An important point to note is – the financial year is not extended
No doubt that this pandemic has slowed down many vital processes. But, the government has clearly instructed that there would not be any extension in the financial year. The government has extended the date related to the Indian Stamp Act for certain amendments. These amendments shall be effective from July 1, 2020.
Economic Relief is a must in times of pandemic
COVID-19 has put a major setback to the global economy. People at all levels of society are facing adverse situations in one or the other way. This is why the government needs to bring about some changes in the taxation system. Some measures are taken by the government that could give relief to people are mentioned below:
Self-employed people or people having a business
People who are self-employed or own a business pay taxes in four parts throughout the year. These payments are termed as estimated tax payments. The extended date for these payments is set to July 15, 2021. Its original date was April 15, 2021. The extension for due dates June 17, September 16, and January 15 (2021) are yet to be decided.
Good news- last date for IT savings gets extended
You need not worry if you were not able to make income tax saving for the financial year 2019-20. Everyone is thriving the worse effects of the pandemic. But, you have a piece of good news, a tax benefit under Section 80C May. The government has allowed taxpayers to invest in PPF, NSC, ELSS, or any other tax-saving scheme by June 30, 2020. Apart from this, you are eligible to claim tax benefits for the financial year 2019-20. You can benefit from this scheme even if your investment is done between April 1, 2020, and June 30, 2020. People who have already made the tax-saving investment can invest till June 30 or later to avail tax benefits for 2020-21.
Extension of dates to avail a deduction on the home loan
This is for the new buyers of home loans. Under Section 80EEA of the Income-tax Act, new buyers have an extension until March 31, 2021. It is to apply for deduction in home loans. Earlier, for a property of 45 lakh, you could avail of a deduction of 1.5 lakh on home loan repayment interest. But now, this amount is changed to 2 lakh. This deduction can be availed for the financial year 2020-21. This is possible only if you have borrowed a home loan before March 31, 2021.
Belated return last date extended
For the financial year 2018-19, the last date to file ITR without fail was August 31, 2020. For the late filers, the last date was March 31, 2020, which is extended to November 30, 2020. However, the late payers with income above Rs 5 lakh have to pay a penalty of Rs 10,000.
There are certain extensions made in particular areas as a relief for people. People need to pay heed to them and must not consider it as liberty. This is for their welfare.