The Due date extension for Return filing for the FY 2019-20 & 2018-19: Confusions & Clarifications

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The Due date extension for Return filing for the FY 2019-20 & 2018-19: Confusions & Clarifications

“A lie can run round the world before the truth has got its boots on.”
― Terry Pratchett, The Truth

This is what has happened with regard to the date extension for filing income tax return. Immediately after the introduction of The Taxation and Other Laws (Relaxation and amendment of certain provisions) Bill 2020 in the Lok-sabha, the message was getting circulated all over the social media that there is an extension of date for filing income tax returns for the FY 2019-20 as well as FY 2018-19.

It has resulted in a mass level confusion because the message was almost finding place in every mobile with the end “forwarded as received”. Everyone was circulating with such a speed that the quote “wrong appears to be right when spoken 100 times” looks very true. Facebook, twitter, whatsapp, and what not, everything got flooded with the news of date extension.

At this point of time itself, a team of experts at www.TheTaxTalk.com have clarified about the legal position and got an enormous message over it.

Let us revisit the confusions & clarifications thereon.

  1. This circulation is done on the basis of The Taxation and Other Laws (Relaxation and amendment of certain provisions) Bill 2020 as was introduced in the Lok Sabha on 18/09/2020.
  2. The present ordinance is to a great extent the reproduction of earlier ordinance promulgated during lockdown to ease the burden of the taxpayers from tax compliances. The present laying of the bill before the Lok Sabha was needed due to legal compulsion and the same is done now.
  3. The above bill was having 5 chapters with chapter I related to the Relaxation ordinance issued earlier during the lockdown period and chapter II related to amendment to the FA 2020.
  4. The confusion has arisen due to mis-interpretation of Chapter I of the above bill.
  5. Section 3 of Chapter I of above ordinance at the first instance provides for date extension till 31.03.2021 subject to few exceptions. These exceptions are carved out proviso to section 3 of the ordinance. The third proviso to section 3 of the bill reads as under:“Provided also that where the specified Act is the Income-tax Act, 1961 and the compliance relates to—(i) furnishing of return under section 139 thereof, for the assessment year commencing on the—(a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted;

    (b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of November, 2020” had been substituted;

    (vii) furnishing of report of audit under any provision thereof for the assessment year commencing on the 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st day of October, 2020” had been substituted:“

  6. If one goes carefully through the above bill, one may find that the first sub section 3 extends all the due dates between 20 March 2020 to 31 December 2020 to 31 March 2021 whereas the next proviso clarifies that for various due dates shall not extend to 31 March 2021 where it will extend to some specific date.
  7. As a result of above exclusions carved out
  8. i)The due date of filing ITR for the FY 2018-19 is not 31st March 2021 but 30th September 2020.
  9. ii)The due date of filing ITR for the FY 2019-209 is not 31st March 2021 but 30th November 2020.

iii)           The due date for tax audit report for A.Y. 2020-21 is not 31st  March 2021 but 31st October 2020 only.

The analysis of this exclusion was also covered while analyzing the due date of TDS return in our article at – https://thetaxtalk.com/2020/07/16/tds-return-due-date-for-1st-quarter-of-the-fy-2020-21-whether-extended-or-not/

The fact remains that A lie can run round the world before the truth has got its boots on.

Team www.TheTaxTalk.com is committed to keep you updated with true tax updates & knowledge.

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