New deadline for Income tax return, know other details about new ITR portal

The income tax (I-T) department has extended the I-T return filing deadline for 2020-21 because of the ongoing COVID-19 pandemic. This will not just ease pressure on individual taxpayers, but will also reduce the compliance burden for businesses struggling in the current environment.

 As per the income tax law, individual taxpayers filing ITR-1 or 4 are required to file their return for the previous financial year (2020-21), which ended March 2021, by 31 July 2021. The deadline for companies and firms whose accounts are to be audited is 31 October.

However, now these dates have been extended for the convenience of the taxpayers.

New deadlines

Individuals can now file their tax returns for income earned during the financial year 2020-21 by September 30. The Central Board of Direct Taxes (CBDT) has also extended the ITR filing deadline for companies to November 30.

New deadline for revised returns

An assessee who does not submit a return of income within the deadline is allowed to file a belated return but with a penalty. For filing a belated or revised return of income, the due date is now January 31, 2022.

Deadline for issuing Form 16

In a circular, the Central Board of Direct Taxes (CBDT) eased by a month till July 15, 2021, the deadline for issuing Form 16 by employers to employees.

New tax regime

From 2020-21, the government has given taxpayers the option to choose a new tax regime under section 115BAC of the I-T Act.

Under the new tax regime, the annual income up to Rs 2.5 lakh is exempt from tax.

Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay a 5% tax.

Income between Rs 5 and 7.5 lakh will be taxed at 10% and Rs 7.5 and 10 lakh at 15%.

Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20%.

Those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25%.

According to the new tax regime income above Rs 15 lakh will be taxed at 30%.