The Finance Ministry of India made a new announcement in which it notified that the date to fill the ITR of 2019-2020 has been extended to Jan 31, 2021. The deadline for individual ITR Taxpayers had been set differently. They have to fill their ITR by 31st December. There are a lot of taxpayers in whose account the auditing is yet to be done. For such taxpayers, the date has been extended to January 31, 2021.
It was said by Sandeep Jhunijhunwala who is also a Nangia Anderson LLP partner that there is ambiguity regarding the extension of the ITR filling rates. Even when the dates have been extended there were confusions regarding the extent of it for different sectors. There are a lot of foreign companies with their investment in India and earning profits from India. For these foreign companies’ tax audit and transfer price, reporting was not applicable. It was not made clear how these extensions in ITR filling would be applicable to these foreign companies.
The notice released today had cleared all the confusion regarding this matter. The extension of the ITR filling was also extended to the corporates to whom tax audit and transfer pricing reporting were not applicable. They have the option to fill their ITR by Jan 31, 2021. This option was only made applicable to the companies. However, the individuals, have to file their tax returns by December 31, 2020.
In the wake of the pandemic, there were a lot of economic disruptions caused. Due to the complete lockdown and the gradual unlock down, many corporates and individuals faced financial loss. The extension has given a lot of relief to the taxpayers who faced the hardships of the pandemic.