Direct Tax Alert - CBDT extends few compliance related deadlines

Background

In the wake of the second wave of COVID-19 and with lockdowns announced in several States, the Central Board of Direct Taxes (CBDT) extended the deadlines to 30 June 20211. Recently, the CBDT has issued a circular2 to provide relaxation to the taxpayer by extending certain statutory deadlines under the Income-tax Act, 1961 (IT Act).

We, at BDO in India, have analysed and summarised the said circular hereunder:  

Deadline falling between 1 April 2021 and 31 May 2021

In respect of following compliances, where the deadline is falling between 1 April 2021 and 31 May 2021, the deadline has been extended to 31 May 2021

  1. Filing appeal with First Appellate Authority
  2. Filing objections to Dispute Resolution Panel under section 144C of the IT Act
  3. Filing Income-tax return in response to notice under section 148 of the IT Act

Deadline falling on 31 March 2021

In respect of following compliances whose deadline was 31 March 2021, the deadline has been extended to 31 May 2021

  1. Belated Income-tax return for Fiscal Year (FY) 2019-20 under section 139(4) of the IT Act
  2. Revised Income-tax return for FY 2019-20 under section 139(5) of the IT Act

Deadline falling by 30 April 2021

In respect of following compliances whose deadline is on or before 30 April 2021, the deadline has been extended to 31 May 2021

  1. Tax deducted under section 194-IA, section 194-IB and section 194M of the IT Act whose deadline for payment and filing of challan-cum statement is on or before 30 April 2021
  2. Statement in Form No. 61, containing particulars of declarations received in Form No. 603

BDO Comments

With the country reeling under the severe second wave of COVID-19, these extensions will relieve some of the compliance burdens on taxpayers. While the deadline of taxes withheld under section 194-IA, section 194-IB and section 194M of the IT Act have been extended, it is pertinent to note that there is no extension with respect to payment of taxes withheld under other provisions of the IT Act (say section 192, section 194C, section 195, etc.). Hence, if the taxes withheld under other provisions of the IT Act are not paid on or before 30 April 2021, interest for delay in payment of taxes will get attracted. Furthermore, while the deadline for filing an appeal before the First Appellate Authority as well as DRP have been extended, there is no extension mentioned in the circular with respect to filing of appeals before higher authorities viz., Tax Tribunal, High Court and Supreme Court. In this regard, one could rely on the Supreme Court’s recent order wherein the Supreme Court has used its inherent powers under Articles141 and 142 of the Constitution to order indefinite extension of limitation period.

1Notification No. 38/2020/F. No. 370142/35/2020-TPL, dated 27 April 2021 and Notification No. 39/2020/F. No. IT(A)/01/2020-TPL, dated 27 April 2021. Refer our tax alert - https://www.bdo.in/en-gb/insights/alerts-updates/direct-tax-alert-cbdt-further-extends-few-statutory-deadlines-and-payment-under-vivad-se-vishwas-s 

2Circular No.8/2021, dated 30 April 2021

3A declaration from an individual who does not have a Permanent Account Number who is entering into transactions specified in Rule 114B of the Income-tax Rules, 1962.     

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