The Income-tax Department has announced a series of revised due dates across various compliance requirements under the Income-tax Act. These changes are primarily aimed at easing procedural pressures and providing relief to taxpayers, professionals, and institutions amid ongoing challenges. We explored the key revisions impacting different compliance areas such as Equalisation Levy, registration and approvals for trusts and institutions, capital gains investments, and various statements and filings required under the Act.
Equalisation Levy Statement Filing and Intimation
Equalisation Levy, introduced as a measure to tax digital transactions involving non-resident service providers, requires taxpayers to furnish detailed statements and receive processing intimations from the department. For the financial year 2020–21, the original deadline to furnish the Equalisation Levy statement was June 30, 2021. Recognizing difficulties faced by taxpayers due to administrative constraints and pandemic-related disruptions, the deadline was extended and subsequently revised to July 31, 2021.
In parallel, the intimation of processing of Equalisation Levy statements—specifically for cases where the due date for filing fell between March 20, 2020, and March 31, 2021—was initially extended from June 30 to September 30, 2021. This extension ensures that taxpayers receive timely communication regarding processing outcomes without being rushed due to systemic delays.
Extensions for Registration and Approval Applications by Trusts and Institutions
Registration and approval under various sections such as 10(23C), 12AB, 35, and 80G are critical for trusts, charitable institutions, and research organizations to avail tax benefits and exemptions. These applications involve significant documentation and procedural scrutiny.
Initially, applications for registration, provisional registration, intimation, or approval under these sections were due by June 30, 2020. This deadline was extended to June 30, 2021, and now has been further revised to August 31, 2021. This additional time allows such institutions to complete compliance formalities without the pressure of earlier deadlines, especially important as many of these entities operate in sectors affected heavily by pandemic-related restrictions.
Revised Deadlines for Investments Related to Capital Gains Exemption
One of the prominent ways taxpayers can reduce their capital gains liability is by making eligible investments or expenditures as per sections 54 to 54GB of the Income-tax Act. These sections provide exemptions when capital gains from the sale of assets are reinvested in specified assets like residential property or bonds.
For investments falling due between April 1, 2021, and September 29, 2021, the revised deadline for completion of such investments has been set to September 30, 2021. This extension helps taxpayers, particularly those impacted by construction delays or financial uncertainties, to avail exemptions without losing out due to time constraints.
Quarterly Foreign Remittance Statement – Form 15CC
Authorized dealers and entities engaged in foreign exchange transactions are mandated to file quarterly foreign remittance statements using Form 15CC. The statement for the quarter ending June 2021 was originally due on July 15, 2021, but this was revised to July 31, 2021.
This extension ensures that entities involved in foreign exchange have adequate time to reconcile transactions and comply with reporting norms mandated by the Income-tax Department, which plays an important role in monitoring cross-border financial flows.
Statement Filing by Eligible Investment Funds – Form 3CEK
Eligible investment funds are required to file a statement in Form 3CEK under Section 9A(5) of the Income-tax Act for the financial year 2020–21. The original deadline of June 29, 2021, was extended and revised to July 31, 2021.
Given the complex valuation issues and documentation requirements faced by funds in volatile market conditions, this extension offers critical breathing space to finalize statements accurately.
Filing of Withdrawal Applications Before Settlement Commission – Form 34BB
For taxpayers who have filed applications before the Settlement Commission and wish to withdraw those applications, filing Form 34BB is mandatory. The deadline was originally June 27, 2021, and has now been extended to July 31, 2021.
This revision allows taxpayers to reconsider their position or prepare withdrawal applications carefully, especially important where settlement negotiations are ongoing or circumstances have changed.
Aadhaar–PAN Linking Deadline Extension
Linking Aadhaar with PAN is mandatory for taxpayers to avoid the invalidation of their PAN and to file returns seamlessly. The initial deadline for linking was March 31, 2020, but recognizing the challenges faced by many in linking within this timeframe, the due date was extended twice—first to June 30, 2021, and then further to September 30, 2021.
