Now in this unprecedented Covid hit year, when many of the relaxations have been announced time and again, on the tax-saving investment front too, the due date for making such investments was extended to July 31, 2020 which in a usual case is allowed till the end of the financial year i.e. March 31, 2020.
And considering the same, CBDT has come out with all the ITR forms having the distinct Schedule DI (Details of investment), wherein assesses can separately show investments made during this extended period for claiming deduction for FY2019-20.
Further here only the timeline for making the claim got extended and not the total deduction i.e. allowed in a year or that remains applicable for 2019-20. Say for instance deduction allowed as part of Section 80 for the financial year 2019-20, considering the extended period allowed for investment, is still Rs. 1.5 lakh.
These deductions are classified as Chapter VIA deductions and comprise all such investments including insurance premium, PPF, principal repayment of housing loan, ELSS. Also there is a provided a deduction in respect of payments including medical insurance and expenses as part of Section 80D, 80DD and 80DDB & deductions allowed for payments towards Interest on housing and other eligible loans under section 80E, 80EE, 80EEA and 80EEB.
For investing capital gains in eligible asset
Here also for claiming the exemption, proceeds from capital gains was allowed to be invested in eligible asset till September 30, 2020. So, such investments made during the extended period i.e. till September 30 for claiming capital gains tax exemption also need to be shown in Schedule DI.
Here the exemptions allowed are under section 54 and include all such transactions as:
1. Purchase of residential property against a sale of residential property.
2. Transfer of agricultural land against the purchase of another agriculture land under section 54B
3. Purchase of residential property against transfer of long term capital asset other than residential property under section 54F
4. Purchase of specified bonds against the sale of land or building under section 54EC.
Say now, for all claiming capital gains tax exemption, when the timeline expired between March 20 and September 29, 2020, the government extended the date to September 30. For instance as part of Section 54 allows capital gain exemption in respect of sale of long term assets such as sale of building or land by making investments in specified bonds such as that of NHAI etc. within a period of six months from the date of transfer. So, if the long term asset was transferred on October 30, 2019, the investment for claiming capital gains exemption can be made until April 30, 2020. But now, as per the relaxation the same could be made until September 30, 2020.
So, all the investments during the extended period need to be shown in the separate DI column included in the tax return form for FY 2019-20.