Govt examining industry#39;s demands of relaxing tax compliance deadlines: Report


The government has received several representations from representations, including from MSMEs, seeking an extension of up to three months for tax compliance.

tax (Image: Moneycontrol)

tax (Image: Moneycontrol)

The Centre is examining proposals to extend compliance timelines for income tax and goods and services tax (GST) to provide relief to businesses during the second COVID-19 wave.

The government has received several industry representations, including from micro, small and medium enterprises (MSMEs), seeking an extension of up to three months, Business Standard reported.

“We have received many representations….These are genuine concerns and will be addressed appropriately,” a government official told the publication.

Also read: New income tax return forms notified: Here’s your guide to choosing the right ITR

Moneycontrol could not independently verify the story.

Around 11 GST and 15 income tax compliances are due in April, Business Standard reported. Some compliances due in April and May include monthly GST returns, TDS deposit, TDS/TCS returns for Q4, filing of specified financial transactions, and LLP annual returns.

Tax experts told the publication that small and medium enterprises would be the most affected if the tax compliance deadlines were not extended.

Several states have imposed night curfews, weekend lockdowns, and other restrictions to curb the spread of COVID-19 infections, which could harm the industry. Delhi has imposed a week-long lockdown till April 26.

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