Income Tax

Checklist of Income Tax Tasks to be finished before 31 July 2021

Due to the Covid-19 pandemic, the government has extended different deadlines relating to various tax compliances. The government has sought to ease the compliance burden of taxpayers by providing certain reliefs and extensions. In this article, we have provided certain essential checklist of income tax that you must complete before the end of this month (July).

Checklist of Income Tax Tasks

• Furnish the statement of tax deduction for the last quarter of the FY 2020-21

The statement of tax deduction for the last quarter of FY 2020-21, which was required to be furnished on or prior to May 31, 2021, under Rule 31A of the Income Tax Rules, 1962, extended to 30^th June vide circular number 9 of 2021, can be furnished on or before July 15, 2021.

• Furnish certificate of tax deducted at source in Form 16

The certificate of tax deducted at source (TDS) in Form 16 has to be furnished to the employee by June 15, 2021, under Rule 31 of the Rules, extended to July 15, 2021, vide Circular number 9 of 2021, can be furnished on or before July 31, 2021.

• Furnish the Statement of the Income paid or credited by the investment fund to its unit holder in form 64D

The Statement of the Income paid or credited by the investment fund to its unitholder in form 64D for the previous year 2020-21, which had to be furnished on or prior to June 15 2021, under Rule 12C of the Rules, extended to June 30, 2021, vide circular number 9 of 2021, can be furnished on prior to 15^th July 2021.

• Furnish the Statement of the Income paid or credited by the investment fund to its unit holder in form 64C

The Statement of Income paid/credited by the investment fund to its unit holder in Form Number 64C for the Previous Year 2020-21, which had to be furnished on or before June 30th 2021 under Rule 12C of the Rules, extended to July 15th 2021 vide Circular Number 9 of 2021, can be furnished on or before July 31st 2021.

• Furnish quarterly statement in Form 15CC

The Quarterly Statement in the Form Number 15CC to be furnished by an authorized dealer relating to remittances made for quarter ending on June 30th 2021, which had to be furnished on or before July 15th 2021 under Rule 37 BB of the Income Tax Rules^[1], can be furnished on or before July 31st 2021.

• File equalization levy statement in Form 1

The Equalization Levy Statement in Form Number 1 for the Financial Year 2020-21, which had to be filed on or before June 30th 2021, can be furnished on or prior to July 31st 2021.

• Furnish annual statement under sub section (5) of section 9A of the Income Tax Act

The annual statement which had to be furnished under sub-section (5) of section 9A of the Income Tax Act by the eligible investment fund in Form number 3 CEK for the FY 2020-21, which had to be filed on or prior to June 29, 2021, can be furnished on or before July 31, 2021.

• Exercise option of withdrawing pending application

Exercising the option to withdraw pending application which is filed before the erstwhile IT Settlement Commission under sub-section (1) of Section 245M of Income Tax Act in form number 34BB, required to be exercised on or prior to June 27, 2021, can be exercised on or before July 31, 2021. 

What are the benefits of completing checklist of income tax compliances on time?

Completing your tax compliances before the due date is essential and beneficial also. It can benefit you in various ways. In this section, we have discussed the benefits of completing tax compliances within the due time:

• Avoid penalty and prosecution

The income tax officer or department can initiate legal proceedings if you don’t fulfil all your tax compliances on time. Therefore by completing your tax compliances, you can avoid paying hefty fines.

• Easy loan approval

Filing ITR or meeting all your tax compliances can help individuals to apply for a loan easily and get it granted seamlessly.

• Claim tax refund

In case you have a refund due from the income tax department, then filing the ITR on time can help you obtain the tax refund.

• Carry forward losses

When you file ITR within the due date, then it will enable you to carry forward losses to subsequent years. It can be used to set off against income in future.

Conclusion

The checklist of income tax tasks mentioned above should be completed within the due date. It will ensure that you don’t end up paying hefty fines and penalties. Always look to fulfil the tax compliances before hand, and in case of any query or confusion, taking the help of a professional is a must.

Read our article:Tax reliefs under IT Act: Extension of various deadlines for tax compliances