Why the department did not extend the return filing deadlines further

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The last date of ITR filing for FY 2020-21 was 10th January 2021 and now, the government is not going to extend the deadline. Still, if you have not filed your tax return, you can file your tax returns after paying a penalty.

10th January was the 3rd extension for the particular financial year, did you know why CBDT did not extend the ITR Filing Deadlines for AY 2020-21.

Why CBDT did not extend the ITR Filing Deadlines for AY 2020-21

As per the CBDT return filing data, till the extended due date, the number of returns filed this year has already exceeds that of last year.

  • 10 January 2021- 5.95 Crore Returns (AY 2020-21)
  • 31 August 2019- 5.61 Crore Returns (AY 2019-20)

As per the CBDT source, ” any further extension would adversely affect the return filing discipline and shall also cause injustice to those who have taken pains to file the return before the due date.”

The department also argued that a 4th-time extension would also postpone the collection of revenue and its result in hampering the efforts of the government in providing relief to the poor in the pandemic time.

Other Countries tax return deadlines

If we take the example of other countries, they also have not extended the deadline beyond January 2021.

Also Read- 10 Important Deadlines that you must know for the 1st Quarter of 2021

For Instance, the UK department did not give an extension beyond its original income tax returns deadline of 10th January 2021. IN the US, there was only a one-time extension which was 15th October 2020 from its original due date of 15th April 2020.

CBDT also cited the example of other countries such as Australia and South Africa where any further extension was not given by their governments to their taxpayers.

It also argued that sufficient time was already given to all the taxpayers for filing their ITR and a large number of taxpayers have already done so.

The petition filed to Gujrat High Court

A petition was filed by the All India Gujarat Federation of Tax Consultants in the Gujarat High Court.

In response to the petition, CBDT said that it had been proactively giving relaxation on the ITR filing deadline and any more extension was not feasible.

Apart from the above if you missed the due date and want to file your return, you can still file your return till 31st March 2021 by paying a late fee.

Also Read- Interest and Penalty For Late Filing of ITR for AY 2020-21

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)


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