Saturday, 2 January 2021

CBDT issues notifications to formalize extensions granted recently for various compliance under Income Tax Laws and VSV Act, 2020

 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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