This extension is significant in ensuring taxpayers are not disenfranchised due to procedural bottlenecks and that their filings remain valid for the assessment year.
Assessment and Reassessment Orders by Assessing Officers
Assessment and reassessment orders play a critical role in finalizing a taxpayer’s liability. Where the extended due date for issuance of such orders was set to expire on March 31, 2021, the deadline has now been extended to September 30, 2021.
For cases without any prior extension, the original due date of March 31, 2021, was extended first to September 30, 2021, which now remains the final deadline. This extension helps the department complete assessments thoroughly while giving taxpayers additional time to prepare responses or comply with notices.
Filing Objections Before the Dispute Resolution Panel or Assessing Officer
Under section 144C, taxpayers have the right to file objections against orders passed by Assessing Officers before the Dispute Resolution Panel (DRP) or AO. For objections originally due on or after June 1, 2021, the revised deadline to file objections was set to August 31, 2021.
It is important to note that if the law permits a later date beyond August 31 for filing objections, such later dates will apply. This provision ensures taxpayers have adequate opportunity to raise disputes and defend their cases.
Imposition of Penalties with Revised Due Dates
Penalties imposed under the Income-tax Act serve as a deterrent against non-compliance. The deadlines for imposition of penalties were extended multiple times. For penalties where the original due date fell between March 20, 2020, and June 29, 2021, the deadline was extended to June 30, 2021.
This was further revised to September 30, 2021, if the original due date falls between March 20, 2020, and September 29, 2021. Such extensions prevent automatic or unfair imposition of penalties due to delays outside the control of taxpayers, such as processing backlogs or pandemic disruptions.
Upload of Form 15G/15H for Exemption from TDS
Form 15G and 15H are declarations submitted by individuals and senior citizens, respectively, to avoid TDS on certain incomes. For the quarter ending June 2021, the original deadline for uploading these declarations was July 15, 2021.
This was extended to August 31, 2021. This additional time helps recipients and financial institutions ensure proper documentation is in place, avoiding unnecessary TDS deductions.
TDS Statement Filing for Fourth Quarter of FY 2020–21
TDS statements for the last quarter of the financial year 2020–21 had an original due date of May 31, 2021. This was extended twice—first to June 30 and then revised to July 15, 2021.
The extension is significant for deductors, including employers and others, to file accurate TDS statements, ensuring proper credit to taxpayers and smooth reconciliation.
Issuance of TDS Certificates (Form 16)
Issuing Form 16, which certifies TDS deducted on salary income, is a critical employer compliance requirement. The original due date was June 15, 2021, extended to July 15, and finally revised to July 31, 2021.
Timely issuance of Form 16 enables salaried individuals to file their returns on time and claim accurate tax credits.
Investment Fund Statements to Commissioner and Unit Holders
Investment funds must provide statements of income to tax authorities and unit holders through Forms 64D and 64C, respectively. For the previous year 2020–21, the due date for Form 64D was extended from June 15 to July 15, while for Form 64C, it moved from June 30 to July 31, 2021.
These extensions support compliance by investment funds in providing accurate income details to both the authorities and investors, facilitating transparency and proper reporting.
Income Tax Returns and Audit Compliance Updates
In continuation of the updated compliance timelines issued under the Income-tax Act, this article focuses on the revised due dates relating to Income Tax Return (ITR) filings, audit reports, and other associated compliance requirements for the Assessment Year 2021–22. These changes are significant for individual taxpayers, businesses, auditors, and professionals as they provide necessary relief and clarity in a complex filing environment.
Income Tax Return Filing Deadlines for AY 2021–22
Filing of income tax returns is a fundamental requirement for taxpayers to report their income, claim deductions, and discharge their tax liabilities. The government has revised the timelines for filing returns for different categories of taxpayers based on the nature of their accounts and audit requirements.
