This is the biggest confusion in the minds of the taxpayers. The government has announced that taxpayers have time until June 30, 2020 to complete their tax-saving exercise for FY2019-20. The earlier deadline was March 31, 2020.
However, the government has clarified that this does not mean that the financial year has been extended.
According to chartered accountants, this means that individuals can complete their tax-saving exercise for financial the year 2019-20 by June 30, 2020
Following points clarify some of the issues:
1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.
2) Belated returns or revised returns for the FY 2018-19 can be filed till 30th June.
3) In the FY 2019-20, Income is taxable till 31st March only and not up to 30th June, i.e. for taxability of income, the financial year is considered till 31st March only.
4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.
5) New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.
6) Payment of Premium of old policies of LIC, Mediclaim, PPF, NPS, etc. due up to 31st March can be claimed as Deduction even if paid till 30th June.
7) Housing loan interest is eligible for deduction on an accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However, Installments due up to 31st March can be claimed as deduction ever if paid till 30th June.
8) The government has announced that taxpayers have time until June 30, 2020, to complete their tax-saving exercise for FY2019-20. The earlier deadline was March 31, 2020. However, the government has clarified that this does not mean that the financial year has been extended.