## Policy Analysis Report: Notification No. 38/2021 - Extension of Time Limits Under Taxation Laws
**1. Executive Summary:**
This report analyzes Notification No. 38/2021, issued by the Ministry of Finance (Department of Revenue) on April 27, 2021. This notification is an amendment to previous notifications (93/2020, 10/2021, and 20/2021) and extends the time limits for completion of specific actions under the Income-tax Act, 1961, and Chapter VIII of the Finance Act, 2016. The core purpose of this amendment is to provide further relaxation by extending deadlines due to ongoing circumstances, likely related to disruptions. The key finding is that specific deadlines expiring on April 30, 2021, are extended to June 30, 2021, for actions pertaining to assessments, reassessments, notices, sanctions, and intimations under the specified Acts.
**2. Introduction:**
This report aims to provide a detailed analysis of Notification No. 38/2021, based solely on the provided policy text. The analysis focuses on the key changes introduced by this notification, its implications, and the likely reasons behind the amendment. This report intends to inform the affected industry about the changes to timelines concerning income tax and finance act compliances.
**3. Policy Overview:**
* **Amendment:** This notification is an amendment to notifications No. 93/2020 dated December 31, 2020, No. 10/2021 dated February 27, 2021, and No. 20/2021 dated March 31, 2021.
* **Core Objective(s):** The core objective, as inferred from the text, is to extend the deadlines for specific actions under the Income-tax Act, 1961, and Chapter VIII of the Finance Act, 2016, due to previously extended deadlines nearing expiration.
**4. Background and Rationale:**
This notification is an amendment that extends the time limit previously extended by earlier notifications. The likely reason for this specific amendment is to provide further relief and flexibility to taxpayers and tax authorities amidst ongoing disruptions that hinder timely compliance and processing. The continued need for deadline extensions suggests ongoing challenges and possibly pandemic-related impact.
**5. Key Provisions / Changes:**
This notification focuses *specifically* on the changes introduced by the amendment text.
* **What specific part of the original policy is being changed:** Time limits specified in the previous notifications (93/2020, 10/2021, and 20/2021) for completion of actions under the Income-tax Act, 1961, and Chapter VIII of the Finance Act, 2016.
* **What the *new* rule/provision *is*:** The notification extends the deadlines expiring on April 30, 2021, to June 30, 2021, for the following actions:
* Passing assessment or reassessment orders under sections 153 or 153B of the Income-tax Act.
* Passing orders under subsection 13 of section 144C of the Income-tax Act or issuance of notice under section 148 or sanction under section 151 of the Income-tax Act.
* Sending an intimation under subsection 1 of section 168 of the Finance Act, 2016.
* **Important Clarification:** For issuance of notice under section 148, sanction under section 151, the provisions of sections 148, 149, and 151 of the Income Tax Act as they stood on March 31, 2021, will apply. This means the pre-Finance Act 2021 versions of these sections are to be used.
* **Explain the *difference* or the *effect* of this specific change:** This amendment grants an additional two months (May and June 2021) for completing the specified actions, providing extended timelines for both taxpayers and tax authorities. The clarification regarding sections 148, 149 and 151 also means that any notices or sanctions under those sections will be governed by the Income Tax Act as it stood prior to the Finance Act 2021.
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by these changes are:
* Taxpayers subject to assessment or reassessment under the Income-tax Act, 1961.
* Taxpayers involved in proceedings under section 144C, 148, or 151 of the Income-tax Act, 1961.
* Taxpayers required to receive intimation under subsection 1 of section 168 of the Finance Act, 2016.
* Tax authorities responsible for completing the actions outlined in the notification.
* Tax professionals representing the above taxpayers.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies mentioned:** The Central Board of Direct Taxes (CBDT), under the Department of Revenue, Ministry of Finance, is the responsible body for issuing this notification.
* **Timelines or procedures specified:** The key timeline specified is the extension of the deadline from April 30, 2021, to June 30, 2021, for the actions mentioned above.
* **Implementation aspects related *specifically to the changes*:** For issuance of notice under section 148, sanction under section 151, the provisions of sections 148, 149, and 151 of the Income Tax Act as they stood on March 31, 2021, will apply. This requires tax authorities to adhere to the regulations as they existed before the commencement of the Finance Act, 2021.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of these specific changes introduced by the amendment text is:
* Reduced pressure on taxpayers and tax authorities by providing more time to complete actions under the Income-tax Act, 1961, and the Finance Act, 2016.
* Facilitation of smoother compliance processes during a period of potential disruption.
* Ensuring that the issuance of notices/sanctions under specific sections is governed by the pre-Finance Act 2021 regulations for sections 148, 149 and 151.
