Within the wake of the second wave of the coronavirus pandemic, the Central Board of Direct Taxes (CBDT) has prolonged the deadlines to file earnings tax returns for the monetary yr 2021.
The final date of submitting Tax Deducted at Source (TDS) for the fourth quarter of economic yr 2020-21 has been prolonged to June 30, based on the round issued by the Revenue Tax division. Earlier, the due of submitting the TDS was June 30. Accordingly, the due date of issuance of Type 16 has additionally been prolonged to July 15 from June 15.
“In such a COVID-19 pandemic state of affairs, it’s a large reduction for particular person taxpayers and companies. It was changing into troublesome for taxpayers to adjust to such deadlines as a result of a number of points like non-availability of funds for small companies, household well being points, motion from one place to a different and so forth., making compliance troublesome for companies. Therefore, It is going to give them extra time to adjust to the deadlines and keep away from any penalties, late charges and so forth,” mentioned Abhishek Soni, co-founder and chief government officer, Tax2win.
“This can be a main reduction for the TDS deductors since these returns contain lot of data and knowledge to be reported appropriately,” Sujit Bangar, founder, Taxbuddy.com talked about.
Key issues to recollect whereas submitting TDS returns
1) Within the newest TDS return submitting types, yet another column has been added for these staff who need to go for the brand new tax regime. Accordingly, on the time of submitting the TDS return, the employer (deductor) has to pick out the choice for individuals who are going to go for the brand new tax regime, Soni commented.
2) If the TDS deducted in annually, exceeds Rs 50,000 and if the person has not filed TDS within the final two years, the federal government will cost extra TDS whereas submitting the returns. Explaining this new rule, Abhishek Soni mentioned, “In Funds 2021, a brand new part 206AB was launched to deduct TDS at a better price on instances with sure nature of earnings. The place the return of earnings not filed for the earlier two years and TDS deducted in annually exceeds Rs 50,000. The speed of TDS might be larger of the beneath limits a) Twice the speed specified beneath the related part/provision or b) Twice the speed/charges in power or c) Charge of 5 per cent.
3) “In case the quantity of tax payable in money on the time of submitting the ITR is greater than Rs 1 lakh, then the penal Curiosity beneath Part 234A shall apply from the unique due date of submitting the ITR. For instance, if the tax payable by an assessee is Rs 5 lakh, the advance tax paid is Rs 1 lakh and the TDS/TCS is Rs 2 lakh. Therefore for this assessee the tax payable in money on the time of submitting the return is Rs 2 lakhs (which is larger than Rs 1 lakh). For this assessee the due date of submitting ITR is July 31. The curiosity beneath the Part 234 might be chargeable at 1% from August 1 regardless of extension of due date of submitting earnings tax returns until September 30. This can be a dampner of types on this extension round,” mentioned Vivek Jalan, accomplice, Tax Join Advisory Companies, a multi-disciplinary tax consultancy agency.
Now taxpayers have time until September 30 for furnishing return of earnings for the Evaluation 12 months 2021-22. Audit Assessees can file earnings tax returns by November 30. Due date of furnishing Tax Audit Report prolonged to October 31. People can file belated/revised return of earnings until January 31, 2022.
“The extension of assorted submitting timelines is certainly a reduction for corporates. The tax withholding on wage for FY 20-21 had added complexities when it comes to figuring out taxable employer contributions to PF, NPS and Superannuation, figuring out and reporting curiosity accretions on the identical, enabling staff to avail the deemed Depart Journey Concessions and so forth,” mentioned Saraswathi Kasturirangan, Associate, Deloitte India.