Income Tax Return deadline extension: Important things you need to know before ITR filing

New Delhi: The Income Tax Department has extended the deadline for filing IT returns for the financial year 2020-21 due to the second wave of the COVID-19 pandemic, providing a sigh of relief to individual taxpayers. The decision will also reduce the compliance burden from businesses facing turbulency in the ongoing environment. According to the Income Tax Rules, the last date for individual taxpayers who file ITR-1 or ITR 4 for the previous financial year (2020-21) ended March 31 is usually July 31 every year.  

However, individuals can now file tax returns for income earned in the financial year 2020-21 till September 30 instead of July 31. 

Similarly, for companies and firms whose accounts are required to be audited, the deadline is usually October 31. But the Central Board of Direct Taxes (CBDT) has extended the deadline for filing returns for companies to November 30, 2021.

Meanwhile, the government has also extended the deadlines for filing belated ITR with a penalty. 

The decision is helpful for taxpayers who fail to file their Income Tax return even after the September 30 deadline, but with a penalty. The last date for filing Belated ITR or Revised ITR now is 31st January 2022. Also Read: Unlock 5.0: Park, gym and bar will open in Delhi from tomorrow

According to a circular by the CBDT, the deadline for submission of Form 16 has been extended to July 15, 2021. The previous last date for submitting Form 16 by the employers was June 15. For those uninitiated, Form 16 is given to employees by their employers.  Also Read: Twitter interim grievance officer for India quits amid IT Rules row