**9. Conclusion:**
Notification No. 38/2021 represents a further extension of time limits for completing actions under the Income-tax Act, 1961, and Chapter VIII of the Finance Act, 2016. This amendment provides a two-month extension, shifting deadlines from April 30, 2021, to June 30, 2021, offering relief to taxpayers and tax authorities. The clarification regarding sections 148, 149 and 151 of the Income Tax Act, 1961 is also significant for compliance. The extension reflects a continued recognition of the challenges in meeting deadlines under the existing circumstances. This notification is significant as it impacts various stakeholders by providing them with additional time to comply with tax regulations and helps to ease the pressure on tax authorities.
Key Entities Referenced
Taxation and Other Laws Relaxation and Amendment of Certain Provisions Act, 2020: An act referred to as 'the said Act' which grants power to relax and amend certain provisions.
Ministry of Finance: The government ministry responsible for the notification.
Department of Revenue: A department within the Ministry of Finance.
Central Board of Direct Taxes: An organization under the Department of Revenue.
New Delhi: The city where the notification was issued. Specifically, the location of the Ministry of Finance, Department of Revenue (likely New Delhi, Delhi)
Income-tax Act, 1961: A specified Act mentioned in the notification, related to assessment or reassessment orders.
Finance Act, 2016: A specified Act mentioned in the notification, related to sending an intimation under subsection 1 of section 168.
RAJESH KUMAR BHOOT: Jt. Secy. Tax Policy Legislation Division. Signatory of the notification.
Tax Policy Legislation Division: Division of the government where RAJESH KUMAR BHOOT is employed
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-27042021-226777
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1580] नई दिल्ली, मंगलिार, अप्रैल 27, 2021/ििै ाख 7, 1943
No. 1580] NEW DELHI, TUESDAY, APRIL 27, 2021/VAISAKHA 7, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग )
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल् ली, 27 अप्रैल, 2021
का.आ. 1703(अ).—केंर सरकार, कराधान और अन्द् य जिजध (कजतपय उपबंधों का जिजिलीकरण और संिोधन)
(जिसे इसके पश् चात अजधजनयम कहा गया ह)ै (2020 का 38) धारा 3 की उपधारा (1) द्वारा प्रित् त िजत यों का प्रयोग
करते हुए जित् त मंत्रालय (रािस्ट्ि जिभाग) म ें अजधसूचना संख् या 93/2020 दिनांक 31 दिसंबर, 2020, अजधसूचना
सं. 10/2021 दिनांक 27, फरिरी 2021 तिा अजधसूचना स.ं 20/2021 दिनांक 31 माच ड 2021 को प्रकाजित भारत के
रािपत्र, असाधारण भाग II, धारा 3, उपधारा (ii) का.आ. संख् या 4805(अ) दिनांक 31 दिसंबर, 2020 तिा का.आ.
संख् या 966 (अ) दिनांक 27 फरिरी, 2021 तिा का.आ. संख् यांक 1432(अ) दिनाकं 31 माचड, 2021 क्रमि:
(इसके पश् चात उत अजधसूचना कहा गया ह)ै केंर सरकार उत अजधजनयम की उपधारा (1) का प्रयोिन जनर्िष्ड ट करती ह।ै
(अ) िहां जिर्नडष्ट अजधजनयम आयकर अजधजनयम 1961 (1961 का 43) जिसे इसके पश् चात आयकर
अजधजनयम कहा गया ह।ै
2412 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(क) उत अजधजनयम की धारा 3 की उपधारा (1) के खंड (क) म ें संिर्भडत दकसी कारडिाई को पूरा करना
आयकर अजधजनयम के तहत जनधाडरण अििा पुन:जनधारड ण के आिेि पररत करन े स े संबंजधत ह ै और धारा
153 या 153 (ग) के तहत ऐसी कारडिाई समाप् त करन े की समय सीमा 30 अप्रलै , 2021 िी उक त
अजधसूचनाओं द्वारा इसकी समय-सीमा आग े बढाकर 30 िून, 2021 कर िी गई ह।ै
(ख) उत अजधजनयम की धारा 3 उपधारा (1) के खंड (क) म ें संिर्भडत दकसी कारडिाई को परू ा करना आयकर
अजधजनयम की धारा 144ग की उपधारा (13) के तहत आििे पाररत करन े या धारा 149 म ें जनर्िष्ड ट
समय सीमा के अनुसार धारा 148 के तहत सूचना िारी करन े या आयकर अजधजनयम की धारा 151 के
तहत मंिरू ी िेन े और ऐसी कायडिाई को पूरा करने की समय सीमा 30 अप्रलै , 2021 िी उत
अजधसूचनाओं द्वारा समय सीमा आगे बढा कर 30 िून, 2021 कर िी गई ह।ै
स्ट्प ष्ट ीकरण:- िंकाओं के जनिारण के जलए यह स्ट् पष्ट दकया िाता ह ैदक धारा 148 के तहत सूचना िारी करन े के प्रयोिनाि ड
आयकर अजधनयम की धारा 151 के तहत मंिरू ी या धारा 149 म ें जनर्िष्ड ट समय सीमा के अनुसार आयकर अजधजनयम की
धारा 151,148,149 के उपबंधों म ें इस उपबंध के अधीन, िैसा भी मामला हो िैसे ि े 31 माच,ड 2021 को जित् त जिधेयक,
