Extended Last Date For Income Tax Returns For Financial Year 2018-19

As part of the COVID-19 relief

Showing concern to the difficult circumstances that arose out of nationwide curfew and lockdown due to the spread of COVID-19 pandemic, Government of India has decided to extend the deadline of the following Income Tax Declaration processes for FY 2018-19:

• Belated Income Tax Return as per Section 139(4) of IT Act, 1961
• Revised Tax Return as per Section 139(5) of IT Act, 1961

Any taxpayer, who has a due on any of these filings can complete it within June 30, 2020, in place of the normal deadline of March 31, 2020.

This announcement is made by Finance Minister Nirmala Sitharaman in a Press Conference held on March 24, 2020.

Now, see how a taxpayer be benefitted with this relaxation

Example 1 (Case of Belated Return):

Suppose Varun, a salaried employee has an annual income of INR 8 lakh in FY 2018-2019. He missed the ITR filing deadline of July 31st /31st aug 2019 of the following A.Y. Also, due to COVID-19 lockdown, he faced problems in processing his Belated ITR return. So, now he can avail the relaxation time as announced and file his Belated IT Return within June 30, 2020.

Example 2 (Case of Revised Return):

Nikhil made his IT Return for his income of FY 2018-2019 before July 31st, 2019 (scheduled deadline of IT Return). Later he noticed some unintended errors in his IT Return and wished to revise it. But, he could not do it due to COVID-19 lockdown. Now, he can submit his Revised IT Return by June 30, 2020.

Belated IT Return section 139(4)

Paying income tax and file requisite ITR on time should be the loyal practice of a taxpayer in India. For this purpose, Section 139 of IT Act explains about the Return Filing Deadlines, such as Normal Return, Belated Return, Revised Return, Defective Return, etc. In case a taxpayer misses the normal IT Return deadline, he/she is given an option of making Belated IT Return Filing. But, based on the delay, such Belated Return may amount to penalties and other monetary obligations.

Provisions of Normal and Belated IT Return as per Section 139

Section 139 (1)

Gives guidelines of mandatory and voluntary ITR filing option based on a threshold value of income, where one whose income exceeds it should compulsorily pay the income tax and submit ITR within deadline. This includes the taxpayers with assets located outside India and those who are signing authority of any foreign accounts. For others, ITR filing is voluntary.  

Due Date of ITR Filing (subject to change based on decision on special circumstances)

• Non-Audited Case (where Books of Accounts is not maintained): July 31st of the following A.Y.
• Audited Case (where Books of Accounts is not maintained): September 30th of following A.Y.

Section 139 (4)

Gives guidelines of late filing of ITR, in case:

• Due date as specified in 139(1) is missed by any chance
• Return not filed in due date and the taxpayer has received a notice u/s 142(1)

In either of the case, the taxpayer can file belated return within a period of one year from assessment year or before the completion or conclusion of the assessment as per section 144, whichever earlier. Penalties may be imposed as per the situation u/s 234F (applicable from April 1, 2018 onwards).

Due Date of Belated ITR Filing (subject to change based on decision on special circumstances):

• March 31st, i.e. one year from the following AY of actual ITR filing

Obligations on Late Filing of ITR

• As per Section 234F, if ITR due date is missed but it is submitted before December 31, the penalty would be Rs. 5000. If the late filing goes beyond January 1, Rs. 10,000 penalty will be imposed. Penalty is reduced to Rs. 1000, for small taxpayers of income less than Rs. 5 Lakh.
• No losses (except from House Property) out of ‘Capital Gains’, ‘Profits and Gains of Business/Profession’ can be carried forward
• As per Section 234A, 1% simple interest per month/part of the month is levied over the unpaid tax counted from the ITR due date till it is actually submitted in addition to the penalty amount.
• As per Section 244A, no interest on any refund, in case of excess tax payment of previous FY will be allowed
• In case of defaulting in ITR filing of income more than Rs. 25 Lakh, the income tax officer may initiate proceedings for prosecution for a term of 3 months to 2 years (may extend to 7 years) in addition to a fine amount.
• Up to 50% penalty, in case of under-reporting of income

Benefits of Timely ITR Return

• A taxpayer can avail trouble loans, such as, House Loans, Vehicle Loans, etc.
• Eligibility for Tax Refund
• Authentic document of Income and Address Proof
• Fast processing of Visa application
• Carry forward losses
• No penalty/prosecution trouble. 

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