Ministry of Finance recently introduced an Ordinance on March 31, 2020 to bring into effect compliance relief measures for taxpayers in the wake of COVID-9 that were announced by the Finance Minister on March 24, 2020. Salient features of the Ordinance are as follows:
Direct Taxes & Benami:
|1.||Last date of filing original and revised income-tax returns for FY 2018-19||June 30, 2020|
|2.||Aadhaar-PAN linking date||June 30, 2020|
|3.||Making investment/payment for claiming deduction under Chapter-VIA-B of Income Tax Act (IT Act)||June 30, 2020|
|4.||Making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains u/s 54 to 54GB||June 30, 2020|
|5.||Commencement of operation by SEZ units for claiming deduction u/s 10AA||June 30, 2020 for units which received approval by March 31, 2020|
|6.||Passing order/issuance of notice under various direct taxes & Benami Law||June 30, 2020|
|7.||Reduced rate of interest of 9% to be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS), Equalization Levy, STT, CTT which are due 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.|
|8.||Under Vivad se Vishwas Scheme, declaration and payment can be made up to 30.06.2020 without additional payment.|
|1.||Central Excise returns due in March, April and May 2020||June 30, 2020|
|2.||Filing appeal, refund applications etc., under the Central Excise Act/ Customs Act/Service Tax and rules made thereunder due from 20th March 2020 to 29th June 2020||June 30, 2020|
|3.||Making payment to avail benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019||June 30, 2020|
|4.||An enabling section inserted in the CGST Act, 2017 empowering Government to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council.|
PM CARES Fund
Donation made to PM CARES Fund will be eligible for 100% deduction u/s 80G of IT Act. Further, 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, donations made till 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person 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 relief measures announced are a welcome move. We appreciate the intent of the government to provide businesses with the much needed flexibility due to disruption. Extension of sunset clause by 3 months for units approved before March 31, 2020 is in line with NASSCOM’s recommendation to Ministry of Finance. With the global lockdown including India, there is a complete restriction on the movement of people and goods other than essential services. As a result, shipments for IT infrastructure were delayed and planned travel was postponed. As a result, the industry’s ability to set up IT-ITES operations by March 31, 2020 was severely impacted. This will remove hardships faced by such units.
Copy of the Press Release is attached for your reference.