The government issued an ordinance Tuesday to bring into effect compliance relief measures for taxpayers in the wake of Covid 19 that were announced by the finance ministry last week. The ordinance also allowed for 100% exemption of donations made to PM Cares fund, set up to aid containment and relief efforts against the virus outbreak.
Citizens and organization can go to the website pmindia.gov.in and donate to PM CARES Fund using following details:
Name of the Account: PM CARES
Account Number: 2121PM20202
IFSC Code: SBIN0000691
SWIFT Code: SBININBB104
Bank & Branch: State Bank of India, New Delhi Main Branch
UPI ID: pmcares@sbi
Following modes of payments are available on the website pmindia.gov.in –
1.Debit Cards and Credit Cards
2.Internet Banking
3.UPI (BHIM, PhonePe, Amazon Pay, Google Pay, PayTM, Mobikwik, etc.)
4.RTGS/NEFT
Donations to this fund will be exempted from income tax under section 80(G).
“In order to give effect to relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the government has brought in an Ordinance on March 31, which provides for extension of various time limits under the Taxation and Benami Acts,” the finance ministry said in a statement.
Extension of several
time limits related to direct and indirect tax filings have been extended to
June 30, so has the date for passing of order or issuance of notice by tax
authorities under various direct taxes and Benami Law.
“Donation made up to June 30 to the PM CARES Fund shall be eligible for 100%
deduction under section 80G of the IT Act from income of FY 2019-20,” the
government clarified, adding that the limit on deduction of 10% of gross income
shall also not be applicable for such donations.
Further, individuals and corporates paying concessional tax on income of FY
2020-21 under new regime can make donation to PM Cares Fund till June 30, and
can claim deduction under section 80G against income of FY 2019-20. “(Taxpayer)
shall also not lose his eligibility to pay tax in concessional taxation regime
for income of FY 2020-21,” the government clarified.
Direct tax relaxations
The government
clarified that taxpayers can make investments or payments in LIC, Public
Provident Fund and National Savings Certificates under Section 80C, Medi-Claim
under Section 80D and donations under 80G till June 30, for claiming deductions
for FY 2019-20.
Also, investment, construction or purchase made up to June 30, shall be
eligible for claiming deduction from capital gains under sections 54 to 54GB of
the IT Act, arising in FY 2019-20. The
last date of filing of original as well as revised income-tax returns for the
FY 2018-19 has been extended till June 30, 2020. Aadhaar-PAN linking last date
has been pushed to June 30, from March 31.
The date for commencement of operation for the SEZ units for claiming deduction
under deduction 10AA of the IT Act has also been extended to June 30, for the
units which received necessary approval by March 31, 2020.
Further, reduced rate
of interest of 9% shall be charged for non-payment of income-tax, including
advance tax, tax deducted at source, tax collected at source, equalization
levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which
are due for payment from March 20 till June 29, if they are paid by June 30.
Further, no penalty or prosecution shall be initiated for these non-payments.
Taxpayers can also avail the Vivad se Vishwas Scheme till June 30, without
additional payment of 10% for settling outstanding tax disputes.
Indirect Tax relaxations
The government notified June 30 as the last date for furnishing of central
excise returns due in March, April and May 2020, and extended the last date of
filing appeal, refund applications etc. under the Central Excise Act, for which
the time was otherwise limited to March 20 and June 29. The deadline for filing
appeal related to service tax has been given a similar relaxation, till June
30.
Taxpayers can avail
the Sabka Vishwas Legal Dispute Resolution Scheme 2019 till June 30, giving
more time to settle their indirect tax disputes.
In addition to extension of time limits under the Taxation and Benami Acts, the
government has enabled itself by amending the CGST Act, 2017, to extend due
dates for various compliances including statement of outward supplies, filing
refund claims, filing appeals, among others, on recommendations of the GST
Council.