Income Tax Relief Measures for Individuals, COVID 19

Due to the COVID-19 outbreak, the Finance Minister has announced various relief measures and to give effect to this The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 was passed on 31.03.2020.

Now, what this means for you as an individual taxpayer ?

Let us look into some major relaxations introduced in the ordinance.

• Extension of the last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to 30^th June 2020.
  (Earlier the due date was set to expire on 31.03.2020 now this has been extended meaning if you have not filed your return for FY 2018-19 you may file it by 30.06.2020)
• Extension of Aadhaar-PAN linking date to 30^th June, 2020.
  (If you have not linked your PAN with Aadhar your PAN would have become inoperational from 31.03.2020, now this time limit has been extended to 30.06.2020 and thereby you could link PAN-Aadhar and comply with this process if you have not done the same till now.)
• 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 30^th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.
  (This is a huge relief to those who could not meet the deadline of 31.03.2020, you can now make a proper estimation of tax liability and make investment/payment so as to reduce the tax burden)
• 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 30^th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.
  (If you have earned capital gain during the year 2019-20 you are to make certain investments to be eligible for claiming deduction, this has also been extended to 30.06.2020)

PM CARES FUND

Q.1 Whats is it ?

Ans. “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)”  is a special fund set up for providing relief to the persons affected from the outbreak of Coronavirus.

Q.2 Do I get any tax benefit by contributing to PM CARES FUND ?

Ans. The donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Also, since the date for claiming deduction u/s 80G under Income Tax Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20.