June 20, 2021

Income Tax Return: Taxpayers Should Not Miss this Important Deadline In June

The Central Board of Direct Taxes (CBDT) has extended the deadlines to file income tax returns for the financial year 2021. The last date of filing Tax Deducted at Source (TDS) for the fourth quarter of financial year 2020-21 has been extended to June 30, according to the circular. Earlier, the due of filing the TDS was May 31. “This is a major relief for the TDS deductors since these returns involve lot of records and data to be reported correctly,” Sujit Bangar, founder, Taxbuddy.com mentioned.

Accordingly, the due date of issuance of Form 16 has also been extended to July 15 from June 15.

Key things to remember while filing TDS returns

1) In the latest TDS return filing forms, one more column has been added for those employees who want to opt for the new tax regime. Accordingly, at the time of filing the TDS return, the employer (deductor) has to select the option for those who are going to opt for the new tax regime, said Abhishek Soni, co-founder and chief executive officer, Tax2win.

2) If the TDS deducted in each year, exceeds Rs 50,000 and if the individual has not filed TDS in the last two years, the government will charge more TDS while filing the returns. Explaining this new rule, Abhishek Soni said, “In Budget 2021, a new section 206AB was introduced to deduct TDS at a higher rate on cases with certain nature of income. Where the return of income not filed for the previous two years and TDS deducted in each year exceeds Rs 50,000. The rate of TDS will be higher of the below limits a) Twice the rate specified under the relevant section/provision or b) Twice the rate/rates in force or c) Rate of five per cent.

3) “In case the amount of tax payable in cash at the time of filing the ITR is more than Rs 1 lakh, then the penal Interest under Section 234A shall apply from the original due date of filing the ITR. For example, if the tax payable by an assessee is Rs 5 lakh, the advance tax paid is Rs 1 lakh and the TDS/TCS is Rs 2 lakh. Hence for this assessee the tax payable in cash at the time of filing the return is Rs 2 lakhs (which is greater than Rs 1 lakh). For this assessee the due date of filing ITR is July 31. The interest under the Section 234 will be chargeable at 1% from August 1 irrespective of extension of due date of filing income tax returns till September 30. This is a dampner of sorts in this extension circular,” said Vivek Jalan, partner, Tax Connect Advisory Services, a multi-disciplinary tax consultancy firm.

CBDT earlier extended the deadline for filing income tax returns (ITR) for FY 2020-21 (AY 2021-22) to September 30. “The Central Board of Direct Taxes, in exercise of its power under section 119 of the Income-tax Act, 1961, provides relaxation…,” the official statement mentioned.

“Various due date relaxations will reduce compliance burden for businesses that have been struggling in the current crisis. This also emphasizes how critical it is for businesses to move their tax compliance fully online,” said Archit Gupta, founder and chief executive officer, ClearTax.

Souce:-news18

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