As a major relief for taxpayers, the government has extended compliance deadlines relating to income tax as well as the main tax for Google and service tax. The government has waived late fees to reduce compliance burden amid the second wave of the Covid-19 epidemic. With the rapidly growing Covid-19 cases in the country, experts are of the opinion that the government may need to push the deadline.

Compliance extension Related to Tax, Accordingly Central Board of Direct Taxes

The CBDT said in a statement that due to adverse conditions caused by the Kovid-19 epidemic and after considering multiple requests from taxpayers, tax advisors and other stakeholders across the country, requesting an exemption in compliance dates, the government today announced some Has extended the deadline. .

The Ministry of Finance had received several industry representations from MSMEs (Micro, Small and Medium Enterprises) for up to 3 months of breath taking. The due date is extended in respect of FY 2019-20, GSTR-1 (Sales Return), GSTR-4 (Annual Composition Return), GSTR-3B (Summary Return), filing or amended income tax returns for filing appeals. And payment of taxes. In addition, the rate of interest has been rationalized and late fees have also been waived in many cases.

CBDT Exemption given to Taxpayers

The list of exemptions granted to taxpayers with tax-related compliance between Kovid-19 is as follows:

• The appeal to the Commissioner under Chapter XX of the Income Tax Act has been extended till May 31, 2021 or for the time conferred under that section, whichever is later. Earlier, the deadline was 1 April 2021.

• The objection to the Dispute Resolution Panel under Section 144C of the Income Tax Act has been extended till May 31, 2021 or for the time provided under that section, whichever is later. The first filing deadline was 1 April 2021.

• In response to a notice under section 148 of the Income Tax Act, the income tax return has been extended till May 31, 2021, or the time allowed under that notice, whichever is later. The first filing deadline was 1 April 2021.

• Filing of amended returns under sub-section (4) of sub-section (5) of section 139 of the Income Tax Act for the assessment year 2020-21 and filed under section 139 of the Income Tax Act for the assessment year 2020-21 can go. The provision to be filed on or before 31 March 2021 is certain.

• Payment of tax deduction under Section 19-1A, Section 194-1B and Section 194M of Income Tax Act and filing of challan cum statement for deducted tax can now be paid on or before 31 May 2021 and furnished. can be done. Before this it had to be done first. Paid and furnished by 30 April 2021 under Rule 30 of the Income Tax Rules 1962.

• Statements in Form 61, details of declarations received in Form 50, can be furnished on or before 30 April 2021.

Extension of GST Compliances

The Ministry of Finance has noted nine changes in GST compliance requirements. Notification has been issued based on the recommendations of the GST Council, which is as follows:

• Businessmen with a turnover of more than 5 crores in the preceding financial year waive their late fees when they fail to submit their returns in GST Form-3B within 15 days from the due date for March and April.

• Businesses with a turnover of up to Rs 5 crore, delay charges are waived for up to 30 days during two months. Taxpayers have a turnover of up to Rs 5 crore, a 30-day window applicable from January to March.

• The date of submission of returns in Form GSTR-4 of CGST Rules, 2017 for the financial year ending 31 March 2021 has now been extended by one month to 31 May 2021.

• The government also extended the period of declaration to be submitted in Form GST ITC-04 in respect of goods received from such laborers or such laborers during the period from 1 January to 31 March to 20 May 2021.

• The government gave the officers more time to perform their statutory duties in view of the raging epidemic.

Expert Observations Detailing Tax Related Compliance

As you will be aware of the fact that many parts of India are facing some kind of bandh. Tax experts believe that SMEs would have been one of the most affected areas had the tax related compliance deadline not been extended.

Shailesh Kumar, Nangia and company LLP partner, are of the opinion that the government has given much needed compliance relief to the taxpayers, and if the situation in the country does not improve in future, the government may have to push these deadlines. A large number of people reel under the epidemic.

EY’s tax partner Abhishek Jain said that with the unprecedented boom in epidemics and lockdowns in many parts of the country, many industry players will find it difficult to meet the GST compliance deadline. Therefore expansion will provide much needed relief.

Sachin Taparia, president and founder, local circles said the government may have to extend the deadline until June 30, unless the small businesses are prevented from filing, the lockout and ban will continue until May 24.

Also Read : How to file income tax for private limited company ?

Conclusion

Likewise, this is no doubt a much-needed relief for taxpayers and businesses as the deadline for tax related compliance has been extended. The Covid-19 epidemic has caused so much uncertainty in everyone’s mind that it has become mandatory to make informed decisions. The way things are moving, we may see another expansion in the future.