Associations of Chartered Accountants have written to Finance Minister Nirmala Sitharaman seeking an extension in the deadline for filing income tax returns as well as other compliances due to the continued lockdown in a number of States and difficulties in working from home.
“It is recommended that the due date for filing of returns for all the taxpayers for Assessment Year 2020-21 be extended to March 31, 2021 and the due date for filing the tax audit report also be extended to February 28, 2021,” they have written in their representation, adding that the timeline for filing all the reports and certificates under the Act which fall due along with or in connection with the ITR filing due dates may also be extended to March 31, 2021.
“This will also mean taxpayers availing moratorium will get an extended time for payment of interest and claiming the deduction under section 43B of the Act in Assessment Year 2020-21,” they further said.
The government had earlier extended the the deadline for filing income tax returns from July 31 to November 30.
The representation has been sent by Bombay Chartered Accountants’ Society, Chartered Accountants Association, Ahmedabad, Chartered Accountants Association, Surat, Karnataka State Chartered Accountants Association and Lucknow Chartered Accountants Society.
Lockdowns, curbs
The associations have pointed out that many States are still under lockdown and there are restrictions on the number of people who can come to office to work.
“Majority of the CA firms who carry out audits are small and medium sized firms having limited resources to work remotely and work from home,” they have further said.
The letter also points out that the return filing utilities have been released recently in some cases while for others, they have not yet been released.
Meanwhile, the associations have also sought an extension in the due date for filing Transfer Pricing audit report and returns of these tax payers as well to early next year.
While noting that ₹1,01,308 crore refunds from April 1 to September 8, 2020 have been issued by the Income-Tax Department, the letter has also called for further steps to ensure quick release of refunds.
“When there are reliefs granted by ITAT or High Court and no further appeal is filed or relief is granted by Supreme Court, the order giving effect are not passed by AOs and refunds are pending because of that,” they have called for faster release of the funds.