ITR or Income Tax Return filing 2020 last date for certain taxpayers has been extended by the Income Tax Department from 30th September 2020 to 31st October 2020. The Income Tax Department had to do that after the twin amendments by the Finance Bill 2020 in Section 139 (1) of the Income Tax Act 1961. After this amendment, companies and persons, who are required to get their accounts audited, can get it done by October 31st, 2020 instead of 30th September 2020.

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According to Section 139 (1) of the Income Tax Act 1961, it is mandatory for 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 maximum amount which is not chargeable to income-tax – to file return on or before the due date given by the Income Tax Department.

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Twin Amendments

As per the explanation 2 of the sub-section in Section 139 (1), the last date for ITR filing 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 30th September 2020 for the income tax assessment year 2020-21. The Finance Bill 2020 deleted the word 'working' and replaced 30th September 2020 by 31st October 2020 of the assessment year 2020-21.

While presenting the Budget 2020, Finance Minister Nirmala Sitharaman had also announced to propose taxpayers' charter citing, "Any tax system requires trust between taxpayers and the administration. This will be possible only when a taxpayer’s rights are clearly enumerated. Towards this end, and with the objective of enhancing the efficiency of the delivery system of the Income Tax Department, I propose to amend the provisions of the Income Tax Act to mandate the Central Board of Direct Taxes (CBDT) to adopt a Taxpayers’ Charter.”