Recently, the Central Board of Direct Taxes (CBDT) had issued a press release dated 30 December 2020[
(Press Release) addressing various concerns of taxpayers and stakeholders in relation to the compliances under the Income Tax Laws (ITL). Amongst others, the Press Release includes extension in due dates for filing tax returns, tax audit report, transfer pricing report etc. for tax year 2019-2020 for various taxpayers. Additionally, the sunset date for filing declaration under The Direct Tax Vivad Se Vishwas Act, 2020 (VSV) has been extended to 31 January 2021.
The CBDT
has now issued notification nos. 92 and 93 dated 31 December 2020 (CBDT
Notifications) with a view to formalize the various announcements made in the
Press Release. Please refer our alert dated 31 December 2020 titled as “CBDT
grants further extension of due date for filing tax returns and audit reports
for tax year 2019-20 and for filing declaration under VSV Act, 2020” for
summary of the announcements made vide the Press Release.
The
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act
2020[ provides that completion of any proceedings or passing
of any order or issuance of any notice/intimation/ notification/ sanction/
approval or such other action by any authority or commission or tribunal under
a specified act[4] which is falling due between 20 March 2020
to 31 December 2020 (disruption period) can be done on or before 31 March 2021.
Now, the CBDT Notifications extend the disruption period to 30 March 2021. The
Notifications also state that the relevant compliances can be done by tax
authority/ commission/tribunal under the specified acts on or before 31 March
2021. However, this general extension is not applicable to tax authority which
is required to pass transfer pricing orders under the ITL. The disruption
period for passing transfer pricing orders is extended only to 30 January 2021
and the said compliance needs to be done on or before 31 January
2021.
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