March 31, 2020 2:15:50 pm
The central government on Monday clarified that it has not extended the current financial year 2019-20 which is set to end today March 31. The Ministry of Finance has issued a clarification after some reports claimed that the fiscal year was going to get extended.
Here are the clarifications on Income Tax related issues:
No extension of the financial year
The financial year 2019-20 has not been extended till June 30 and only the date for some compliances has been extended by three months.
The Income Tax Department has also tweeted a press note by the finance ministry regarding the same on Monday.
— Income Tax India (@IncomeTaxIndia) March 30, 2020
Returns for financial year 2018-19 can be filed till June end
All the late tax returns or revised tax returns for the financial year 2018-19, which was from April 2018 up to March 2019, can be filed till June 30.
FY20 income tax to be calculated till March 31
During the ongoing financial year 2019-20 which is set to end today (March 31), the income is taxable only up to today and not up to June 30.
The income is taxed only during the financial year which is considered till March 31.
Deductions can be claimed by investing till June 30
All the deductions under section 80C, 80D etc. can be claimed by individuals by investing till the end of June. All new life insurance policies, medical insurance policies, Public Provident Funds (PPF), National Pension Schemes (NPS) which are purchased till June 30 will be eligible for deduction in the fiscal year 2019-20.
This apart, the premium of existing life insurance policies, medical insurance, PPF, NPS that are due up to March 31 can be claimed in the tax deduction of the fiscal year 2019-20, even if they are paid till June 30.
Housing loan interests
Coming to housing loans, the loan interest of an individual is eligible for deduction on an accrual basis, therefore the interest which is accrued up to March 31 is going to be eligible as deductions for the fiscal year 2019-20. But, instalments that are due up to March 31 shall be claimed as deductions even if they get paid by the end of June.
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