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Due date Extension put Taxpayers under Duckworth Lewis Situation

CA Umesh Sharma 
on 06 January 2021

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Arjun (Fictional Character): Krishna, the tax department has extended due dates for compliances under Income tax & GST. But a very short span of time has been provided therein.

Krishna (Fictional Character): Arjuna, after the pleads of many taxpayers & tax associations, the tax departments extended the due dates for compliances under Income Tax & GST. However, this is the third time that the Income-tax department has extended the due date for Income tax returns & audits. Plus it is the shortest extension provided in history over time. We can relate the taxpayer's situation to the "Duckworth Lewis" rule, in which due to rain or other interruptions, more runs have to be made in fewer balls.

Due date Extension put Taxpayers under Duckworth Lewis Situation

Arjun (Fictional Character): Krishna, how much extension has the Income-tax department for its taxpayers?

Krishna (Fictional Character): Arjuna, from the original deadline, to file Income Tax returns on 31st July 2020, which was then extended to 31st December 2020, and now further to 10th January 2020 for individual ITR's (Non-audit cases) & 15th January for ITR's (audit cases). Taxpayers were expecting an extension at least by a month i.e. 31st January, however, only 10-15 days have been granted by the Income-tax department. So, to comply with the due-dates, more returns & audits have to be worked upon & uploaded in fewer days.

Arjun (Fictional Character): Krishna, how much extension has the GST Department has provided for GST compliances?

Krishna (Fictional Character): Arjuna, the due date for GSTR-9 & 9C for the FY 2019-20 has been extended to 28th February 2021, which earlier was 31st December 2020. Where the due date for GSTR-9 & 9C for FY 2018-19 is 31st December, it was nearly impossible to complete GSTR-9 & 9C for FY 2019-20 by 31st December 2020. The room for 2019-20 is yet to be unlocked yet, only after which, taxpayers & audit professionals will come to know the quantum of clutter, & how to resolve it.

Arjun (Fictional Character): Krishna, are there any other due date extensions?

 

Krishna (Fictional Character): Arjuna, the option to avail of the benefit under the "Vivad se Vishwas" scheme has also been extended till 31st January 2021. This is the last date for making a declaration under the scheme, as well the last date for passing orders which was 30th January 2021, is extended to 31st January 2021.

Arjun (Fictional Character): Krishna, what should the taxpayer learn to form this?

Krishna (Fictional Character): Arjuna, the "Duckworth Lewis" rule has come into pictures for taxpayers, however, they must not lose the spirit by the short-extension & buckle up to comply with the due dates in time. That's all in their hands for now. The true spirit here lies in managing the workload with scarce resources i.e. the no. of days left, & win this match between Tax departments & taxpayers.

 

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