Amid fears of the Coronavirus pandemic taking a toll on the country’s economic health, the government, on March 24, 2020, announced a slew of measures, including a tax amnesty programme and extended the deadline for filing of Goods and Services Tax returns, to support growth.
New income tax returns filing date is June 30, 2020
In a press conference, finance minister (FM) Nirmala Sitharaman announced that tax payers could file their annual returns by June 30 instead of the March 31 deadline for the financial year that ended March 31, 2019. In this year’s Budget announced on February 1, 2020, the centre had made changes in the tax slabs with an aim to simplify the income tax law.
The centre has also extended the date to link Aadhaar with PAN numbers till June 30 from the earlier deadline of March 31. (Both these documents are crucial to make property purchases in India.)
“The FM has made a slew of announcements, which largely defer mandatory filing dates in most instances from March 31 to June 30, 2020. This rescheduling of regulatory compliances is much appreciated, to combat the current statutory dues,” said Niranjan Hiranandani, president, NAREDCO.
The FM also said the government would soon announce a relief package to support the economy, in the wake of the pandemic, which is likely to adversely impact global economic growth with total infections hitting 400,000 worldwide, as on March 24, 2020. Fitch Ratings has lowered India’s growth forecast to 5.1% for FY 2020-21, saying the Coronavirus outbreak is likely to hit business investment and exports. In December 2019, the agency had projected India’s growth at 5.6% for 2020-21. In its upcoming policy meet in April, the RBI is likely to announce a rate cut, to support the economy.
The industry is also looking forward to broader economic packages like a one-time roll over for debt restructuring across sectors in the-soon-to-be announced economic package, Hiranandani added.
Lauding the government move, NAREDCO vice-chairman Parveen Jain said, “Taking into consideration the economic after-effects and consequences of this unavoidable shutdown and uncertainty over how long this pandemic may last, dates for various economic procedures have been extended for the relief of various stakeholders and economic decisions have been procrastinated diligently till the whole current life scenario comes back to normalcy.”
Among the other support measures that the FM announced on March 24 include lowering interest rate on delayed payments for FY19 to 9% from 12%.
In a move to support businesses, the centre has also decided to extend the last date for GST (Goods and Services Tax) returns for March, April and May months to June 30. The FM also announced that if independent directors of companies had not been able to hold even a single meeting due to the contagion, it would not amount to any violation.
“Regulatory relaxations in the form of extension in timeline for filing of tax returns will provide much required reprieve to individuals and businesses in these trying times. Also, measures like no late fees, penalties and interest on deferred payment for companies with turnover less than Rs 5 crores, is a step in the right direction as SMEs will be severely hit by the current economic turmoil,” said Shishir Baijal, chairman and managing director, Knight Frank India, adding that industry players are keenly awaiting a broad economic stimulus package by the FM.
What is the last day to file ITR for FY20?
The last date has been extended to June 30, 2020.
What was the earlier date for filing ITR for FY20?
The earlier deadline was March 31, 2020.