Non-Audited Taxpayers (General Assessees)
For taxpayers whose accounts are not subject to audit—typically salaried individuals, professionals, and small businesses without audit requirements—the original deadline to file returns for AY 2021–22 was July 31, 2021. This deadline was extended to September 30, 2021.
It is important to note that no further extension has been granted beyond September 30, 2021. Taxpayers who file their returns after this date may be liable to pay interest under section 234A if their self-assessment tax exceeds ₹1 lakh. Timely filing helps taxpayers avoid interest and penalties and enables smoother processing of refunds.
Audited Taxpayers Without Transfer Pricing Reports
Taxpayers who are required to get their accounts audited under section 44AB but do not have to furnish transfer pricing reports under section 92E originally had the deadline set as October 31, 2021. This was extended to November 30, 2021.
The final due date remains November 30, 2021, and no further extensions are anticipated. Compliance with this deadline is crucial to ensure that audited accounts and returns are filed accurately and on time, avoiding scrutiny and penalties.
Taxpayers Requiring Transfer Pricing Reports (Section 92E)
Entities engaged in international or specified domestic transactions must furnish transfer pricing reports. These taxpayers had an original filing deadline of November 30, 2021, extended to December 31, 2021.
December 31, 2021, is the final deadline. Meeting this deadline ensures compliance with transfer pricing regulations and prevents the risk of notices or assessments based on incomplete documentation.
Filing of Belated or Revised Returns
For taxpayers who miss the original return filing deadlines, there is an option to file belated returns under section 139(4). The last date to file belated or revised returns for AY 2021–22 was originally December 31, 2021, extended to January 31, 2022.
No further extensions beyond January 31, 2022, are allowed. Filing belated returns within this period helps taxpayers rectify omissions and claim benefits such as refunds or carry forward losses, subject to conditions.
Audit Report Submission Deadlines
Audit reports form a key part of the compliance process for taxpayers subject to audit. The Income-tax Act mandates submission of audit reports under sections 44AB and 92E, which are integral to the tax return filing process.
Section 44AB Audit Report for AY 2021–22
Taxpayers whose accounts require statutory audit under section 44AB had their audit reports originally due on September 30, 2021. This deadline was extended to October 31, 2021, which is now the final due date.
Auditors and taxpayers should ensure that audit reports are completed and filed on or before this date. Late submission can attract penalties under section 271B, and may also delay the return filing process.
Transfer Pricing Audit Report under Section 92E
Taxpayers engaged in international transactions or specified domestic transactions must submit transfer pricing audit reports as per section 92E. The original deadline was October 31, 2021, extended to November 30, 2021.
No further extension has been granted. Accurate and timely submission of these reports is critical to avoid scrutiny and potential adjustments during assessments.
Compliance Related to Benami Transactions
The Benami Transactions (Prohibition) Act aims to prevent property transactions made in the name of others to conceal ownership. Compliance under this Act requires submission of declarations and adherence to deadlines.
Where due dates fell between March 20, 2020, and June 30, 2021, extensions were granted up to September 30, 2021. This extended timeline provides an opportunity for affected persons to regularize their positions and comply without the risk of penalties.
Reassessment Notices under Section 148
Section 148 empowers the department to issue reassessment notices where income has escaped assessment. The timeline for issuance of such notices was impacted due to pandemic-related delays.
For cases where the extended date was set to expire on March 31, 2021, the deadline for issuing reassessment notices was further extended and finalized as June 30, 2021. This final extension ensures that taxpayers receive fair notice and sufficient time to respond while providing the department time to complete its due diligence.
Other Important Compliance Filings and Statements
Besides the core filing deadlines for returns and audits, several other forms and compliance requirements have also seen revised due dates.
