Government Extends Tax Filing Deadlines Further
A tax advisor looks over paperwork while working with a customer (Photographer: David Paul Morris/Bloomberg)  

Government Extends Tax Filing Deadlines Further

The Indian government has extended the income tax return filing deadline for financial year 2019-20 to Dec. 31, in order to provide relief to taxpayers. It has also extended the deadline for filing the GST annual report for FY19.

Due to disruptions caused by the Covid-19 pandemic, the government had earlier extended the deadline for income tax return filings to November 30.

To provide “more time to taxpayers for furnishing of income tax returns,” the government has also announced the following changes:

  • Due date for filing income tax returns for the taxpayers, including their partners, who are required to get their accounts audited, has been extended to Jan. 31, 2021 from Oct. 31, 2020. Last date for those with liability of self-assessment tax up to Rs 1 lakh has also been extended to Jan. 31, 2021.
  • Due date for filing income tax returns for taxpayers required to file report for international or domestic transactions has been extended to Jan. 31, 2021 from Nov. 30, 2020.
  • Consequently, the last date for filing various audit reports, including tax audit report and report for international or specified domestic transaction, has also been extended to Dec. 31, 2020. Deadline for those with liability of self-assessment tax up to Rs 1 lakh has also been extended to Jan 31, 2021.

The taxpayers who have not yet paid their complete tax liability and are required to pay self-assessment tax of more than Rs 1 lakh, will have to pay taxes within original due dates, to avoid charging of interest, said Shailesh Kumar, a partner at Nangia & Co LLP. Deadline for payment of self-assessment tax over Rs 1 lakh hasn’t been extended and is Nov. 30, 2020.

The government has also extended due date for filing GST annual return and reconciliation statement for financial year 2018-19 to Dec. 31, 2020. The earlier deadline for filing GSTR-9 and GSTR-9C for FY19 was Oct. 31, 2020.

Filing of GSTR-9 for taxpayers with annual turnover up to Rs 2 crore is optional for FY19, while filing reconciliation statement, GSTR-9C, for the same year is optional for taxpayers with annual turnover up to Rs 5 crore.

The extension to file GST annual returns would provide significant relief for both businesses and chartered accountants who have been struggling to meet tax filing deadlines due to the fallout of the pandemic, said Abhishek Jain, a partner at EY India.

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