The government of India has issued a notice for extension in date of filing Income Tax Return (ITR). The date had been extended from July 21, 2020, to November 30, 2020. Income Tax slabs rates in India had been made under some reforms which you will know in this article. The deadline for filing had been shifted, therefore. The extension came into light when the government had extended various income tax-related filing dates for everyone. The extension had been made via an ordinance that was dated by March 31, 2020. The extension in date was made in March to June 30, 2020.
The decision of extension in date for filing of all income tax return was made by the Central government while it drew up to Rs 20 lakh crore to handle the situation of the international crisis. The decision was made as a part of Direct Tax measures to counter the damage to the economy of the country caused by the 7-week lockdown. The lockdown was arranged without any prior notice and due to this whole nation is suffering from economical loss. Due to this Pandemic caused, all public and private sector business had been put to a halt. This situation resulted in the drop-down of the economy. Therefore this decision had been made by the Centre. If it were not been done then people would have only one month’s time for filing ITR.
Decision Made by the Central Government
The last date, according to income tax law, for filing TDS returns is May 31, for an employee. But the date had been, extended by the Centre, for giving them enough time for paying their Income Tax return. Last year too, the date for filing Income Tax return was extended to August 31, 2019. But Income Tax Slabs rates in India did not get effect due to this at that time even. This announcement, for extension in date of the deadline for payment of ITR, was made by Union finance minister Nirmala Sitharaman. She explained the contours of the package announcement to Prime Minister Narendra Modi. After then the notice was made public for every individual. She also announced that the tax audit date will also be shifted from September 30, 2020, to October 31, 2020.
The government made it public to every individual that the date of assessments that was declared as September 30, 2020, got shifted to December 31, 2020, and also the date that was locked on March 31, 2021, will be shifted to September 30, 2021. It was said in terms of “Vivid is Vishwas” Scheme that an individual will not have to pay any additional amount for the date December 31, 2020.
Some Reduction made in rates by Government
Ms. Nirmala Sitharaman while discussing the outline of contours of the packages, announced 15 different measures. These measures involved MSMEs (Micro, Small and Medium Enterprise), NBFCs (Non-Bank Financial Companies), taxation, Provident Fund, and Real Estate.
Income tax slabs rates in India had met some reforms. The Government of India had offered a reduction of 25 percent TDS (tax deduction at source) for non-salaried specified payments and TCS (Tax collection at source) for the specified payments. The government has also decided to pay EPF for all employees of MSMEs (Micro, Small and Medium Enterprises) to help them in the pandemic situation. The Government reduced the rate EPF for three months from 12 percent to 10 percent.
This all is about the relaxation provided by the government in this coronavirus pandemic crisis for Income tax returns.
