Tax Alert: Timeline for filing belated / revised tax return for fiscal year 2018-19 extended to 30 September 2020
30 July 2020
The Government of India has been proactively taking steps to address challenges posed by the COVID-19 pandemic. In order to give relief to taxpayers from meeting compliance timelines, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (‘Ordinance’) was passed. The Ordinance, inter-alia, extended timelines falling between 20 March 2020 and 29 June 2020 to 30 June 2020. This period was further enhanced to 31 December 2020 and the timeline extended to 31 March 2021 by Notification No. 35/2020. (Please click here to read our alert on this notification).
Recently, the Central Board of Direct Taxes (CBDT) issued another Notification amending Notification No. 35/2020. We, at BDO in India, have analysed and summarised this Notification hereunder:
Extension in timeline for filing belated / revised tax return for fiscal year (FY) 2018-19
The timeline for filing the belated / revised tax return for FY 2018-19 have been extended from 31 July 2020 to 30 September 2020.
Relaxation to resident senior citizen
Any tax paid by resident senior citizen having income other than income chargeable under the head “Profits and gains of business or profession” within the due date (before extension) of filing tax return will be considered as advance tax for FY 2019-20.
While the economy is opening up, there are still many challenges being faced by the taxpayer. With Unlock 3.0 just announced, complete lockdown continues to be in containment zones. In light of various restriction still in place, extending the due date for filing income tax return for FY 2018-19 is a welcome move.
Further, it is provided that the taxes paid by resident senior citizen before the original due date of filing the tax return (i.e. 31 July 2020) would be treated as advance tax. This will give much relief to such resident senior citizens since the interest exposure for non-payment of advance tax shall be mitigated. In other words, if the resident senior citizen pays tax before the due date, he / she will not be liable to interest either under section 234B or 234C of the IT Act. Hence, where such senior citizen has paid taxes and is still required to pay self-assessment tax at the time of filing the return of income, the credit for taxes paid between 01 April 2020 and the original due date of filing the tax return would be considered as advance tax and only if the difference is above INR 0.1 mn, the interest will be levied. It is imperative to note that CBDT had issued Circular No. 2/2015 dated 10 February 2015 to provide that no interest under section 234A of the IT Act is chargeable on the amount of self-assessment tax paid by the taxpayer before the due date of filing the tax return.
 Notification No. 56/2020/ F. No. 370142/23/2020-TPL dated 29 July 2020