The new financial year 2020-21, commenced on April 1 amid the government-initiated nationwide coronavirus lockdown. The beginning of a financial year means the implementation of new tax structures and other changes in the financial space. However, this financial year is different as some tax related work of FY19-20 can still be done this year.

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The government has announced an extension on various tax-related deadlines of FY19-20 in view of the lockdown imposed to curb the spread of the coronavirus.

Earlier, media reports claimed that the government has extended the financial year by three months and the new financial year will start from July 1, 2020. However, the government later clarified that no extension of the financial year has been announced.

Here are the tax-related work of FY19-20 which can still be done in FY20-21:

Tax saving investments

The government has extended the deadline for making various investments for claiming deductions under Sections 80C, 80D and 80G up to June 30, 2020. The earlier deadline for these was March 31, 2020. The government has also extended the date for making investment/construction/purchase for claiming roll over benefits/deductions in respect of capital gains under Sections 54 to 54GB to June 30, 2020.

Tax savings play a significant role in achieving financial objectives. The deductions allowed under the Income Tax Act help individuals reduce their taxable income.

Linking of PAN with Aadhaar

The deadline for linking PAN with Aadhaar has been extended to June 30, from March 31. One can do it through Biometric Aadhaar authentication or by visiting PAN service centers of NSDL and UTITSL.

Filing belated and revised ITR for FY18-19

The government has extended the deadline for filing belated and revised income tax returns (ITR) from March 31, 2020 to June 30, 2020.

In case an individual has not filed income tax returns (ITR) for the financial year 2018-19 (or assessment year 2019-20), he can still do it until June 30, 2020, with a late fee of Rs 10,000. According to the Income Tax (I-T) Department, an assessee who does not submit a return of income within the deadline is allowed to file a belated return at a later time with certain penalty charges.

Also, one can revise ITR by June 30, 2020 in case a mistake has been made in the original one.

Tax disputes under 'Vivad se Vishwas' scheme

The government has extended the deadline for settling tax disputes under the 'Vivad se Vishwas' scheme to June 30, 2020 from March 31, 2020, without paying any interest or penalty.

Interest on due tax

The government has reduced interest rate to 9 percent from 12 percent per annum for delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS made until June 30, 2020.

Here are the key income tax changes that take effect from April 1:

New tax regime comes into force

In this financial year, income tax payers will have an option to pay lower income tax rates by foregoing income tax exemptions and deductions or continue paying the same tax rates by availing the deductions.

Under the new regime, individual whose income falls in the bracket of Rs 5 lakh-Rs 7.5 lakh, will have to pay 10 percent as tax on Rs 2.5 lakh. Individuals earning Rs 7.5 lakh to Rs 10 lakh will have to pay 15 percent as tax on their income. For income between Rs 10 lakh and Rs 12.5 lakh the tax rate applicable will be 20 percent. For Income between Rs 12.5 lakh and Rs 15 lakh, the tax will be payable at the rate of 25 percent. For Income above Rs 15 lakh, income tax rate remains at 30 percent.

New tax on employer's contribution to PF, NPS

As announced in Budget 2020, if employer contribution to Employees' Provident Fund (EPF), National Pension System (NPS) and superannuation fund on an aggregate basis exceeds Rs 7.5 lakh in a financial year, then the excess tax will have to be paid by the employee.