Statement of Income Distributed by Investment Funds – Form 64D
Investment funds are required to file a statement of income distributed to unit holders using Form 64D. For the previous year 2020–21, the original deadline was June 15, 2021, extended to July 15, 2021. This revision helps funds finalize income distribution statements in a timely manner for compliance and investor information.
Statement to Unit Holders by Investment Funds – Form 64C
The corresponding deadline for issuing statements to unit holders in Form 64C was initially June 30, 2021, and revised to July 31, 2021. These statements assist unit holders in filing their returns accurately with proper disclosure of income received from the funds.
Upload of Form 15G/15H for Quarter Ending June 2021
The due date for uploading declarations in Form 15G/15H to avoid tax deduction at source was extended from July 15, 2021, to August 31, 2021. This allows individuals and senior citizens sufficient time to submit declarations to banks and financial institutions for the quarter.
Filing of TDS Statements for Fourth Quarter of FY 2020–21
TDS deductors were originally required to file quarterly statements by May 31, 2021. This deadline was extended twice, with the final revised date being July 15, 2021. This extension provides more time for employers, businesses, and others responsible for tax deduction to comply with filing obligations.
Issuance of TDS Certificates (Form 16) for FY 2020–21
Issuance of Form 16 certificates to salaried employees certifying TDS deductions was originally due by June 15, 2021. This was extended to July 15, 2021, and subsequently revised to July 31, 2021. Timely issuance of these certificates facilitates accurate tax return filing by employees.
Practical Implications of Revised Deadlines
The series of extensions granted reflect the Income-tax Department’s recognition of the challenges posed by disruptions, including administrative bottlenecks, pandemic-related delays, and procedural complexities. For taxpayers, professionals, and institutions, understanding these revised timelines is crucial for avoiding penalties, interest, and complications.
Timely compliance with the extended deadlines allows taxpayers to maintain good standing with the tax authorities, claim rightful deductions, and prevent avoidable litigation or penalties. Auditors and tax practitioners must also align their work schedules to meet these revised dates, ensuring comprehensive and accurate filings.
Preparing for Final Deadlines
With most revised deadlines now finalized, taxpayers and professionals must focus on completing pending filings and submissions without delay. Key steps include:
- Reviewing outstanding audit reports and ensuring all necessary documentation is in place.
- Finalizing income tax returns for different categories and verifying accuracy.
- Ensuring all associated statements and forms such as Form 15G/15H, TDS certificates, and investment fund statements are duly filed.
- Monitoring communications from the Income-tax Department, including notices related to reassessment and penalty proceedings.
- Coordinating with tax professionals, auditors, and other stakeholders to align on deadlines and avoid last-minute rush.
Overview of Interest and Penalty Provisions Post-Extension
While extensions provide relief, it is important to note that interest under section 234A on delayed filing of returns continues to apply if tax dues are not paid timely. Similarly, penalties for failure to file audits or other reports within the extended deadlines may be levied.
Taxpayers should therefore prioritize compliance to minimize additional financial burdens arising from late filing.
Extension of Due Dates for Imposition of Penalties
Penalties under the Income-tax Act serve as a deterrent against non-compliance and aim to enforce timely and accurate disclosures by taxpayers. Recognizing the extraordinary circumstances in recent times, the government extended the timelines for imposing penalties for several categories.
Extended and Revised Timeline for Penalty Imposition
For penalties where the due date originally fell between March 20, 2020, and June 29, 2021, the government extended the timelines to June 30, 2021. This allowed taxpayers additional time to comply without the immediate threat of penalties.
Subsequently, these timelines were revised further to September 30, 2021, providing a final extension. This means any penalty proceedings that would have commenced in the intervening period have been deferred, reducing pressure on taxpayers.
Types of Penalties Affected
The penalty extensions broadly cover cases including late filing of returns, failure to furnish audit reports, non-compliance with various reporting requirements, and other procedural defaults.
For example, penalties under sections related to failure in filing returns (section 271F), failure to comply with audit report submission (section 271B), and penalties linked to transfer pricing documentation were impacted by these extensions.