2020 के प्रारंभ स े पूिड जिद्यमान ि,े लागू होंगे।
(ग) िहां जित् त जिधेयक 2016 (2016 का 28) (इसके पश् चात जित् त जिधेयक कहा गया ह)ै का अध् याय VIII
जनर्िष्ड ट अजधजनयम ह ै और दकसी कायडिाई को पूरा करना उत जिधेयक की धारा 3 की उपधारा (1) के
खंड (क) म ें संिर्भडत जित् त जिधये क की धारा 168 की उपधारा (1) के तहत सूचना भेिने स े संबंजधत ह ै
और ऐसी कायडिाई को पूरा करने की समय सीमा िो 30 अप्रैल, 2021 को अंजतम जतजि िी, उत
अजधसूचनाओं द्वारा आग े बढाकर 30 िून, 2021 कर िी गई ह।ै
[अजधसूचना सं. 38/2021/फा. स.ं 370142/35/2020-टीपीएल]
रािेि कुमार भूत, संयुक्त सजचि कर नीजत एि ंजिधान प्रभाग
रटप्प ण : मुख्य अजधसूचना भारत के रािपत्र, असाधारण भाग II, धारा 3, उपधारा (ii) का.आ. संख् या 4805(अ)
दिनांक 31 दिसंबर, 2020 को प्रकाजित की गई िी।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 27th April, 2021
S.O. 1703(E).— In exercise of the powers conferred by sub-section (1) of section 3 of the Taxation and
Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020) (hereinafter referred to as the
said Act), and in partial modification of the notifications of the Government of India in the Ministry of Finance,
(Department of Revenue) No. 93/2020 dated the 31st December, 2020, No. 10/2021 dated the 27th February, 2021 and
No. 20/2021 dated the 31st March, 2021, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-
section (ii), vide number S.O. 4805(E), dated the 31st December, 2020, vide number S.O. 966(E) dated the 27th[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
February, 2021 and vide number S.O. 1432(E) dated the 31st March, 2021, respectively (hereinafter referred to as the
said notifications), the Central Government hereby specifies for the purpose of sub-section (1) of section 3 of the said
Act that, —
(A) where the specified Act is the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act)
and, —
(a) the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said Act,
relates to passing of any order for assessment or reassessment under the Income-tax Act, and the time
limit for completion of such action under section 153 or section 153B thereof, expires on the 30th day
of April, 2021 due to its extension by the said notifications, such time limit shall further stand extended
to the 30th day of June, 2021;
(b) the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said Act,
relates to passing of an order under sub-section (13) of section 144C of the Income-tax Act or issuance
of notice under section 148 as per time-limit specified in section 149 or sanction under section 151 of
the Income-tax Act, and the time limit for completion of such action expires on the 30th day of April,
2021 due to its extension by the said notifications, such time limit shall further stand extended to the
30th day of June, 2021.
Explanation.— For the removal of doubts, it is hereby clarified that for the purposes of issuance of notice under
section 148 as per time-limit specified in section 149 or sanction under section 151 of the Income-tax Act, under this
sub-clause, the provisions of section 148, section 149 and section 151 of the Income-tax Act, as the case may be, as
they stood as on the 31st day of March 2021, before the commencement of the Finance Act, 2021, shall apply.
(B) where the specified Act is the Chapter VIII of the Finance Act, 2016 (28 of 2016) (hereinafter referred
to as the Finance Act) and the completion of any action, referred to in clause (a) of sub-section (1) of
section 3 of the said Act, relates to sending an intimation under sub-section (1) of section 168 of the
Finance Act, and the time limit for completion of such action expires on the 30th day of April, 2021 due
to its extension by the said notifications, such time limit shall further stand extended to the 30th day of
June, 2021.
[Notification No. 38 /2021/ F. No. 370142/35/2020-TPL]
RAJESH KUMAR BHOOT, Jt. Secy. Tax Policy & Legislation Division
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(ii) vide S.O. No. 4805 dated 31st December, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.