Taxpayers are allowed a range of deductions against investment in various insurance products.
The government has, in the recent past, extended a slew of deadlines to ease the process of filing original and revised income tax returns for assesses in wake of the coronavirus pandemic and resultant nation-wide lockdown. The Central Board of Direct Taxes (CBDT) has extended the time limit for filing income tax (I-T) returns, making investments to claim income tax deductions and for furnishing and issuing TDS (tax deducted at source) and TCS (tax collected at source) statements and certificates.
The government has further extended the deadline for filing income tax (I-T) returns for financial year 2019-20. The last date for filing returns for the financial year 2019-20 (Assessment Year 2020-21) has been extended till November 30, 2020, the Central Board of Direct Taxes - the apex policymaking body for the Income Tax Department - said in a statement. Therefore, the return of income earned between April 1, 2019 and March 31, 2020, which was due by July 31, can now be filed by November 30.
Similarly, the Central Board of Direct Taxes (CBDT) has set July 31, 2020 as the deadline for filing original and revised returns for financial year 2018-19 (Assessment Year 2019-20). Assesses have to file their returns for income earned between April 1, 2018 and March 31, 2019 by July 31, 2020.
The last date for furnishing tax audit report has also been extended till October 31.
CBDT has also extended the time limit for making investments to claim income tax deduction by a month till July 31, 2020. It also eased the last date for furnishing and issuing TDS (tax deducted at source) or TCS (tax collected at source) statements/certificates pertaining to financial year 2019-20 to July 31 and August 15 respectively.
Taxpayers are allowed a range of deductions against investment in life insurance, provident fund (Section 80C of the Income Tax Act) and health insurance (Section 80D) for financial year 2019-20.
The Income Tax Department has also allowed assesses to claim deductions in capital gains arising out of investments, construction and purchases made till September 30, 2020. Capital gains tax is the tax payable on sale of assets such as equities and mutual funds.
