Now, You can invest till 30th Jun for claiming deduction u/s 80C

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Deduction 80C

Now, You can invest till 30th Jun for claiming deduction u/s 80C

A special onetime benefit is given by the Government in view of the prevailing epidemic in the form of CORNOA virus.

The due date for investment in the LIC/PPF/NSC for claiming deduction under section is extended from 31st March 2020 to 30th June 2020. It means that now individuals & HUF can complete their tax-saving investment for the financial year 2019-20 by June 30th , 2020. Government on March 24, 2020 has very reasonably announced that taxpayers have time until June 30, 2020 to complete their tax-saving investment for FY2019-20 in view of the outbreak of Corno Virus as a result of the complete lock down has been imposed in the country.

“This is for the first time a measure like this is announced. Never in the past anything like this has been done. There is no change in the financial year closing which is going to remain as 31st March only. Its only the investment between 1st April 2020 to 30th June which will be considered as if it is invested till 31st March 2020 for income tax benefit. However, it has to be further followed by the circular and clarification by the CBDT. The said relief has to be announced under section 119(2)(b) of the Income Tax Act-1961  ” informed CA Naresh Jakhotia, Partner of SSRPN & Co.

In the press conference, FM Nirmala Sitharaman has categorically mentioned in a press conference that “Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”

“It is one of the good news for the taxpayers who are trying to maintain the social distance and are not moving out. They can now conformably do the investment till 30th June 2020 without worrying about Cornoa Virus” informed CA Monika Rathi, Partner of SSRPN & Co..

As a result of present relief, taxpayers can complete their tax-saving investments limit for financial year 2019-20 by 30th June 2020. The present pain of lockdown resulting in higher tax liability is reduced due to the present relief measures announced by the FM. Normally, there is a very heavy rush during the last week of March for investing in tax saving instruments and present relaxation will be a great relief to taxpayers” ” said CA Sharad Thawali, Partner of SSRPN & Co.

“All individual and HUF Taxpayers who have failed to invest till date or even before 31st March 2020 or who are running short of fund in the month of March, now can utilize this opportunity by investing in the tax saving instruments. This is very timely and excellent announcement by the finance Minister Smt. Nirmala Sitharaman. The present extension is sure to provide relief to many taxpayers, especially senior citizens and individuals who are not well versed with the  online digital  facilities offered by various banks and institutions.” as said by CA Jethalal Rukhiyana

“It may be noted that the banks and financial institutions are not covered under the lockdown and if the taxpayers want to make the tax payment or other investment, they can still visit the bank. Services like cash deposit, withdrawal, cheque clearing, remittances and government transactions can be done by the citizens. Further, taxpayers who has not made the payment of commensurate amount of advance tax must pay it before 31st March itself. The last date for payment of advance tax was 15th March 2020 much before the present situation of cornovirus and present press conference by FM. The relief form interest is not provided pursuant to above press conference. In short, if there is a shortfall in the payment of advance tax, then taxpayers can make the payment of advance tax still before 31st March so that there is no interest liability under section 234B or 234A subsequently” advised CA Naresh Jakhotia

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