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
- Top 7 Income Tax Errors That Invite IT NoticesTop 7 Income Tax Errors That Invite IT Notices Filing your Income Tax Return (ITR) might seem like a routine task, but even small mistakes can raise red flags with the Income Tax Department. With increasing data integration and cross-verification tools like Form 26AS and AIS (Annual Information Statement), the department is better equipped than […]
- Resident’s Guide to Buying NRI Property in IndiaResident’s Guide to Buying NRI Property in India India sees a high volume of property transactions involving Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). While such deals are legally permitted, they come with added compliance requirements—especially for resident Indians purchasing property from non-residents. Even minor procedural lapses can trigger […]
- Flipkart ESOP Compensation: ₹11 Crore Payout – Salary or Capital Receipt?Flipkart ESOP Compensation: ₹11 Crore Payout – Salary or Capital Receipt? In a landmark situation that could set a precedent for global tech employees, Flipkart employees received massive discretionary payouts after their ESOPs lost value due to a corporate restructure. But the key question remains—should such payouts be taxed as salary […]
- Form 16: Key to Accurate ITR FilingForm 16: Key to Accurate ITR Filing As tax season rolls in, salaried individuals across India are bracing themselves for the annual ritual of Income Tax Return (ITR) filing. With numerous documents to gather and deadlines looming, one document emerges as a true ally—Form 16. Often overlooked or misunderstood, Form 16 […]
- Cost Inflation Index for FY 2025-26: Impact on LTCG TaxCost Inflation Index for FY 2025-26: Impact on LTCG Tax On July 1, 2025, the Income Tax Department officially announced the Cost Inflation Index (CII) for the financial year 2025-26, setting it at 376. This annual update holds crucial significance for taxpayers, especially those dealing with long-term capital assets, as it […]
- Loan Interest Deductions: How to Claim and Avoid Tax ScrutinyLoan Interest Deductions: How to Claim and Avoid Tax Scrutiny Loan interest deductions are a powerful tool in reducing your taxable income and optimizing your financial planning. Whether you’re repaying a home loan or funding higher education, the Income Tax Act offers key deductions that can help you save significantly. However, […]
- NRI Tax Filing in India: A Guide to Rent, Capital Gains & Interest IncomeNRI Tax Filing in India: A Guide to Rent, Capital Gains & Interest Income As global mobility increases, a significant number of Indians live abroad while maintaining financial interests in India—be it property, investments, or bank accounts. For Non-Resident Indians (NRIs), understanding how income earned in India is taxed is crucial, […]
- Foreign Tax Credit in India: A Guide for NRIsForeign Tax Credit in India: A Guide for NRIs As cross-border employment, freelancing, and global investments become increasingly common, a growing number of Indians are earning income from foreign sources. However, this also brings with it the challenge of double taxation, particularly for those who return to India and become tax […]
- Top 10 Tax Filing Rules for FY 2024-25Top 10 Tax Filing Rules for FY 2024-25 Filing your Income Tax Return (ITR) is more than just a statutory formality — it’s a crucial step for financial transparency, refund claims, and avoiding penalties. For the Financial Year 2024–25 (Assessment Year 2025–26), the Income Tax Department has introduced key rule changes […]
- Crypto Non-Filers Under IT ScannerCrypto Non-Filers Under IT Scanner As the digital asset space gains momentum in India, so does the scrutiny by tax authorities. The Income Tax Department (ITD) has intensified its efforts to ensure compliance among cryptocurrency investors and traders, particularly those who have not reported their earnings from Virtual Digital Assets (VDAs) […]