Importance of Meeting Final Extended Deadlines
Despite the extensions, it is important to understand that penalties will be strictly enforced after the final revised dates. Taxpayers should leverage this period to rectify pending compliance issues and avoid attracting financial penalties.
Procedural Compliance Extensions
In addition to return filings and penalty timelines, several procedural compliances under the Income-tax Act have seen due date extensions. These procedural steps are critical to ensure transparency, verification, and smooth processing of tax matters.
Filing of Objections to Draft Assessment and Reassessment Orders
Under section 144C, taxpayers are allowed to file objections against draft orders issued by the Assessing Officer or Dispute Resolution Panel. For cases where the original due date for filing objections was June 1, 2021, or later, the deadline was extended to August 31, 2021.
If the relevant provisions allow a date beyond August 31, 2021, that later date applies. This extension gave taxpayers more time to prepare comprehensive responses and avoid adverse consequences from draft assessments.
Withdrawal of Applications to the Settlement Commission
Taxpayers who had filed applications for settlement of disputes with the Settlement Commission had the option to withdraw their applications by submitting Form 34BB. The original deadline was June 27, 2021, which was extended to July 31, 2021.
This extension provided an opportunity to reconsider settlement options and negotiate better terms, reducing prolonged litigation and uncertainty.
Submission of Equalisation Levy Statements
Equalisation Levy, applicable on specified digital transactions, requires filing of statements by the due date. For the financial year 2020–21, the statement filing deadline was extended from June 30, 2021, to July 31, 2021.
Similarly, the intimation of processing related to Equalisation Levy cases where due dates fell between March 20, 2020, and March 31, 2021, was revised from June 30, 2021, to September 30, 2021. These extensions are critical given the increasing role of digital transactions in the economy.
Relaxations Related to Registration and Approval Applications for Trusts and Institutions
Several trust and charitable institutions required registration or approval under sections 10(23C), 12AB, 35, and 80G to avail tax exemptions and benefits. Due to operational challenges, the government provided extended timelines for submitting registration, provisional registration, and intimation applications.
Revised Timeline for Registration and Approval
Originally due by June 30, 2020, these applications were extended first to June 30, 2021, and further revised to August 31, 2021. This final extension offered trusts and institutions time to complete registration formalities and maintain their tax-exempt status.
Importance for Charitable Institutions
Timely registration under these sections is essential for charitable trusts to continue benefiting from exemptions and for donors to claim deductions. The extensions help ensure continuity of operations and compliance amid challenges.
Investment-Linked Compliance Extensions
Investment-linked reliefs and statements have specific timelines that have also been adjusted.
Investments for Capital Gains Exemption (Sections 54 to 54GB)
Taxpayers claiming exemption on capital gains under sections 54 to 54GB, including investments in residential properties, bonds, and startups, had revised deadlines for investing or depositing amounts. For cases where the due date fell between April 1, 2021, and September 29, 2021, the revised deadline was set at September 30, 2021.
This extension is crucial for taxpayers planning investments to save capital gains tax, providing additional time to arrange funds and complete transactions.
Statement by Eligible Investment Funds (Form 3CEK)
Funds eligible for concessional taxation under section 9A(5) were required to file Form 3CEK for the financial year 2020–21. The original deadline was June 29, 2021, extended to July 31, 2021.
Accurate and timely submission of this statement is important to maintain the fund’s eligibility for tax benefits and ensure transparency.
Quarterly Foreign Remittance Statement Extension
Form 15CC, which reports foreign remittances, had its deadline for the quarter ending June 2021 extended from July 15, 2021, to July 31, 2021. This extension supports taxpayers and authorized dealers in complying with procedural requirements for foreign exchange transactions.
Finalization of Assessment and Reassessment Orders
Assessment and reassessment orders play a critical role in determining tax liabilities. The Income-tax Department had extended the timeline for issuing such orders.
