In order to provide relief to taxpayers, the government on March 24, 2020 has made an announcement regarding the extension of due date for income tax returns for FY 2018-19 from 31st March 2020 to 30th June 2020. Now, the taxpayers have time until June 30, 2020 to complete their tax-saving exercise.
The finance minister, Nirmala Sitharaman, at a press release said , “Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for rollover benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”
As per this announcement, it seems that the timeline for tax-saving investment for FY 2019-20 has been extended till June 30, 2020. However, there is still confusion among taxpayers, as to how, or whether, they can make investments in tax saving schemes like Public Provident Fund (PPF), NPS, National Savings Certificates (NSC) to save tax till June 30, 2020.
Interpreting the press release and according to chartered accountants, this means that individuals can complete their tax-saving exercise for the financial year 2019-20 by June 30, 2020. However, experts are of the view that some clear guidelines from the government in this regard are required.