As the global pandemic deepens and the human cost of COVID-19 rises, the novel coronavirus outbreak is sending shocks across the world. In response to this global outbreak of COVID -19, the Govt. of India has announced various relief measures to mitigate the impact of the pandemic on businesses operations.

Below is an overview of some of the most relevant statutory compliances wherein relaxation is provided in statutory timelines (including reduction in interest rates/Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June. If the person pays the premium which is due in April  – 2020 and if he makes the payment of the same before 30.06.2020 then heees in some cases).

Direct Tax:

1. Last date for filing revised or belated income tax returns for FY 18-19 extended from 31st March, 2020 to 30th June, 2020. 

Author Remarks:       

♦ There is no extension of FY 2019-20, income is taxable till 31st March 2020 only and not upto 30th June 2020, i.e. for taxability of income financial year is considered till 31st March only.

2. Deductions under 80C, 80D, 80G etc. can be claimed by investing till 30th June. Hence investment /payment can be made upto 30.06.2020 for claiming the deduction under these sections for FY 2019-20. 

Author Remarks:        

♦ Investment in PPF/LIC etc which are eligible for deduction u/s 80C and mediclaim payment for claiming deduction u/s 80D can be done till 30.06.2020.

♦ There is a restriction of Rs. 1.50 Lakh for deposits in the PPF Account in one year. If the person has not deposited any amount in the PPF Account till 31.03.2020 and if he deposits it in between April to June 2020 then surely he will be eligible for deduction u/s 80C in the FY 2019-20. However, as per the present PPF rule, such person may not be able to invest again Rs. 1.50 Lakh for the FY 2020-21 as there is an yearly ceiling of Rs. 1.50 for deposit in the PPF Account. To take care of this situation, the Government need to amend the PPF rules to provide that Rs. 3 Lakh in aggregate can be invested for the FY 2019-20 & 2020-21.

♦ Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June. If the person pays the premium which is due in April  – 2020 and if he makes the payment of the same before 30.06.2020 then he cannot get deduction in the FY 2019-20 (AY 2020-21). Only the payment of such policies which has become due before 31st March would be considered for deduction.

♦ Contributions to the PM National Relief Fund or PM Cares Fund (new name)- Section 80G allows 100 % deduction for the amount contributed to this Fund. All contributions made between April 1, 2020 and June 30, 2020 will be eligible for deduction for only one FY under section 80G, as already specified under section 80G(5A).

3. Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Instalments due upto 31st March can be claimed as deduction even if paid till 30th June. 

Author Remarks:

♦ If a person deposits the amount in April to June 2020 in his housing loan account then he would be eligible for deduction u/s 80C subject to the condition that the amount is due till March  – 2020. It may be noted that interest on housing loan is eligible for deduction on accrual basis and not on payment basis. All interest which is due till 31st march 20 even if not paid(even till 30th June 20) is eligible for claiming in AY 2020-21 itself that way this is not specific to current extension as it is there in section for all years

4. This extension has also been allowed for claiming capital gains exemption from Section 54G to Section 54GB. Therefore any investment, deposit, payment, acquisition, purchase, construction or any similar action, which was required to be made for the purpose of claiming exemption as per the above sections, can now be made until June 30, 2020.

Author Remarks:

♦ Investment in capital gains bonds must be made within six months of the date of sale of the asset, which also now stands extended if it wasn’t met. Purchase or construction of a house property or deposit in a capital gains account scheme can be made by the due date of filing return anyways.

5. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020.

6. Vivad se Vishwas scheme– no additional 10% amount, if payment made by June 30, 2020.

7. Date of passing order or issuance of notice by the authorities under various direct tax and Benami Law has also been extended to 30th June 2020.

 8. Relaxation in deposit of TDS/TCS:

Section Period Due date Interest rate if payment made upto 30.06.2020 Interest rate if payment made after 30.06.2020
TDS (Sec 201) March 2020 30-04-2020 0.75% 1.5%
April 2020 07-05-2020 0.75% 1.5%
May 2020 07-06-2020 0.75% 1.5%
TCS (Sec 206C) March 2020 07-04-2020 0.75% 1%
April 2020 07-05-2020 0.75% 1%
May 2020 07-06-2020 0.75% 1%

Extension of due date to TDS/TCS related compliances:

Particulars Period Original due date Extended due date
4th Quarter TDS Statement Jan 2020 – March 2020 31-05-2020 30-06-2020
TDS Statement 26QB, 26QC, 26QD Feb 2020 30-03-2020 30-06-2020
March 2020 30-04-2020 30-06-2020
April 2020 30-05-2020 30-06-2020
4th Quarter TCS Statement 15-05-2020 30-06-2020
TCS Certificate 30-05-2020 30-06-2020
Furnishing 24G

(Sec 206C rwr 37CA and Sec 192(1A) rwr 30)

March 2020 30-04-2020 30-06-2020
April 2020 15-05-2020 30-06-2020
May 2020 15-06-2020 30-06-2020

9. The date of commencement of operation for SEZ units for claiming deduction u/s 10AA of IT Act has extended to 30.06.2020. This is applicable for SEZs that received approval before March 31, 2020.

