Circular No. 17/2021 dated September 09, 2021

In view of the difficulties faced by the taxpayers and other stakeholders in electronic filing of income tax returns and various reports under the Income-Tax Act, 1961 (‘the Act’), the Central Board of Direct Taxes (CBDT) has further extended the time limits of certain compliances under the Act, vide Circular No. 17/2021 dated September 09, 2021.

The key highlights of the Circular have been tabulated hereunder:

Notes:

1. For taxpayers having small self-assessment tax liability up to INR 100 Thousand, the date for payment of self-assessment tax shall also stand extended to recently extended due dates of filing return of income (i.e. December 31, 2021/February 15, 2022/February 28, 2022, as the case maybe). It has been clarified that there is no such extension for the purpose of payment of interest under Section 234A on self-assessment tax in case of taxpayers with a tax liability higher than INR 100 Thousand, where return of income is filed beyond the original date of filing the return as per the Income-tax Act. In such case, interest under section 234A shall be leviable on the self-assessment tax amount (i.e. total tax liability reduced by withholding tax, advance tax other permissible reductions) from the date immediately following the original due date till the date of furnishing of the return, regardless of the fact that self-assessment tax was paid within the original due dates for filing income tax return.

2. However, in case of a resident individual who (a) does not have business income and (b) is of the age of sixty years or more at any time during the year, any self-assessment tax paid till the original due date shall be treated as ‘advance tax’ paid by the person, for the purpose of computing the above interest. As such, as long as due self-assessment tax is paid by such resident individuals within the original due date for filing the income tax return, interest under Section 234A shall not be leviable even if the return is filed after the original due date but on or before the extended due date.

3. In the aforesaid Circular, it has not been specifically mentioned whether there is any extension for filing Tax Audit Report (Form 3CD) in case of persons who are required to file an Accountant’s Report in Form 3CEB. The due date for filing a Tax Audit Report in case of such persons for the AY 2021-22 is one month prior to the due date for furnishing the return of income i.e. October 31, 2021 (as per the Act). As the extended due date for filing the return of income of such entities is February 28, 2022, the due date for filing Tax Audit Report may be considered as extended to January 31, 2022.

Considering the difficulties faced in view of the COVID-19 Pandemic, the authorities under the Companies Act, 2013 (“the Act”), pursuant to the 3rd proviso of Section 96(1) of the Act, have extended the time for holding of AGM for the FY ended March 31, 2021, by a period of TWO MONTHS, without the need for submission of application for such extension.

Notes

1. The above Extension of Time, however, shall not be applicable to the first Annual General Meeting;

2. It will, however, cover pending applications already filed with the RoC, for Extension of Time not exceeding two months;

3. It will also cover such applications which have been rejected.