Latest Change in Income Tax & GST during COVID-19 period

COVID-19 has hit almost all sectors of the economy. PM Modi has also announced a 21-day complete lockdown till 14th April 2020 to check the spread of COVID-19.

On the other hand, the Union FM Smt Nirmala Sitharaman has announced some reliefs for businesses to cope up with the difficult times of COVID-19.

Amendments in Income Tax:-

Lets we explain the the following announcements passed or notified through the legal circulars and legislative amendments:

• The last date for the belated/revised filing of the income tax returns for the FY 2018-19 (AY 2019-20) is extended from 31st March 2020 to 30th June 2020.(Earlier we can file upto 31^st March now we got relief upto 30^th June for filing return for the FY 2018-19 so it’s a good chance for all of us who forget or wrongly filed the return can now revise or Belated filed it successfully upto 30^th June 2020.
• The last date for Aadhaar-PAN linking is extended from 31st March 2020 to 30th June 2020.
• The time limit to avail the Vivad Se Vishwas scheme is extended up to 30th June 2020. The waiver of the 10% additional charge continues up to 30th June 2020 instead of the earlier time limit of 31st March 2020.So this is also a good opportunity for all of us to avail the benefit of Vivad se Vishwas Scheme and settled down our pending cases easily.
• Interest at a reduced rate of 9% p.a. shall be charged instead of 12% or 18% p.a. towards the delayed payment/deposit of the following income tax levies, made between 20th March 2020 and 30th June 2020. Note that there is no extension in the deadlines.
• • Advance Tax
  • Tax Deduction at Source (TDS)
  • Tax Collection at Source (TCS)
  • Self-assessment tax
  • Equalisation levy
  • Security Transaction Tax (STT
  • Commodity Transaction Tax (CTT)

No late fee/penalty shall be charged for any delay relating to this period.

• The assessees and/or the tax authorities have got an extended time limit of up to 30th June 2020 where the time limit for the following compliance matter expires between 20th March 2020 and 29th June 2020:
  • Issue of notice/intimation/notification/approval order/sanction order
  • Filing of an appeal/furnishing of a return/statements/reports or any other documents
  • The time limit for the completion of proceedings by the tax authority
  • Investment in saving instruments or investments for rollover benefit of capital gains under the Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalisation Levy law, and the Vivad Se Vishwas law

Amendments in GST

The following announcements passed or notified through the legal circulars and legislative amendments, after being approved by the GST Council:

All of us know that there is extension in Due date of filing of GSTR-1 & GSTR-3B now we explain the same in brief:-

• Taxpayers with an annual aggregate turnover of up to Rs 5 crore: The due dates for filing GSTR-3B for February 2020, March 2020, and April 2020 have been extended up to the last week of June 2020. Accordingly, no late fee, interest or penalty shall be levied for them.
• Taxpayers with an annual aggregate turnover of more than Rs 5 crore:Except for a reduced interest charge, the due dates of GSTR-3B for February 2020, March 2020, and April 2020 stand extended up to the last week of June 2020. No late fee or penalty shall be levied. Any tax payments made after a delay of 15 days from the original due dates will attract a reduced interest at 9% p.a. instead of 18% p.a. The reduced interest charge will apply for the tax payments made between 20th March 2020 and 30th June 2020.
• Taxpayers registered under the composition scheme:The due date for filing the statement-cum-challan in CMP-08 for the last quarter of FY 2019-20, i.e. Jan-Mar 2020 is extended till the last week of June 2020. Similarly, the due date for filing GSTR-4 for FY 2019-20 is extended from 30th April 2020 to the last week of June 2020.
• The last date for opting into the composition scheme for the FY 2020-21 has been extended from 31st March 2020 up to 30th June 2020.It applies to taxpayers availing both the schemes under Section 10 of the CGST Act as well as the Notification no. 2/2019 dated 7th March 2019.
• Sabka Vishwas Scheme LDRS: The last date to avail the scheme is extended up to 30th June 2020. No interest will be charged for this period if the dues are paid before 30th June 2020.
• The taxpayers and/or the tax authorities have got an extended time limit of up to 30th June 2020, where the time limit for the following compliance matter expires between 20th March 2020 and 29th June 2020:
• • Issue of notice/notification/approval order/sanction order
  • Filing of an appeal/furnishing of a return/statements/applications/reports or any other documents