The government has extended certain tax compliance timelines due to the Covid-19 pandemic. “In the light of several representations received and to address the hardship being faced by various stakeholders, the Central Government has decided to extend the time limits to 30 June 2021 in the following cases where the time limit was earlier extended to 30 April 2021 through various notifications issued under the Taxation and Other Laws (Relaxation) and Amendment of Certain Provisions Act, 2020,” Ministry of Finance said.
“Given the severe Covid-19 pandemic raging unabated across the country affecting the lives of our people, and because of requests received from taxpayers, tax consultants and other stakeholders that various time barring dates, which were earlier extended to 30 April 2021 by various notifications, as well as under the Direct Tax Vivad se Vishwas Act, 2020, maybe further extended, the Government has extended certain timelines today,” the ministry said.
Govt extends tax compliance timelines in the following cases:
(i) Time limit for passing of any order for assessment or reassessment under the Income-tax Act, 1961(hereinafter called ‘the Act’ ) the time limit for which is provided under section 153 or section 153B thereof;
(ii) Time limit for passing an order consequent to the direction of DRP under sub-section (13) of section 144C of the Act;
(iii) Time limit for issuance of notice under section 148 of the Act for reopening the assessment where income has escaped assessment;
(iv) Time Limit for sending intimation of processing of Equalisation Levy under sub-section (1) of section 168 of the Finance Act 2016.
It has also been decided that the time for payment of the amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without an additional amount, shall be further extended to 30 June 2021.
Notifications to extend the above dates shall be issued in due course.
In February, the Central Board of Direct Taxes (CBDT) had extended the due date for filing declaration under the ‘Vivad Se Vishwas’ (VSV) scheme till 31 March 2021.
The Direct Tax ‘Vivad se Vishwas’ Act, 2020 was enacted on March 17 2020, to reduce pending income tax litigation, generate timely revenue for the government and benefit taxpayers.