Extensions for the months of February and March, 2020

1. In Part-7 of the Quick Reference Series {hereinafter referred to as the *QR Series*) it was mentioned as follows:

         (i) The normal due dates for payment of ESI for the month of –

              (a) February 2020 is 15^th March 2020 and

              (b) March 2020 is 15^th April

       (ii) The extended due dates for payment of ESI for the month of –

              (a) February 2020 is 15^th April, 2020 and

              (b) March 2020 is 15^th May,

2. Since the lockdown is being extended e.f. 15.4.2020 for further 19 days up to 3.5.2020, and the extended date of February, 2020 (15.4.2020) would be the date of starting of extended period the lockdown, it was imperative for the Government to further extended the due date of payment of ESI for the month of February, 2020.
3. Therefore, the due date of payment of ESI for the month of February, 2020 has been further extended to 15^th May, 2020, i.e. 15 days have been substituted by 75 days only for the month of February,
4. Accordingly, now the extended dates are as follows:

(a) February 2020 is 15^th May, 2020 and

(b) March 2020 is 15^th May,

5. Source of the further extension is as follows:

What are the Income Tax effect of the extension?

• For the purpose of Explanation to section 36(1)(va) of the Income Tax Act, 1961 the *due date* stand extended.
• Accordingly, it will affect the reporting requirement in Tax Audit Report Form
• Now, in the Tax Audit of financial year 2019-20 relevant for assessment year, in Form 3CD, the due dates of February, 2020 and March, 2020 shall be required to be mentioned as 15.5.2020 and 15.5.2020 respectively, and suitable note may given in this regards.