Ordinance Issued 31-03-2020
Government of India Ministry of Finance Department of Revenue
New Delhi, the 31st March, 2020
PRESS NOTE
New Delhi: 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.
It may be noted that 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.
Important Features and Extended Time Limits
Some of the important features and time limits which get extended by this Ordinance are as under:
Direct Taxes & Benami:
(i) Extension of last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to 30th June, 2020.
(ii) Extension of Aadhaar-PAN linking date to 30th June, 2020.
(iii) Extension of 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 (Donation), 80GGC (Donation for political party), 80IA, 80IAB, 80IAC, 80IB, 80IBA, 80IC, 80ID, 80IE, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80Q, 80QQB, 80RRB, 80U to 30th June, 2020.
(iv) Extension of date for making investment/construction/purchase for claiming roll over benefit in respect of capital gains under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB of IT Act to 30th June, 2020.
(v) Extension of date for making investment in respect of capital gains under section 54EE and 54BG to 30th June, 2020.
(vi) Extension of date of commencement of operation for the purpose of claiming deduction under section 80-IAC to 30th June, 2020.
(vii) Extension of date for payment of tax, equalization levy, interest, penalty, etc. and for filing of appeal, etc. to 30th June, 2020.
(viii) Extension of date for filing of belated/revised ITR for the FY 2018-19 (AY 2019-20) to 30th June, 2020.
(ix) Extension of date for linking of Aadhaar with PAN to 30th June, 2020.
(x) Extension of date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act to 30th June, 2020.
(xi) Extension of date for making investment/construction/purchase for claiming roll over benefit in respect of capital gains to 30th June, 2020.
Indirect Taxes:
(i) Extension of last date of filing of GST returns for the month of March, April and May 2020 as well as for the quarter ending March 2020 to the last week of June, 2020.
(ii) Extension of last date of filing of various GST statements, annual returns, etc. to 30th June, 2020.
(iii) Extension of date for making various GST related compliances to 30th June, 2020.
The Ordinance also empowers the Central 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
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.
Key Benefits
1. Extended Compliance Deadlines: All major tax compliance deadlines extended to June 30, 2020 2. Investment Window Extended: Time to make tax-saving investments extended 3. Capital Gains Benefits: Extended time for rollover benefits under various sections 4. PM CARES Fund: 100% deduction available with no limit 5. GST Compliance: Extended deadlines for GST returns and filings
Important Dates
- Ordinance Date: March 31, 2020
- Extended Deadline: June 30, 2020 (for most compliances)
- Effective Period: FY 2019-20 and FY 2020-21
Conclusion
The Ordinance provides comprehensive relief to taxpayers during the COVID-19 pandemic by extending various compliance deadlines and providing tax benefits for donations to PM CARES Fund. Taxpayers should take advantage of these extensions and ensure compliance within the extended deadlines.
For personalized guidance on tax compliance and taking advantage of these extensions, consult with a qualified Chartered Accountant who can help you navigate these provisions effectively.