The government has extended the deadline for filing income tax returns for the Financial Year 2018-19 and assessment year 2019-20 by individuals and certain non-corporate assessees by one month to 31st August 2019 from July 31, 2019. The extension is a much-required relief as there were many issues being faced by individuals in filing Income Tax Return by 31st July.
Individuals that include salaried taxpayers as well as entities, who do not need to get their accounts audited, were required towards filing their income tax returns for the financial year 2018-19 (Assessment Year 2019-20) by 31st July 2019. This new deadline is applicable towards individuals, the body of individuals (BOI), Hindu Undivided Families (HUF), and Association of Persons (AOP).
The finance ministry stated in a statement that the Central Board of Direct Taxes (CBDT) extended the 'due date' for filing of Income Tax Returns from July 31, 2019, to August 31, 2019, regarding the said categories of taxpayers.
Demand for an extension in filing ITR
There were demands for an extension in filing ITR date as the issuance of tax deducted at source (TDS) statement for 2018-19 financial years was delayed. Many chartered accountants, as well as tax professionals, had also appealed towards the government to extend the deadline of the return filing.
Income Tax department had also extended the deadline last month for companies to issue Form 16 TDS certificate for the financial year 2018-19 towards its employees by 25 days till 10th July. This left the salaried taxpayers with a limited time-frame of just 20 days for filing their income tax returns.
Penalty for missing deadline of ITR filing
If the ITR is not filed by a taxpayer before the expiry of the deadline, which was 31st July, then the taxpayer would have to pay a late filing fee of Rs 5,000, if filed by 31st December. If the ITR is filed between 1st January and 31st March, then late filing fees of Rs 10,000 shall be levied. Though, small taxpayers whose income doesn’t go beyond Rs 5 lakh is required to pay the late filing fee of Rs 1,000 if ITR is filed after the deadline.
With the extension of the deadline, the individuals now would have some more time for filing their ITRs without worrying regarding the late filing fees.
Central Board of Direct Taxes (CBDT) extended the due date for to file their tax returns to 31st August
Central Board of Direct Taxes (CBDT) stated that the extension of the due date is applicable to every taxpayer liable to file their tax returns by 31st July, the original due date. This applies towards assessees other than corporate taxpayers as well as a few others, which includes non-corporate entities, the books of which need not be audited.
CBDT order also stated that many individuals were reportedly facing problems in filing their tax returns because of different reasons, which includes the extension of date for issuing Form 16, the tax deducted at source (TDS) certificate given by companies.
The tax department earlier had made changes in the format of tax returns and the TDS certificates. It had also made changes in the rules for TDS returns filing through employers.
Returns for the assessment year 2019-20 related to income earned in the financial year 2018-19. The tax department generally allows a short extension if the taxpayer faces any difficulty in meeting the deadline and a longer extension for assessees in states where exceptional events, for example, a natural calamity are reported.
However, the changes to the TDS certificate format notified in April need employers to give the break-up of all the tax-exempt payments towards the employee. Form 24Q that employers are required to file with the tax department, too, was modified to provide the break-up of gross salary in terms of the value of perquisites as well as profits in lieu of salary. Bifurcation of tax-exempt allowances as well as the different deductions claimed has also to be given. The move is part of an effort for reducing ambiguity in filing returns and to make assessment easier through capturing finer details.
The Union budget for Financial Year 20 also recommended that return filing would be compulsory for even those who fall below the basic exemption limit of Rs 2.5 lakh annual income if they get into specified high-value transactions for instance spending on foreign travel.
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