There are other requirements in case of corporates, such as tax audit, transfer pricing filings
Income tax department is sending multiple reminders to the taxpayers through emails and SMSs as well as social media posts to file income tax return (ITR) for FY2019-20. Generally, the last date for filing a tax return is 31 July every year. However, due to the pandemic the last date has been extended multiple times to 31 December 2020 this year.
Therefore, only a few days are left. As per a tweet by the tax department, 3.90 crore income tax returns for AY 2020-21 have already been filed till 23rd of December, 2020. With these numbers the tax department is reminding people to file their ITR and not wait for the last minute.
However, there are many people who are appealing on social media for extension of the tax filing deadline. Don’t delay your tax filing without any reason. Don’t wait for the last minute for the deadline to be extended.
Here’s what experts are saying about extension of tax filing deadline.
Tarun Kumar, Delhi-based chartered accountant
There are chances that the deadline may be extended. However, taxpayers shouldn’t wait until the last minute to file their income tax return. The tax department is processing the ITRs in record time this year. We have seen people getting refunds in a week’s time.
Something we have not seen in the past. However, there are a few cases where people are facing issues in filing their tax returns due to the person being quarantined as he or she or the family member has been declared Covid-positive. There are a few areas where night curfew is being imposed restricting mobility to certain extent. Maybe the tax department should provide a timely extension to provide relief in such cases.
Ameet Patel, partner at Manohar Chowdhry & Associates
If there is an extension it is most likely to be announced only in the last 2-3 days. However, I personally feel that for salaried people and non business class taxpayers, enough time has already been given by way of extension of 5 months and therefore, the chances of further extension are less for such tax payera. There may be a few cases such as senior citizens who might be facing problems in filing their tax returns.
However, for companies there is a need for extension of the deadline as the last date for conducting annual general meetings (AGMs) has been extended by 3 months till 30th December. So, it will be difficult to file tax audit reports in cases where the accounts are being prepared since the same are approved in AGMs.
In non-company cases where tax audits are required, people are facing issues due to mobility restrictions. For example, in Mumbai, as the local trains are not running, people are facing issues in travelling to offices for data collection. Similarly, in some places, there are night curfews. In such cases, an extension is certainly required.
Shailesh Kumar, Partner, Nangia & Co LLP
I personally think there is unlikely to be an extension as the dates have already been extended from July to December. However, I think it is likely to be extended in case of corporates as the extension has only been provided for three months from September to December. There are other requirements in case of corporates, such as tax audit, transfer pricing filings. No such requirement is there in case of individuals.