On account of COVID-19 there was complete lockdown w.e.f. 25.03.2020 and all the offices etc. could not work. Therefore, an Ordinance dated 31.03.2020 called “The Taxation and Other Laws (Relaxation of Certain Provision) Ordinance, 2020” was promulgated providing that any action or compliance, due date for which was falling between 20.03.2020 to 29.06.2020, shall be extended to 30.06.2020 or any other date as may be further extended by the Central Government by way of notification. Thereafter, a notification dated 24.06.2020 was issued by the government further extending time limit for certain compliances under the Income Tax Act. A notification dated 29.07.2020 was also issued subsequently by the Central Government further extending time limit for filing return of income for A.Y. 2019-20. In order to validate the Ordinance and above refereed notifications, a Bill called “The Taxation and Other Laws (Relaxation of Certain Provision) Bill, 2020” was introduced in the Parliament. The aforesaid Bill was duly passed by the Parliament and on receiving assent of the President of India on 29.09.2020 it became the Act. Thereafter, notification dated 30.09.2020 has also been issued by the Government further extending time limit for filing return of income of A.Y.2019-20.

As per above referred Ordinance / notifications and the validation Act, as a general rule all the due dates, which are falling during the period 20.03.2020 to 31.12.2020, have been extended to 31.03.2021. In respect of certain compliances extended due date, however, has been restricted to a date prior to 31.03.2021 as has been specifically provided in Validation Act. Now, the extended due dates for respective compliances under various provisions of IT Act are as under: –

Suggestion for CBDT

The Government (CBDT) has been quite considerate in taking cognizance of the position arising out of Covid-19. Necessary notifications have been issued well before time extending the time lines for compliances. Same have provided great relief to assesses and tax practitioners. There are however, following issues which need further attention of CBDT and necessary action in respect thereof: –

1. As per extended dates all audit reports, including tax audit report, are required to be filed by 31.10.2020 and returns of income are to be filed by 30.11.2020. Till now Covid position has not improved satisfactorily. Offices of assesses and of Chartered Accountants are not working regularly and to their full capacity. Therefore, it is not possible to prepare, finalise and file tax audit and other audit reports before 31.12.2020. Hence, it is necessary and desirable that due date for filing all audit report should be extended by 3 months i.e. till 31.01.2021. It may also be stated in this regard that vide Circular No.28/2020 dated 17.08.2020 Ministry of Corporate Affairs has clarified that concerned Registrar of Companies will grant extension upto 3 months i.e. upto 31.12.2020 for holding annual general meetings for approval of accounts for the year ended 31.03.2020. In case accounts are approved by 31.12.2020 it is not possible to file Tax Audit Report by 31.10.2020. Hence, extension upto 31.01.2021 is justified.

2. Due date for filing return of income in the cases of all the assesses should be extended to 31.03.2021.

3. Due date for completing the assessment by the department for A.Y.2019-20 at present, as per the law is 31.03.2021. There is no extension till date in this regard. Due date for issuing notices u/s 143(2) of the Act stands extended up to 31.03.2021 in respect of returns filed by 31.03.2020 and up to 30.09.2021 in respect of returns being filed during the current financial year. Therefore, due date for passing the assessment order needs to be extended till 31.03.2022.

4. As per Vivad se Vishwas Scheme Designated Authority can issue the certificate determining the amount payable within 15 days from receipt of declaration filed by the assessee. As per Validation Act all due dates for compliance by the Authorities falling between 20.03.2020 to 31.12.2020 stands extended to 31.12.2020. Accordingly, Designated Authority can issue certificate in respect of all the applications received up to 16.12.2020 till 31.12.2020. In case certificate is issued by the DA on 31.12.2020, the assessee will not be able to make payment of amount without additional amount before 31.12.2020. Hence, date for making payment by the assessee without additional amount needs to be extended by 15.01.2021, allowing the assessee time of 15 days from receipt of the certificate issued by the Commissioner. Date till when the Scheme will remain in force also needs to be notified. It should be specified till when the assessee can file the declaration. Last date till when the payment can be made under the scheme should also be specified.