Sunday, 20 September 2020

Lok Sabha passes The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020

Lok Sabha passes The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 

The lower house of the Parliament, the Lok Sabha has passed Lok Sabha passes The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020. 


As per bill there is no extension of due dates of income tax and audit reports. The dates stand at 30th September 2020 for AY 2019-20 , 30th November 2020 for AY 2020-21 and for Audit reports 31st October 2020.


NO EXTENSION

The amended taxation bill passed by loksabha. The ambiguity of language created an impression that dates for filing ITRs etc has been extended. However that is not true. 

The bill starts from third proviso of section 3 which is as under:

“Provided also that where the specified Act is the Income-tax Act, 1961 and the compliance relates to—

(i) furnishing of return under section 139 thereof, for the assessment year commencing on the

(a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted;

(b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of November, 2020” had been substituted;

(vii) furnishing of report of audit under any provision thereof for the assessment year commencing on the 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st day of October, 2020” had been substituted:“

 

Now after reading the above amendments many believed for once that due date have been extended to 31 March 2021 for all income tax returns and tax audit reports.

However, that’s not true. If one reads the above bill carefully the first sub section extends all the due date between 20 March 2020 to 31 December 2020 to 31 March 2021 whereas the next proviso clarifies that for various due dates shall not extend to 31 March 2021 where it will extend to some specific date. For eg:

1. Due date for return of A.Y. 2019-20 will be 30 September 2020 instead of 31 March 2021.

2. Due date for return of A.Y. 2020-21 u/s 139(1) will be 30 November 2020 instead of 31 March 2021.

3. Due date for tax audit report for A.Y. 2020-21 will be 31 October 2020 instead of 31 March 2021.

Thus there is no extension as on 19 September 2020 for ITR filing or Tax Audit Due date.


Click Here to Download RACP Bill, 2020


Compiled by :

CA IP Mukesh Mittal
B.Com., FCA
Insolvency Professional
Independent Director
Certified Concurrent Auditor 
9215536951, 9813340495
ca.mukeshmittal@gmail.com
https://camukeshmittal.blogspot.com

DISCLAIMER: The Author have taken utmost care while drafting the article but it may occur that certain error creeps in. This article is for academic purpose and should not be treated as a professional advice. The readers are advised to refer the relevant bill, act, circular or notification before making any judgment. 

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