To give effect to the announcements, made by the Finance Minister on 24th March 2020, regarding relief measures relating to regulatory & statutory compliance matters across sectors in view of COVID – 19 outbreak, the government has brought about an Ordinance on 31st March 2020 which provides for extension of various limits under Taxation & Benami Acts. It also contains extension for time limits contained in Rules or Notification which are prescribed/issued under these Acts.
Some important features and time limits which get extended by this Ordinance are :
Direct Tax & Benami
- Extension of last date of filing original & revised return of income for FY 2018 – 19 to 30th June 2020.
- Extension of Aadhaar – PAN linking date to 30th June 2020.
- The due date for making investments/payments claiming deduction under Chapter VIA – B of the ITA (80C, 80D, 80G etc.) extended to 30th June 2020. Thus, investments/payments can be made upto 30th June 2020 to claim deduction for FY 2019 – 20.
- The date for making investments/construction/purchase to claim benefit/deduction in respect of Capital Gains under s. 54 to 54GB of the ITA extended to 30th June 2020. Thus, investment/construction/purchase made upto 30th June 2020 eligible to claim deduction arising from Capital Gains arising during FY 2019 – 20.
- The date for commencement of operation for SEZ units for claiming deduction under s. 10AA of the IT Act has been extended to 30th June 2020 for which approvals have been received by 31st March 2020.
- The date for passing of order or issuance of notice by authorities under Direct Tax & Benami Law has been extended to 30th June 2020.
- Reduced rate of interest of 9% for non – payment of Income Tax (eg. Advance tax, TDS, TCS), equalization levy, STT,CTT due for payment between 20th March 2020 – 29th June 2020 if these are paid by 30th June 2020. Further, no penalty/prosecution shall be initiated for non – payments.
- Under the Vivad Se Vishwas scheme, declaration and payment can be made until 30th June 2020 without additional payments.
- Last date of furnishing of Central Excise returns due in March, April and May 2020 extended to 30th June 2020.
- When the last date of filing of appeal, refund applications etc. under Central Excise Act 1944 / Customs Act 1962/ Service Tax and rules made there under is from 20th March 2020 to 29th June 2020, the same has been extended to 30th June 2020.
- The date for making payment to avail benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 extended to 30th June 2020.
PM Care Funds
A special fund – ‘PM CARES FUND’ has been set up for providing relief to persons affected from outbreak of Corona Virus. The ordinance provides that 100% donation made to the said fund shall be eligible under s. 80G of the ITA. Also, the limit of 10% gross income shall not be applicable for donations made to PM CARES FUND.
Donations made upto 30th June 2020 shall be eligible for deductions for FY 2019 – 2020.