The last date for filing income tax return (ITR) for the assessment year 2019-20 with no penalty or a fine is July 31, 2019. However, the due date for ITR filing may get an extension for the taxpayers to file the return of income well beyond the last date even without paying any fine. 

Here are 5 important reasons that may make the government extend the ITR filing due date.

1. Extension of Form 16 issue date

On June 4, 2019, Central Board of Direct Taxes (CBDT) had issued a notification extending the deadline for the employers to issue Form 16 to employees from June 15 to July 10. It has been observed that several employees had still not received Form 16 even after the due date. With only a few days left, if Form 16 is received at a later date, the time to file ITR will understandably be less. “Salaried taxpayers now have a shorter window to file their tax returns due to the extension of the due date of providing Form 16 for employers. 

2. Changes in Form 16

There are two parts of Form 16, in which Part A was standardised for all employers but the Part B was not standardised. The new rule asks the employer to ensure generation of accurate TDS certificate in Part B of Form No. 16 As per the new format, every employer is required to report the detailed break-up of salary, exempt allowances and deductions claimed and allowed to an employee.

3. Extension of Form 24Q issue date

The CBDT had also extended the due date of filing of Form 24Q for the financial year 2018-19 from May 31, 2019, to June 30, 2019. The Form 24Q is a quarterly statement of deduction of tax in respect of salary for the four quarters of the financial year and is to be filed by the employer. As per the new rules, the employers have to report correct data in Annexure II of Form 24Q.

4. Verification of pre-filled data

Once Form 16 is received, one needs to ensure if the employer has generated it from the TRACES, the official software of the income tax department. Also, it is important to ensure that the figures in Form 16 and Form 26AS are matching. Lastly, the I-T department has cautioned that the pre-filling of ITR is only for the taxpayer’s convenience. Therefore, as a taxpayer one needs to verify the pre-filled data carefully and add any other taxable income which is not pre-filled.

5. Long term capital gain (LTCG )

The long term capital gain (LTCG ) tax was re-introduced in the FY 2018-19 and assessee were finding it a tad difficult to enter the figures in the software while filing the ITR. 
Even though these 5 reasons for an extension exists as of now, the last date for ITR filing may not be extended if things fall in place. It’s always better to not wait for the last minute and file the ITR well in advance.