The month of September is almost over. In light of the coronavirus pandemic, the government has extended certain deadlines to provide relief to individual taxpayers. Here are three such deadlines that end on 30 September 2020:
1. Claiming LTCG exemption
In order to save hefty taxes to be paid on long-term capital gains (LTCG), individuals are required to make certain specified investments. For example, in the case of capital gains from the sale of a house, the taxpayer can claim exemption by either buying a new house or by investing in specified bonds.
The government has extended the last date for completing the process of making such investments to 30 September. In a regular year, the deadline for such claims expires between 20 March to 29 June.
2. Belated ITR filing for FY 2018-19
The deadline to file belated income tax returns (ITR) for the financial year 2018-19 has been extended to 30 September from 31 March. Individuals filing belated returns are also required to pay specified late submission fees.
After the deadline, individuals will not be able to file ITR for FY 2018-19, unless specified via a notice by the Income Tax department.
3. Verify Old ITRs
The Central Board of Direct Taxes (CBDT) allowed one-time relaxation for verification of income tax-returns for specified years. Individuals whose income tax returns are not verified for assessment years (AY) 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20, can do so by 30 September.
The circular issued by CBDT in this regard said that once the ITR is verified by the individual, the department will complete the process of processing returns by 31 December 2020.