Government will need to extend ITR dates: Experts

Due to the rising cases of COVID 19, Government may need to extend the deadlines of ITR again. This is what experts think. Recently, due to the lockdown, the government had already provided various relaxation to the taxpayers. Now, as cases are again rising, experts think that there is need to extend it again.

Gaurav Mohan, CEO AMRG & Associates said, “Considering the current situation, more and more relief measures are needed for the taxpayers to keep the economy rolling which are being introduced with time”.

On the extension date of filing of income tax return in view of the pandemic, Naveen Wadhwa, DGM, Taxmann said, “The due date of furnishing return of income for all assessee for the financial year 2019-20 has been extended to November 30, 2020 in place of July 31 and October 31, 2020. Hence, all the assessee who are required to file ITR by July 31, 2020, or October 31, 2020 can file their return of income till November 30, 2020, without paying any late fee charges”.

However, “if the self-assessment tax liability of a taxpayer exceeds ₹1 lakh, he would be liable to pay interest under section 234A from the expiry of original due dates provided in the Income-tax Act,” Wadhwa added.

The government has extended deadline for investment upto 31st July for claiming tax deduction for 2019-20. On this, Kapil Rana, Founder Chairman, HostBooks Limited said, “This relief will help taxpayer to make their tax planning and reduce tax liability, who could not make their saving for the financial year 2019-20 due to this COVID-19 situation”.