Various Challenges are being faced by the taxpayers in meeting the statutory and regulatory compliance requirements across all fields due to the pandemic situations created by COVID-19 epidemic.
To provide relaxation to the taxpayers in India, the Central Board of Direct Taxes (CBDT) has brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020 by extending various time limits under Direct Taxes.
Further, the Govt. of India has brought the further relief to the taxpayers by issuing a Notification dated 24.06.2020 to re-extend the due dates under the said Acts. The salient features of the notification are as under:
Now, the taxpayers can file their Original as well as Revised Income Tax Returns (ITR) for the FY 2018-19 AY 2019-20 till 31.07.2020
Further, the Income Tax Returns (ITR) for the FY 2019-20 AY 2020-21 can now be filed till 30.11.2020, which was originally required to be filed by 31.07.2020 and 31.10.2020.
Subsequently, the Due Date for Furnishing of Tax Audit Report (TAR) has been also extended to 31.10.2020 which is originally due to be filed on 30.09.2020
The GoI has also granted relief to the Small Taxpayers who are required to pay Self-Assessment Tax for the FY 2019-20 AY 2020-21 in terms of Waiver of Interest u/s 234A of the IT Act till 30.11.2020 subject to the aggregate self-assessment tax liability is Rs. 1 lakh. For those, whose self-assessment tax liability exceeds Rs. 1 Lakh, no relief is granted.
The Central Government has also extended the date for making various investment / payment for claiming deduction under Chapter VIA-B of the IT Act which shall includes the sections 80C (LIC, NSC, Tax Saving FD, ULIP, etc), 80D (Mediclaim Health Insurance), 80G (Donations), etc. till 31.07.2020. That means, the investments made up to 31.07.2020 can now be available for claiming deduction in ITR for the FY 2019-20 AY 2020-21.
The due date for claiming deductions u/s 54 to 54GB of the IT Act has also been extended till 30.09.2020, which shall includes the investments, construction, purchase in respect to claiming benefits of capital gain.
The due date for commencement of operation by the SEZ units for claiming deduction u/s 10AA of the Income Tax Act, 1961 has also further extended till 30.09.2020 for the units which received necessary approval by 31.03.2020
The due dates for TDS / TCS statements by the Deductor's, are able to file their TDS TCS Statements up to 31.07.2020 without any additional fees. Consequently, the due date for issuance of Form 16, 16A, etc. has also been extended till 15.08.2020.
The due dates for passing of order or issuance of notices by the competent authorities along with various compliances under Direct Taxes & Benami Law has been extended till 31.03.2021, which was earlier required to be passed on or before 31.12.2020. Subsequently, the due date for linking of PAN with Aadhaar has also been extended till 31.03.2021.
The reduce ROI i.e. Interest @ 9% for delayed payment of taxes, levies, etc. specified in the Ordinance shall not be applicable for the payments made after 30.06.2020.
Hon'ble Finance Minister has already announced the extension of due date for making payment under Vivad Se Vishwas Scheme without additional amount till 31.12.2020, it is hereby clarified that the necessary legislative amendments shall be made in due course of time. Now, the due date for furnishing of declaration, passing of order, making of payment under the scheme stands extended till 31.12.2020 which is earlier 30.12.2020
Since, the CBDT has already deferred the new procedure u/s 10(23C), 12AA, 35 & 80G of the Income Tax Act, 1961 till 01.10.2020 vide the Press Release dated 08.05.2020, which is originally required to be implemented on 01.06.2020. Vide this notification, it is hereby clarified that the old procedure under the relevant sections shall continue to be followed during the period 01.06.2020 to 30.09.2020. The requisite legislative amendments shall be moved in due course of time.
It is also clarified that the necessary amendments in the act for reduction of Rate of TDS by 25%, which are mentioned in the Press Release dated 13.05.2020 containing the reduction of TDS for the period 14.05.2020 to 31.03.2021 shall be brought in the mean time.
Source: PIB India