Announcements of relief measures relating to statutory and regulatory compliance matters across sectors made by Union Finance Minister vide Press Release dated 24.03.2020 in view of COVID-19 outbreak
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 faced by 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 24.03.2020 vide a press release.
Some of the important features and time limits which get extended by this PRESS NOTE are as under ;-
–Due date extension: The last date to file ITRs for FY 18-19, extended to 30th June 2020 instead of 31st March 2020. For delayed payments of tax made till 30th June 2020, penal interest reduced from 12% to 9%. •
–Aadhaar-PAN linking due date extended to the 30th June 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 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.
–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
-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.
–Due dates for issue of notice intimation/notification/ approval order/sanction order/filing of appeal/applications/ reports any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 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 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.
-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. 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 an Ordinance 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.
-The Ordinance also made the another important announcement with respect to PM CARES FUND as under ;- 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. As 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. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can 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. The press note dated 24.03.2020 and Ordinance dated 31.03.2020 also contained the similar relief measures with respect to indirect taxes and the same are not dealt with here.
INCOME TAX RELIEF MEASURES ANNOUNCED BY FINANCE MINISTER ON 13TH MAY 2020
Due to ongoing Covid 19 lockdown, Hon Finance Minister has announced following income tax reliefs:-
1. All the pending income tax refunds to charitable trusts, non-corporate businesses and professions including proprietorship, partnership and LLPs and co-operatives shall be issued immediately.
2. The Tax Deducted at Sources (TDS) rates to all nonsalaried specified payments made to residents and Tax Collection at Source (TCS) rates for the specified receipts will be reduced by 25% of the specified rates for the remaining period of financial year 2020-21 i.e. from 14th May 2020 to 31st March 2021.
3. The due date of all income tax returns for the Assessment Year 2020-21 will be extended to 30th November, 2020. Similarly tax audit due date will be extended to 31st October, 2020.
4. Date of assessments getting barred on 30th September 2020 extended to 31st December 2020 and those getting barred on 31st March 2021 will be extended to 30th September, 2021.
5. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020.
SECTION 6 OF THE INCOME-TAX ACT, 1961 – RESIDENTIAL STATUS – CLARIFICATION OF RESIDENCY UNDER SAID SECTION CIRCULAR NO. 11 OF 2020 [F.NO.370142/18/2020-TPL], DATED 8-5-2020
Due to declaration of the lockdown and suspension of international flights owing to outbreak of Novel Corona Virus (COVID-19), the CBDT has decided that for the purposes of determining the residential status under section 6 of the Act during the previous year 2019-20 in respect of an individual who has come to India on a visit before 22nd March, 2020 and:
(a) has been unable to leave India on or before 31st March 2020, his period of stay in India from 22nd March, 2020 to 31st March, 2020 shall not be taken into account; or
(b) has been quarantined in India on account of Novel Corona Virus (Covid-19) on or after 1st March, 2020 and has departed on an evacuation flight on or before 31st March, 2020 or has been unable to leave India on or before 31st March, 2020, his period of stay from the beginning of his quarantine to his date of departure or 31st March, 2020, as the case may be, shall not be taken into account; or
(c) has departed on an evacuation flight on or before 31st March, 2020, his period of stay in India from 22nd March, 2020 to his date of departure shall not be taken into account.
Further as the lockdown continues during the Financial Year 2020-21 and it is not yet clear as to when international flight operations would resume, a circular excluding the period of stay of these individuals up to the date of normalisation of international flight operations, for determination of the residential status for the previous year 2020-21 shall be issued after the said normalisation.
CBDT REVISING RETURN FORMS TO ENABLE TAXPAYERS AVAIL BENEFITS OF TIMELINE EXTENSION DUE TO COVID-19 PRESS RELEASE, DATED 19-4-2020
CBDT said that due to outbreak of Covid-19, the Government has extended various timelines under the Income-tax Act, 1961 vide Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020. Accordingly, the time for making investment/ payments for claiming deduction under Chapter-VIA of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Medi claim),80G (Donations), etc. for FY 2019-20 has also been extended to 30th June 2020. Also, the dates for making investment/construction/ purchase for claiming roll over benefit in respect of capital gains under sections 54 to section 54GB has also been extended to 30th June 2020. Therefore return forms are being revised to facilitate reporting of the transactions of the relief period. Once the revised forms are notified, it will further necessitate the consequential changes in the software and return filing utility. Hence, the return filing utility after incorporating necessary changes shall be made available by 31st May, 2020 to avail benefits for FY 2019-20
SECTION 119, READ WITH SECTION 44AB OF THE INCOME-TAX ACT, 1961 – CBDT – INSTRUCTION TO SUBORDINATE AUTHORITIES – DEFERMENT OF REPORTING REQUIREMENT UNDER CLAUSE 30C AND CLAUSE 44 OF TAX AUDIT REPORT IN FORM NO. 3CD IN VIEW OF GLOBAL PANDEMIC DUE TO COVID-19 CIRCULAR NO. 10/2020 [F. NO. 370142/9/2018-TPL], DATED 24-4-2020
in view of the Global Pandemic due to COV1D-19 virus, the requirement to report the details of GST and General AntiAvoidance Rules (GAAR) under clause 30C and clause 44 in the Tax Audit Report shall be kept in abeyance till 31st March 2021
NEW PROCEDURE FOR REGISTRATION, APPROVAL, ETC. OF CERTAIN ENTITIES DEFERRED TO 1-10-2020 PRESS RELEASE, DATED 9-5-2020
In view of the unprecedented humanitarian and economic crisis, due to the outbreak of novel corona virus (COVID-19) and consequent lockdown, the CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be deferred to 1st October, 2020. Accordingly, the entities approved/ registered/ notified under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 (the Act) would be required to file intimation within three months from 1st October, 2020, i.e., by 31st December, 2020. Further, the amended procedure for approval/ registration/ notification of new entities shall also apply from 1st October, 2020.