Confusing Year End - March VS June 2020
This is the biggest confusion in the minds of the taxpayers. Following points clarifies some of the issues:
1) Is the financial year changed to June 2020 closing?
FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances. Only the date of compliance which was required by 31st March 2020 either by the taxpayers or by the tax authorities has been deferred till 30th June 2020.
2) Whether belated returns or revised returns of FY 2018-19 can be filed now till 30.06.2020?
Yes, all taxpayers who have not filed the return of income of FY 2018-19 can file or revise the return till 30th June 2020. In the normal course, belated income tax returns cannot be filed after the end of the relevant assessment year. However, due to lockdown till 14th April, Government is allowing the filing of return of FY 2018-19 (AY 2020-21) till 30th June. Readers may note that earlier there was a period of 2 years for filing or revising the return which is reduced to 1 year earlier.
3) Whether the person who has incurred loss in the month of April or May will be eligible for setting off while filing the income tax return for the FY 2019-20?
In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e. for taxability of income financial year is considered till 31st March only.
4) Whether deduction u/s 80C can be claimed by making investment in PPF/LIC etc till 30.06.2020?
Yes, the persons who have not made investment in PPF/LIC etc which are eligible for deduction u/s 80C can do it now. Even the person can invests in :
a) National Pension Scheme (NPS) for claiming an additional deduction of Rs. 50,000/- U/s 80CCD(1B). It is over an above deduction of Rs. 1.50 Lakh u/s 80C.
b) Mediclaim payment for claiming deduction u/s 80D.
5) Whether New LIC, Mediclain,PPF,NPS Account opened after 31ST March 2020 but before 30th June 2020 will be eligible for deduction
New LIC, mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.
6) Whether the PPF / NPS Account opened after 31ST March 2020 but before 30th June 2020 will be eligible for deduction under chapter VI-A?
Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June.
7) Whether housing loan interest till 30th June 2020 will be eligible for deduction against income for the FY 2019-20?
Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Installments due upto 31st March can be claimed as deduction ever if paid till 30th June.