Covid-19: Fin Min Extends Date For Making Tax Saving Investments to June 30
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In a major relief to small taxpayers, the finance ministry on Tuesday announced to extend the date for making tax-saving investments for the financial year 2019-20 to June 30, 2020.
“The date for making various investment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20,” the official statement said.
The decision has been taken keeping in view the challenges taxpayers must be facing in meeting the compliance requirements under the countrywide lockdown announced on 23 March. The last date for making tax-saving investments under the various sections of the Income Tax Act is 31 March or last date of a financial year.
Earlier on Tuesday, the ministry clarified that it has not pushed the beginning of financial year from April 1 to July 1, as is being claimed by some social media posts.
In the similar vein, the date for making investment for claiming roll over benefit or deduction in respect of capital gains under sections 54 to 54GB has also been extended to 30 June 2020. “The investment/ construction/ purchase made up to 30 June 2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20,” said the statement.
These new features have been added to the various measures related to compliance and regulation that were announced by finance minister Nirmala Sitharaman on 24 March. Among other measures, the last date of filing of original as well as revised income-tax returns for the financial year 2018-19 and linking of Aadhaar-PAN has also been extended to June 30.
Under the Vivaad se Vishwas scheme, taxpayers will now be able to pay their dues till June 30 without having to pay the extra 10 per cent interest on the principal amount. This amnesty scheme was launched by the government in the Budget 2020, wherein the taxpayer only has to pay the disputed amount and gets a waiver of interest and penalty.
Also, interest rate for delayed deposit of tax deducted at source (TDS) has been halved to 9 per cent from the existing 18 per cent.
“In order to give effect to the announcements made by the Union Finance Minister on 24 March 2020, regarding several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the government has brought in an Ordinance on 31 March 2020, which provides for extension of various time limits under the Taxation and Benami Acts,” the statement read.