New ITR Deadlines Explained
A look at extended ITR deadlines following under challenging times
When our lives get affected by a significant event, we always hope things will get better. The current COVID-19 outbreak has affected thousands of people in India and around the world. However, in India, things are looking a little more positive, especially in terms of managing finances and tax payments. The finance ministry has announced extended deadlines on income tax return filing. There are also some other measures in place to make your life easier; let's take a look.
To make lives a little easier for taxpayers, the government has extended some deadlines for income tax returns and investments. Here they are:
New timeline for making tax-saving investments
Under Section 80C of the Income Tax Act, you can claim a deduction in the taxable income of up to Rs. 1.5 lakh by investing in various schemes like Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS), National Savings Certificates (NSC), and so on. The last date for making these investments is usually 31 March. However, the government has now extended this deadline to 30 November.
Late income tax returns filing
Per Income Tax Act guidelines, you have to complete your income tax return filing by 31 July every year. If you haven't done so, you have the option of filing the returns before 31 March of the same assessment year. For example, if you haven't filed your income tax returns for the financial year 2018-19 by 31 July 2019, you can submit them by 31 March 2020 by paying a penalty of Rs. 10,000. You also have to pay interest on taxes due till such time you file the return.
Now that there has been an income-tax return date extension to 30 November, you needn't worry about meeting the deadline. However, you will still have to pay the penalty for late filing. The penal interest, which was earlier 12 percent per annum, has been reduced to 9 percent, so that some relief too.
It is now mandatory to link your PAN (Permanent Account Number) and Aadhaar numbers. The deadline for this linking was 31 March 2020. However, given the extraordinary circumstances, the Income Tax department has extended this deadline to 30 June.
Remember that if you don't do the linking before 30 June, your PAN number will be rendered inoperative. You won't be able to use this for income tax returns filing. If you do, you could end up paying a fine of Rs. 10,000. It's not complicated, and you can do it online at the Income Tax Department's web site. So there's no reason for you to delay it anymore.
Now that you know you still have time to make investments, grab this opportunity. Start your tax-saving ELSS investments through our digibank by DBS account. It's quick, paperless, convenient and safe - #practisesafebanking.