Through amendments in Section 139 of the Income Tax Act, the Finance Bill 2020 has extended the last date for filing income tax return for companies as well as taxpayers required to get their accounts audited. Section 139 provides for various provisions related to filing of ITR. The due date for filing ITR for such taxpayer categories now stands extended from September 30 to October 31 of the Assessment Year.
Assessment Year is the year following a particular financial year. Say for instance, for the financial year 2019-20, the assessment year would be 2020-21.
Section 139 (1) mandates every person- be it a company, or a firm, or a person other than a company, or a firm, whose total income, or the total income of any other person in respect of which he is assessable under the Income Tax Act, during the previous year exceeded the threshold income not chargeable to tax, to file return on or before the due date.
What is the change made?
In respect of explanation 2 of Section 139 (1), the due date for "a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force" was the 30th day of September of the assessment year. But the Finance Bill 2020 has made two changes wherein at the first instance it has omitted the word 'working' and as a second change it has replaced '30th day of September' with "31st day of October".
So, now post this change, companies as well as taxpayers who are required to get their accounts audited can file their ITR by October 31.