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Key Implications of the Taxation Bill 2020 on ITR Filing

ITR Filing

Every individual would have to file tax returns. If the individual has to file tax returns then there would be a deadline for filing the respective tax returns. The Government has brought out the Taxation Bill 2020 to introduce key changes in ITR Filing.

What are the essential changes of this bill on ITR filing?

The Government has brought out The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020.

Some of the provisions of this bill are as follows:

  • This bill changes the due date of ITR Filing for returns. The ITR filing for the Assessment Year 2020-21 would be 30 November 2020.
  • This bill also changes the last date for filing ITR for Assessment Year 2019-20. The date is 30 September 2020.
  • Transfer pricing and another Audit report the last date is 31 October 2020.
  • Linking PAN to Aadhaar Card[1] date has also been extended as a result of this amendment to 31 March 2021

Which bill does the above the law replace?

The above bill replaces the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 was brought out by the government at the beginning of 2020. This bill was brought out by the government to extend deadlines for filing ITR return. These dates were extended as the effect of Covid-19 and lockdown affected the entire country.

The following dates were brought as relief of this ordinance:

  • Tax Savings Investments– Due date was changed to 31 July 2020.
  • Self-Assessment Tax Payment- Due date 31 July 2020 for a tax liability of more than Rs 1 Lakh and 30 November in case the tax liability is less than Rs 1 Lakh.

Faceless Assessment- Was it a part of the Update?

Faceless Assessment was a part of the Transparency Tax Update which the government brought out in August 2020. As a part of this amendment, the government wanted to increase transparency, governance, and accountability of tax paid by individuals and companies.

The faceless assessment scheme would only be operational from 25 September 2020.

Conclusion- ITR Filing

The Government brought out the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020. This bill replaced the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020. Some of the key introductions through this bill would include extending the due date for ITR filing for individuals to 30 November 2020.


Varun Hariharan

Varun Hariharan has completed the Legal Practice Course from BPP Law School, Manchester. He has a Masters in Commercial and Corporate Law from the Queen Mary University of London and LLB Honours from Bangor University, UK. He specialises in law related to corporate, artificial intelligence and technology law.

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