Tax Alert - Government extends tax filing deadline

The Indian Government has announced vide a press release on 31 July 2017, that in cases where the original due date for filing income tax return for Financial Year (FY) 2016-17 (1 April 2016 to 31 March 2017) was 31 July 2017 has been extended to 5 August 2017.  The Government has cited technical snags and last-minute rush as reasons for the extension.

The consequential interest implications in case of unpaid tax liability on account of such extension under section 234A of the Income-tax Act, 1961 (the Act) would only apply if tax return is filed beyond 5 August, 2017. However, interest under sections 234B of the Act would continue to apply till the date of payment of tax for every month or part of the month.

Further, the Government have also provided relief by allowing taxpayer to e-file the return without linking of Permanent Account Number (PAN – unique tax ID number) with AADHAAR (unique ID number). However, quoting of AADHAAR number or enrolment ID in the return is still mandatory.  A temporary relief has been provided by allowing the taxpayers to link the PAN with AADHAAR subsequently by 31 August 2017.  The returns will not be processed until the linkage of AADHAAR with PAN is done.