days from the date of application consequent to the order till the date of actual refund of tax.

Enquire with Certicom Consulting in case of further queries.

Due date of filing ITR extended till 31st Aug 19 (By CBDT)

The income tax expert has extended the due date for income tax return filing to 31st August from 31st July ’19’. The CBDT took this choice on Tuesday to give a major relief to tax payers who were confronting challenges while filing the income tax return. With the extension of the due date, there is an adequate time for the people to file their returns on time without stressing over any late charges or penalty. Although, as per the income tax department, the expansion applies to all assessees other than corporate tax payers and a couple non-corporate entities.

Taking to Twitter, the Income Tax Department said the due date for filing of ITR for the assessment year 2019-20 was July 31 for specific categories of tax payers on consideration of the matter, the CBDT extended the due date.

Prior to this notice, the CBDT had stretched out the due date for employers to document their TDS returns, i.e., Form 24Q, from May 31, 2019 to June 30, 2019 and consequently due date of issuing Form 16 by the employer was also extended from June 15, 2019 to July 10, 2019. Hence, employees holding back to get their Form 16 to file their ITRs were left with just 21 days to file their tax return by the previous due date of July 31.

In addition, if you don’t file their returns before the due date for example 31st August ’19’, they will be obligated to pay penalty and other procrastination charges by the Authorized dept. Thus, it is important to file your returns regardless of confronting any legal proclamations or notices.

While, if people don’t file income tax returns at the very latest the due date, they would be obligatory  at the rate of 1% for consistently, or part of a month, on the measure of tax remaining unpaid according to section 234A.

A taxpayer is liable to pay late ITR documenting fees of:

According to section 234F if return isn’t filed till the due date but is filed till 31 December then fees of Rs. 5,000 is to be paid and if that return isn’t documented even after 31 December, at that point charges of Rs. 10,000 is to be paid. However, where total pay of the person does not surpass Rs. 5,00,000 at that point charges under section 234F will not surpass Rs. 1,000.

Reach out to Certicom Consulting (Best IT consultants in Bangalore) for any queries.