June 17: The Inland Revenue Department has extended the deadline for filing tax details and taxes due to prohibitory orders imposed to curb the spread of coronavirus.
The decision to extend the tax filing deadline by two months has given protection to businesses from the penalty for delaying filing tax returns.
Issuing a notice on Wednesday, the IRD said that it has extended the deadline to file details of value-added tax (VAT) and taxes based on those monthly and bimonthly details of previous two months—Chaitra and Baisakh (mid March to mid April and mid April to mid May)—till July 9.
Similarly, income taxpayers who file tax deducted at source (TDS) will now have to file details of the TDS and the taxes based on those details by July 9.
According to the IRD, businesses can now file excise duty for the month of Chaitra (mid March to mid April) and Baisakh (mid April to mid May) by July 9.
Other revenues like health, education and telecommunication tax filing deadline has been extended till July 9.
The IRD has extended the deadline for the tax filing in line with the request from the private sector. Though a recent order of the Supreme Court had paved the way for the government to collect taxes even during the lockdown, the IRD decided to extend the deadline for tax filing, citing difficulties for taxpayers due to prohibitory orders in various parts of the country to contain the second wave of coronavirus.
The Supreme Court on June 15 vacated its previous order of restricting the government from collecting taxes during the lockdown.