CBDT has notified Income tax returns for FY 2019-20 (AY 2020-21) wherein a separate column has been added where information on amounts invested in eligible instruments from 1 April 2020 to 30 June 2020 is to be included.
The CBDT/Finance Ministry had extended the deadline for tax savings instruments on account of Covid to 30 June 2020.
The type of investments permitted under the extension period are:- Section 80C (LIC, PPF, Equity Linked Savings Scheme, NSC etc.), – 80D (Mediclaim), 80G – (Donations)
i.e. any investments made in the above can be claimed by taxpayer in his tax return for financial year 2020. As TDS would have already been deducted by employer, the deduction for investments under extended period would need to be updated and claimed using the new tax returns.
What should you do?
Tax payers are advised to calculate their total tax liability as soon as possible. If you have tax payable or if limits under 80 C are not fully utilised, then you can invest necessary amounts as per the permission given by the CBDT by making investments till 30 June 2020.
How RupeeTax can help?
Over the next two weeks (15 June 20 to 30 June 20), RupeeTax is offering FREE tax planning services to help tax payers to decide whether they would like to take benefit of the extended time period upto 30 June 2020. All you need to do is register on our website and upload your Form 16 if available or simply your payslips and tax declarations if Form 16 is not available.
Our team will get in touch with you to optimize your taxes.
Note: that the extended due date for filing the income tax returns is 30 November 2020. You can file returns earlier as well so that:
1. process is complete2. you get refund sooner if you have a refund3. if you have tax payable then your interest liability will be lower if you file return and pay taxes in advance of 30 November 2019