Indirect Tax:

1. Compliances of GSTR 3B:

Aggregate turnover upto Rs. 1.5 Crores in preceding FY.

Period Due Dates Interest/ Late fees Relief Till Return filed after deferred date
February 22th  March 30th  June Interest @ 18% from due date till date of payment
March 22th  April 3rd July
April 22th  May 6th  July
May (for MP) 12th  July

Aggregate turnover Rs. 1.5 Crores to 5 Crores in preceding FY.

Period Due Dates Interest/ Late fees Relief Till Return filed after deferred date
February 22th  March 29th  June Interest @ 18% from due date till date of payment
March 22th  April
April 22th  May 30th  June
May(for MP) 12th  July

Aggregate turnover more than 5 Crores in preceding FY.

Period Due Dates Late fees Relief Till Interest Relief Till Return filed till 24.06.2020 Return filed after 24.06.2020
February 20th  March 24th  June 04th  April Interest @ 9% from due date till date of payment Interest @ 18% from due date till date of payment
March 20th  April 05th  May
April 20th  May 04th  June
May 27th  June

Composition Taxpayer Period Due Date New Date
Form GST CMP-08 Qtr 31st March 18th April 07th July
Form GST GSTR-4 FY 2019-20 30th April 15th July
Form GST CMP-02 FY 2020-21 31st March 30th June
Form GST ITC-03 FY 2020-21 Within 60 days from the comm.

of the relevant FY i.e 30th May

31st July
Other Taxpayer Period New Due Date
GST TDS, ISD, NRTB March to May 2020 On or before the 30th day of June 2020
GST TCS

Author Remarks:          

♦ The due dates for furnishing FORM GSTR- 3B for the months of February, March and April, 2020 has not been extended through any of the notifications only relief has been provided for Interest and Relief. 

♦ Late fees has been waived in case of GSTR-1 for the month of March, 2020 to May, 2020 & for the quarter ending 31st March, 2020 who has filed the GSTR-1 by 30th June, 2020. 

2. Relaxation in provision under rule 36(4)

Rule 36(4) of the CGST Rules, 2017 for claiming ITC maximum upto 10% of the credit available in invoices uploaded by supplier shall not apply to input tax credit availed  in FORM GSTR-3B for the months of February 2020 to  August, 2020, but that the said condition shall apply cumulatively for the said period in the return in FORM GSTR-3B for the tax period of September, 2020

3. E-Way Bill: The validity of E-Way Bill expiring between 20th March 2020 to 15th April extended upto 30-Apr-20.

4. Sabka Vishwas Scheme: Date of making payment to avail benefit under Sabka Vishwas Scheme (SVLRS-3) extended to 30th June 2020.

Hope this article will be useful. The Government and regulatory authorities are keeping a close watch on the evolving situation and the measures undertaken till now are expected to sooth the pain of India to certain extent.

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Author Bio

Qualification: CA in Practice
Company: Amitesh Jain & Co.
Location: Indore, Madhya Pradesh, IN
Member Since: 13 Apr 2020 | Total Posts: 1

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5 Comments

  1. ravi says:

    What is the new extension date for compulsory investment into another Property or capital gains account ?
    Property was sold in 3rd week of December’2019 in Mumbai and new property couldn’t be purchased due to COVID-19 lockdown. Thanks.

  2. Sandeep Amrattiya says:

    Dear sir,
    You have written FY 2018-19 in mentioned line of below paragraph i.e. ” if he deposits it in between April to June 2020 then surely he will be eligible for deduction u/s 80C in the FY 2018-19.”

    Is this correct Please clarify

    “There is a restriction of Rs. 1.50 Lakh for deposits in the PPF Account in one year. If the person has not deposited any amount in the PPF Account till 31.03.2020 and if he deposits it in between April to June 2020 then surely he will be eligible for deduction u/s 80C in the FY 2018-19. However, as per the present PPF rule, such person may not be able to invest again Rs. 1.50 Lakh for the FY 2020-21 as there is an yearly ceiling of Rs. 1.50 for deposit in the PPF Account. To take care of this situation, the Government need to amend the PPF rules to provide that Rs. 3 Lakh in aggregate can be invested for the FY 2019-20 & 2020-21.”

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