CBDT Notifies Extension of Limitation Dates under the Income Tax Act 1961

The Central Board of Direct Taxes or CBDT, by way of the powers provided under section 3 (1) of the Taxation and Other Laws (Relaxations & Amendment of Certain Provisions) Act 2020, has passed the Notification No 10/ 2021, issued on 27.01.2021 to notify Extension of Limitation Dates under the Income Tax Act 1961.

Further, the same notification aims to modify the provisions of Notification No 93/ 2020, issued on 31.12.2020.

In this learning blog, we will cover the concept and extension of limitation dates under the Income Tax Act 1961.

Concept of Income Tax

The term Income Tax denotes a tax that is imposed by the government on the businesses and individuals who are earning above the exempted limit. The same is levied on the amount earned as income by an assessee’s in the previous financial year. The word Financial Year means the year which starts on the 1^st April of each year and ends on 31^st March of the next year.

Further, the term income includes the following:

• Dividend Sources;
• Salaries;
• Interests;
• Royalties;
• Rents;
• Product Sales;
• Gambling Winnings, etc.;

Also, the document used by the assessee to file his/ her income tax for the previous financial year is known as Income Tax Return. There are seven different types of ITRs applicable under the provisions of the Income Tax Act 1961.

Also, Read: CBDT Notifies Extension of Deadline for the Vivad Se Vishwas Scheme

Situations under which CBDT notifies Extension of Limitation Dates

The provisions under which CBDT notifies Extension of Limitation Dates are as follows:

Income Tax Act 1961

Wherein the mentioned Act is the Income Tax Act 1961, and the completion of any action, as specified under section 3 (1) (a) of the said act, relates to the passing of any order as follows:

Imposition of Penalty under Chapter XXI

The extended limitation dates can be summarised as:

• 29.06.2021 shall be the end date for the period prescribed under the Income Tax Act, for the completion of such action;
• 30.06.2021 shall be the end date for the period prescribed for the completion of such action;

Assessment and Reassessment under section 153 or 153B

The extended limitation dates can be summarised as:

• Earlier, the date of completion was 31.03.2021, however, the same has been extended till 30.04.2021;
• If a case is not covered under (a), and expires on 31.03.20201, then, in that case, the said limit has been extended till 30.06.2021;

Prohibition of Benami Property Transaction Act 1988

Wherein the mentioned Act is the Prohibition of Benami Property Transaction Act 1988 and the completion of any action, as specified to in section 3 (1) (a) of the said act, deals with the issue of notice under subsection (1) or the passing of any order under subsection (3) of section 26 are as follows:

• 30.06.2021 shall be the end date for the period prescribed under the Prohibition of Benami Property Transaction Act, for the completion of such action;
•  30.09.2021 shall be the end date for the period prescribed for the completion of such action;

Conclusion

In a nutshell, CBDT, by way of the powers provided, has amended the provisions of the Notification No 93/ 2020, issued on 31.12.2020. Further, the same was done through Notification No 10/ 2021, on 27.01.2021, which deals with the Extension of Limitation Dates under the Income Tax Act 1961.

Official Notification Passed by CBDT

Also, Read: CBDT Clarifies Provisions Regarding TDS Deduction from Salaries for F.Y. 2020-21