Deduction under Chapter VI-A includes deduction u/s 80A to 80VV, however we are mostly aware about section 80C to 80U which covers your investment in Life insurance, PPF, mediclaim policy etc.
With the ongoing circumstances people are under confusion on how will they get deduction as they cannot go out to bank’s for depositing their PPF cheque or LIC cheque especially those who don’t use net banking.
In this regard our honorable Finance minster has held a video conference wherein she proposed various relief and had also postponed various due dates to 30.6.2020 which included:
“Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”
In the above press release it was mentioned that time limit of investment in saving instruments shall be extended to 30th June. Now it was not clarified what is the meaning of this saving instrument. Will it cover 80C, 80D or any other investment or not?
In the Video conference it was mentioned that relevant department shall issue notification for better clarification. However as of now no notification has been issued by Income Tax department for any clarification.
Many tax practitioner and CA are of the opinion that the saving instrument relates to tax saving instrument which will include all measures covered in section 80C or any other investment.
However one more issue which has been raised is that even if a person is allowed to invest till 30.06.2020, how will government bifurcate whether that investment/ deduction relates to F.Y. 2019-20 or F.Y. 2020-20.
But looking at the relief given and due date extended it can be advised that one would get deduction even if amount is invested/ deposited after 31.03.2020.
This article is just for information purpose it is always advisable to hire a professional for practical execution. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.