As the last date for filing Income Tax Returns (ITR) comes closer, the Income-Tax department seems to be under pressure to extend the deadline. The last date for filing ITR for this financial year is July 31. The reason for the supposed extension is the problems faced by people due to the change in the format of filing tax returns and the tax deducted at the source (TDS) certificates issued by employers.
Also, there could be a delay in the issuance of Form-16 to employees as the last date to file of TDS returns for the employers has been extended by the Central Board of Direct Taxes (CBDT) from June 30 to July 10.
Generally, an extension of a few days is taken into consideration in case if the public faces any problems in the filing of the tax returns, and in cases of natural calamity. The ITR deadline was extended last year too as people faced problems while filing their returns. The deadline to file ITR last year was August 31.
As per the proposal in Union budget FY20, the return filing has been made compulsory for all who are in the basic exemption limit of Rs 2.5 lakh annual income if they get into specified high-value transactions like spending on foreign travel. The linking of Aadhaar number with the PAN (Permanent Account Number) has also been made mandatory for filing of an ITR.
Those proposals will take effect after Finance Bill, 2019 is passed by Parliament and is signed into law.