The Ministry of Finance via a gazetted notification on Monday informed that the Central Government was making an amendment to a notification published on January 8, 2020.
The notice said that the words and figures “the 1st day of April 2020" will now be substituted with the phrase “the 1st day of July 2020”.
However amid speculation as to whether the Financial Year was being postponed, the Centre clarified that the delay in question was only for some income tax clarifications.
Clarification on Income tax related issues:
1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.
2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.
3) In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e. for taxability of income financial year is considered till 31st March only.
4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.
5) New LIC, mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.
6) Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June.
7) Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Installments due upto 31st March can be claimed as deduction even if paid till 30th June