form 16: Deadline to issue Form 16 extended to July 31, more time to save capital gains tax on property – The Economic Times

Clipped from: https://economictimes.indiatimes.com/wealth/tax/deadline-to-issue-form-16-extended-to-july-31-more-time-to-save-capital-gains-tax-on-property/articleshow/83843128.cmsSynopsis

Form 16 contains important information required by a salaried employee for filing ITR. The TDS certificate contains all the information related to salary received from an employer, tax deducted on salary and tax exemptions such as House Rent allowance and Leave Travel allowance (LTA) claimed via employer.

The deadline to issue Form 16 has been extended to July 31, 2021 from the previous deadline of July 15, 2021, as per a press release issued today by the Ministry of Finance. This implies that employees will get their Form 16 even later and will therefore be able to finalise their tax calculations only after that.

This would leave exactly two months with the individual taxpayers to file their income tax returns (ITR) as most individuals are able to finalise their taxes and ITRs only after they receive their Form 16. The current deadline for filing ITR for FY2020-21 is September 30, 2021.

“The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021,” said the press release.

Form 16 contains important information required by a salaried employee for filing ITR. The TDS certificate contains all the information related to salary received from an employer, tax deducted on salary and tax exemptions such as House Rent allowance and Leave Travel allowance (LTA) claimed via employer.

Apart from this, sellers of residential properties who want to invest in specified avenues to save on long-term capital gains tax on the profit made have been given more time to make these investments. Earlier, such people had to make the required investments within a specified time period from the date of sale of the house. The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September, 2021 (both days inclusive), may be completed on or before 30th September, 2021.

The government has also extended compliance deadlines related to companies and other individuals whose accounts are required to be audited before filing of ITR.

Some of these include the deadlines for: furnishing of Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made and others.

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