In order to give effect to the announcements made by the Union Finance Minister vide Press Release dated 24.03.2020, regarding several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the govt has brought in Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020 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.

1. Relief under Income Tax

1.1 Due date of filing income tax return extended for AY 2019-20:

Last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) has been extended to 30th June, 2020.

However, there is no waiver for the late fee under section 234F and interest under section 234A & 234B

1.2 Extension to made Tax Saving Investment for FY 2019-20:

The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which contains section 80C to 80 GGC has been extended to 30th June, 2020.

Therefore, due date for deduction under section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80EEB (Purchase of Motor Vehicle), 80G, 80GGA, 80GGB, 80GGC (Donations), etc. has been extended to 30th 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.

1.3 Scope of Donation u/s 80G has been extended:

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. Therefore, section 80G has amended to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund.

Hence, now every person who makes contribution 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. Accordingly unlimited amount as per finance capability can be contribute to PM CARES Fund to help the nation to fight with COVID-19.

Since, the date for claiming deduction u/s 80G under IT 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.

Any person including corporate paying concessional tax on income of FY 2020-21 under new regime can also make donation to PM CARES Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.

1.4 Extension to made investment to save capital gain tax:

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 30th 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.

1.5 Relaxations to SEZ:

The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.

1.6 Due date of payment of Income Tax has been extended:

Income-tax (e.g. advance tax, TDS, TCS), Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 can be paid up to 30.06.2020.

1.7 Rate of Interest has been reduced on late payment of tax:

Interest rate on late 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 20.03.2020 to 29.06.2020 and if paid by 30.06.2020 reduced to 9% (i.e. 0.75% per month).

1.8 Penalty/Prosecution has been waived off:

No penalty/prosecution shall be initiated for these non-payments Income-tax (e.g. advance tax, TDS, TCS), Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 and if paid by 30.06.2020.

1.9 Time limit for filing appeal or various compliance under the act has extended:

The due date falls during the period from 20.03.2020 to 29.06.2020 has been extend to 30.06.2020 for the filing of an appeal, reply or application or furnishing of any report, documents, return, statement, or such other record by whatever name called under the provision of the Income Tax Act.

1.10 Validity of Nil/Lower deduction certificate extended by 3 Month:

All the assesse who are holding Nil/lower TDS/TCS deduction certificate for the finance year 2019-20, such certificate shall be valid till 30.06.2020 or date of issuing new certificate whichever is earlier for the financial year 2020-21.

However, who are not having any Nil/lower TDS/TCS certificate for the financial year 2019-20 and willing to take Nil/lower TDS/TCS certificate for financial year 2020-21 are required to submit the application under modified procedure and shall be issued certificate up to 30-06-2020.

2. Goods and Services Tax

2.1 Extension of due date of filing of returns:

Due date of GSTR-3B for the month of February, March, April has been extended to 30.06.2020.

However interest shall be paid @ 0.75% per month by the person having turnover exceeding ₹ 5 Crore during the financial Year.

Waiver of late fee, penalty and prosecution

2.2 Late fee and Penalty has been waived off on late filing return:

No late fee or penalty shall be charged if all the return filed up to 30.06.2020

2.3 Due date to opt Composition Scheme extended

Date for opting for composition scheme for the financial year 2020-21 has been extended till last week of June 2020

2.4 Annual Return:

Date for filing GST Annual Return (i.e. GSTR-9 & 9C) for the financial year 2018-19 is due on 31-03-2020 has been extended till last week of June 2020.

2.5 Time limit for filing appeal or various compliance under the act has extended:

The due date falls during the period from 20.03.2020 to 29.06.2020 has been extend to 30.06.2020 for the filing of an appeal, refund application, reply or application or furnishing of any report, documents, return, statement, or such other record by whatever name called under the provision of the Income Tax Act.

3. Other Relaxations

3.1 Aadhar Card

Date of Aadhaar-PAN linking extended to 30th June, 2020.

3.2 Foreign Trade Policy 2015-20 extended for one year:

To provide continuity in the policy regime, the current FTP, valid till 31.03.2020 has been extended till 31.03.2021. Similar extension is made in the related procedure, by extending validity of Hand Book of Procedures.

Therefore, existing benefits available under the Export Promotion Scheme and other scheme will continue to be available for another 12 months.

3.3 Vivad se Vishwas Scheme

Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment instead of 31.03.2020.

Let’s analysis the effect in details

To discuss the effects of the above provision in detail specific on your business, you may mail us at somvirkataria@live.in or call or whatapp us on 9911166244

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We are in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. We handle the litigation matters in assessment and appeal. We provide expert advice in Transfer Pricing and International Taxation. We also deal in Government Grant and Incentive Scheme provided by central and View Full Profile

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