Extension for Orders with Original Expiry on March 31, 2021
Where the extended date for assessments and reassessments was due to expire on March 31, 2021, the government granted a further extension until June 30, 2021.
Extended Dates for Orders Where Extended Dates Expired on March 31, 2021
In cases where assessment or reassessment orders were due without any extension, the original deadline of March 31, 2021, was extended to September 30, 2021. This extension allows the department more time to complete scrutiny without compromising taxpayer rights.
Impact on Filing of Quarterly TDS Statements and Certificates
Tax Deducted at Source (TDS) compliances are vital for proper credit of tax deducted to taxpayers and smooth tax administration.
Revised Timeline for Quarterly TDS Statements (Q4 FY 2020–21)
The due date for filing quarterly TDS statements for the fourth quarter of FY 2020–21 was originally May 31, 2021. This was extended to June 30, 2021, and subsequently revised to July 15, 2021.
Issuance of TDS Certificates (Form 16)
Employers and deductors are required to issue Form 16 certificates to employees. The original deadline was June 15, 2021, extended to July 15, 2021, and finally revised to July 31, 2021.
These extensions help employers and deductors finalize TDS details and ensure employees receive their certificates in time for filing returns.
Upload of Form 15G/15H Declarations
For the quarter ending June 2021, the deadline for submitting Form 15G/15H declarations to avoid TDS on interest income was extended from July 15, 2021, to August 31, 2021. This extension benefits senior citizens and other eligible persons by providing more time to submit declarations to banks and financial institutions.
Preparing for Compliance Beyond Revised Due Dates
With the final revised due dates approaching or passed, taxpayers should focus on completing all pending filings and submissions. Proactive compliance reduces risks of penalties, interest, and enforcement actions.
Tax professionals are advised to coordinate with their clients to ensure that all procedural and substantive requirements are met timely. This includes audit finalizations, return filings, penalty rectifications, and submission of required statements and forms.
Key Areas Affected by Extensions
- Imposition of penalties for late or non-compliance has been deferred with final deadlines set at September 30, 2021.
- Procedural compliances such as filing objections, withdrawal of settlement applications, and submission of equalisation levy statements have received extended timelines.
- Registration and approval applications for trusts and charitable institutions were extended till August 31, 2021.
- Investment-linked compliances including capital gains exemption investments and eligible investment fund statements have new due dates through September and July 2021.
- TDS filing, certificate issuance, and Form 15G/15H submission deadlines were also extended into mid-2021.
- Vivad se Vishwas dispute resolution scheme deadlines were revised, allowing more time for settlement.
- Aadhaar-PAN linking has a final extended deadline of September 30, 2021.
Conclusion
The revised due dates under the Income-tax Act have provided much-needed relief and flexibility to taxpayers, professionals, trusts, and institutions navigating their tax compliance obligations amid unprecedented challenges. By extending deadlines across a broad spectrum, including return filings, audit reports, penalty impositions, procedural compliances, and dispute resolution schemes, the authorities have ensured that taxpayers have sufficient time to meet their obligations without undue hardship.
These extensions emphasize the importance of staying updated with evolving timelines and using the available time effectively to avoid penalties, interest, and other complications. While the revised due dates offer additional breathing room, it remains critical for taxpayers to prioritize compliance and plan their tax affairs proactively.
Understanding these changes helps taxpayers safeguard their interests, maintain good standing with tax authorities, and minimize the risk of legal disputes. As the final deadlines approach or have passed, prompt action and meticulous attention to filing requirements, documentation, and payments will ensure smooth compliance and peace of mind.
In summary, the revisions reflect a balanced approach by the government, recognizing operational difficulties while maintaining the integrity and effectiveness of the tax administration system. Taxpayers and professionals are encouraged to leverage these extensions wisely and align their practices to meet the final timelines without delay.