CBDT extends due date for filing FY21 Income Tax Returns till Dec 31; check details here

On Thursday, the Central Board of Direct Taxes (CBDT) again extended the deadline to file Income Tax Returns for the assessment year 2021-22 till December 31. Earlier last month, the CBDT had extended the income tax return (ITR) filing deadline for FY 2020-21 till September 30, 2021. The original deadline for the same was July 31, 2021. 

The direction by the CBDT is applicable for the tax settlement applications that were to be filed up to January 31, 2021. An official statement of the CBDT read, "The taxpayers will also have the option to withdraw their applications within the specified time and intimate the assessing officer regarding any such withdrawal." The CBDT had additionally constituted the Interim Board for settlement to dispose of the pending settlement applications, which assisted in assessing the situation and went ahead with an extended deadline till December 31.

CBDT Guidelines

• The CBDT took the decision in order to provide relief to the taxpayers who were eligible to file the settlement application as of January 31. But were unable to do so because of the cessation of the ITSC vide Finance Act, 2021. Therefore these settlements will have the option to file their settlements before the newly constituted Interim Board by December 31.
• However, the taxpayers who have already filed their respective tax settlement applications on or after February 1, 2021, in line with the directions of the high courts in several states shall not be required to do so again.
• Moreover, these applicants are also not eligible to avail the option of withdrawing their settlement applications as per provisions of Section 245M of the ITSC vide Finance Act.
• Thus, the taxpayers who can avail the benefits of the extended deadline need to fulfill these conditions – that they were eligible to file the tax settlement application before January 31, 2021, and that their relevant assessment proceedings were still pending as of the date of filing the application for settlement.
• Notably, the Finance Act, 2021, amended the provisions of the Income Tax Act, 1961, to provide that the Income Tax Settlement Commission (ITSC) shall cease to operate with effect from February 1, 2021

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