Invest up to July, claim benefits in FY21 I-T returns

NEW DELHI: The government on Wednesday extended the deadline for several compliances under the direct tax and benami property laws, including allowing assessees to invest in public provident fund, NSC and other tax-saving instruments up to July 31 and claim credit in the income tax returns for the last financial year.
In addition, the deadline for filing returns, original as well as revised, for financial year 2018-19 has been extended further to July 31. The return filing date for the last financial year, which was July 31 for salaried has already been extended to November 30.
“The returns of income which are required to be filed by the 31 July, 2020 and 31 October, 2020 can be filed by 30 November, 2020. Consequently, the date for furnishing tax audit report has also been extended to 31 October, 2020,” the finance ministry said regarding returns for financial year 2019-20. TDS and TCS certificate for FY 2019-20 can also be issued up to 31 July and 15 August, respectively.
The relaxations have been necessitated by Covid 19, which had resulted in a two-month lockdown with offices yet to return to full strength, hampering the issuance of Form 16 and other papers needed to file tax returns.
For small taxpayers, with liability of up to Rs 1 lakh, the government has allowed for payment of self-assessment tax by 30th November, 2020, although there is no relief for those above the threshold.
Further, the finance ministry said, for capital gains under section 54 to 54GB of the Income Tax Act, investment, construction or purchases made up to September 30 will be eligible claiming deduction for the last financial year. The move will benefit individuals or HUFs who had sold residential property and need to reinvest the gains to claim tax deduction.
When it comes to action by tax authorities, the deadline for passing orders and issuing notices has been extended from December 31 to March 31, 2021 – which is also the deadline for linking Aadhaar with PAN.