This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our PRIVACY POLICY for more information on the cookies we use and how to delete or block them.
Alerts:

Direct Tax Alert: CBDT extends the deadline for filing of Tax Return; furnishing of Tax Audit Report and Transfer Pricing Report

26 October 2020

Background

With the COVID-19 pandemic playing havoc and resulting in many practical challenges, the Indian Government has doled out various relief measures and also extended different statutory deadlines. The latest on Direct Tax front being through Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (‘Ordinance’) wherein it has extended all deadlines falling between 22 March 2020 and 31 December 2020 to 31 March 2021 (subject to some exceptions). While the Income-Tax Act, 1961 (IT Act) provides for a different tax return filing deadline (i.e. 31 July and 31 October, as the case may be) depending upon the type of taxpayer, the Ordinance provides that for all types of taxpayers the deadline shall be 30 November 2020. Accordingly, the deadline for furnishing of Tax Audit Report (TAR) and Transfer Pricing (TP) Report was extended to 31 October 2020 from 30 September 2020.

Recently, the Finance Ministry released a Press Release to further extend the deadline for filing of income tax returns and furnishing of TAR and TP Reports. We, at BDO in India, have summarised this Press Release hereunder:

Extension of tax return deadline

The revised deadline is tabulate hereunder:

Sr. No.

Particulars

Original Deadline as per the IT Act

Revised Deadline

1

Taxpayers (including their partners) who are required to get their accounts audited

31 October 2020

31 January 2021

2

Taxpayers who are required to furnish report in respect of international / specified domestic transactions

30 November 2020

31 January 2021

3

Taxpayer not covered in 1 and 2 above

31 July 2020

31 December 2020

 

Extension of deadline for furnishing of audit reports under the IT Act

The deadline for furnishing of various audit reports (including TAR and TP report) under the IT Act has been extended to 31 December 2020.

Relaxation from interest under section 234A of the IT Act

In order to provide relief to small and middle-class taxpayers in the matter of payment of self-assessment tax, the deadline for payment of self-assessment tax date has also been extended to:

  • 31 January 2021 for taxpayers covered by point 1 and 2 above.
  • 31 December 2020 for taxpayers covered by point 3 above.

BDO Comments

With the new normal throwing different challenges and taxpayers grappling with them, the extension has come as a huge relief. The press release mentions that a notification shall be issued for the same. While the compliance due dates for most of the taxpayers have been extended, a plain reading of the press release, suggests that in case of few taxpayers who are not covered in the above mentioned chart the due date may continue to be 30 November 2020. We hope that this anomaly will be addressed in the notification which is yet to be issued.