Finance Ministry Promulgates Taxation & other Laws (Relaxation of Certain Provisions) Ordinance

Speed Post News Network

New Delhi : In order to give effect to the announcements made by the Union Finance Minister pn March 24, 2020, regarding several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the Government promulgated an Ordinance on March 31, 2020, which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the Rules or Notification which are prescribed/ issued under these Acts.

It may be mentioned here that the outbreak of Novel Corona Virus (COVID-19) across many countries of the world has caused immense loss to the lives of people, and accordingly, it has been termed as pandemic by the World Health Organisation and various Governments including Government of India. Social distancing has been unequivocally accepted to be the best way to contain its spread leading to announcement of complete lockdown in the country.

Keeping in view the challenges facing the taxpayers in meeting the compliance requirements under such conditions, the Union Finance Minister had announced several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak on March 24, 2020, vide a press release, according to a PIB release..

Some of the important features and time limits which get extended by this Ordinance are : Direct Taxes & Benami: Extension of last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to June 30, 2020; Extension of Aadhaar-PAN linking date to June 30, 2020.

The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to June 30, 2020. Hence the investment/payment can be made up to June 30, 2020, for claiming the deduction under these sections for FY 2019-20; The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to June 30, 2020. Therefore, the investment/ construction/ purchase made up to June 30, 2020, shall be eligible for claiming deduction from capital gains arising during FY 2019-20; The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to June 30, 2020 for the units which received necessary approval by 31.03.2020.

It has provided that reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from March 20, 2020 to June 29, 2020 if they are paid by June 30, 2020. Further, no penalty/ prosecution shall be initiated for these non-payments.

Indirect Taxes: Last date of furnishing of the Central Excise returns due in March, April and May 2020 has been extended to  June 30,2020; Wherever the last date for filing of appeal, refund applications etc., under the Central Excise Act, 1944 and rules made thereunder is from March 20, 2020, to June 29, 2020, the same has been extended to June 30, 2020; Wherever the last date for filing of appeal etc., relating to Service Tax is from March 20, 2020 to June 29, 2020, the same has been extended to June 30, 2020.

PM CARES FUND : A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Corona virus. The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund. Therefore, the donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund, according to a PIB release.

As the date for claiming deduction u/s 80G under IT Act has been extended up to June 30, 2020, the donation made up to June 30, .2020 shall also be eligible for deduction from income of FY 2019-20.