Extension in due date of ITR & Audit- Decoding the Ambiguity

THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) BILL, 2020 has created a lot of confusion regarding due dates of filing Income tax Returns for FY 2019-20 and FY 2020-21 and few other due dates.

Let us first refer the Bill As Introduced in Lok Sabha:

(1) Where, any time limit has been specified in, or prescribed or notified under, the specified Act which falls during the period from the 20th day of March, 2020 to the 31st day of December, 2020, or such other date after the 31st day of December, 2020, as the Central Government may, by notification, specify in this behalf, for the completion or compliance of such action as—

..........................

and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action shall, notwithstanding anything contained in the specified Act, stand extended to the 31st day of March, 2021, or such other date after the 31st day of March, 2021, as the Central Government may, by notification, specify in this behalf

Provided that the Central Government may specify different dates for completion or compliance of different actions

So, ITR filing dates for AY 2019-20 and 2020-21 have been extended up till 31^st March 2021?

No, the ambiguity of language of this Bill created an impression that dates for filing ITRs etc has been extended. However that is not true.

Provided also that where the specified Act is the Income-tax Act, 1961 and the compliance relates to—

(i) furnishing of return under section 139 thereof, for the assessment year commencing on the—

(a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words "31st day of March, 2021", the figures, letters and words "30th day of September, 2020" had been substituted;

(b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words "31st day of March, 2021", the figures, letters and words "30th day of November, 2020" had been substituted;

(vii) furnishing of report of audit under any provision thereof for the assessment year commencing on the 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words "31st day of March, 2021", the figures, letters and words "31st day of October, 2020" had been substituted

Any law is required to be read in whole and not in piecemeal.

Hence, on reading the Bill as a whole, the following are the extended dates for furnishing return of income and tax audit report for the AY 2019-20 and AY 2020-21-

The views expressed by the author is based on his understanding of law and the prevailing circumstances. Taxpayers are requested to use the views judiciously and author shall not be liable for any gain/loss which might arise by referring his article.

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