CBDT
revising return forms to enable taxpayers avail benefits of timeline extension
due to Covid-19
The
pandemic has cast its shadow across various economic activities with massive
dislocation in global production, supply chains and trade. In
wake of the current nationwide lock down as directed by Government of India due
to issue of Covid-19, a need has been felt to to
enable income taxpayers to avail full benefits of various timeline extensions
granted by the Government of India due to Covid-19 pandemic
situations, the CBDT is revising the return forms for FY 2019-20
(Assessment Year 2020-21) which shall be notified by the end of this
month.
Also, CBDT feels to revised various returns
as per the need of the time. Thus, CBDT vide PRESS RELEASE
dated 19.04.2020 after considering the current situation due
to COVID 19 states that in order to facilitate taxpayer
to avail full benefits with various timeline extension up to 30th June
2020 granted by the government, it has initiated necessary changes in the
return forms so that taxpayers could take benefits of their transactions
carried out during the period from 1st April 2020 to 30th June
2020 in the return forms for FY 2019-20.
CBDT
States:
In order to enable income taxpayers
to avail full benefits of various timeline extensions granted by the Government
of India due to Covid-19 pandemic situations, the CBDT is revising the
return forms for FY 2019-20 (Assessment Year 2020-21) which shall be
notified by the end of this month.
CBDT today said that in order to
facilitate taxpayer to avail full benefits with various timeline extension up
to 30th June 2020 granted by the government, it has initiated
necessary changes in the return forms so that taxpayers could take benefits of
their transactions carried out during the period from 1st April
2020 to 30th June 2020 in the return forms for FY 2019-20.
CBDT explained that the necessary
modifications in the return forms are being made to allow taxpayers to avail
the benefits of their investments/transactions made for the Apr-to-Jun 2020
period. Once the revised formsare notified, it will further necessitate the
consequential changes in the software and return filing utility.Hence, the
return filing utility after incorporating necessary changes shall be made
available by 31st May, 2020 to avail benefits for FY 2019-20.
CBDT said thatdue to outbreak of
Covid-19, the Government has extended various timelinesunder the Income-tax
Act,1961 vide Taxation and Other Laws (Relaxation of certain provisions)
Ordinance, 2020. Accordingly, the time for making investment/ payments for
claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C
(LIC, PPF, NSC etc.), 80D (Mediclaim),80G (Donations), etc. for FY 2019-20 has
also been extended to 30thJune 2020. Also, the dates for making
investment/construction/purchase for claiming roll over benefit in respect of
capital gains under sections 54 to section 54GB has also been extended to 30th June
2020. Therefore return forms are being revised to facilitate reporting of the
transactions of the relief period.
It may be noted that generally the
income-tax return forms are notified in the first week of April. This year also
the e-filing utility for filing of return for Assessment Year 2020-21 wasmade
available as on 1st April, 2020, and the Income-tax Return (ITR) Forms ITR-1
(Sahaj) and ITR-4 (Sugam) for the FY 2019-20 (Assessment Year 2020-21),too,
were already notified vide notification dated 3rd January, 2020. However, to ensure
that the taxpayer is enabled to avail all benefits of the timeline extension
due to Covid -19 pandemic, the ReturnFormsrevision is being carried out.
DISCLAIMER: THE
ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING
AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT
AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING
INITIATIVE.
THE AUTHOR – CS
DEEPAK SETH (ASSOCIATE
PARTNER AT HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT
CONTACTHHPRO@GMAIL.COM OR 9910248911.
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