The taxation and other laws(relaxation and amendment of certain provisions) bill, 2020 was introduced in lok sabha by our finance minister Nirmala Sitaraman,was promulgated on 31 march,2020.
The ordinance provides certain relaxations, in view of spread of the coronavirus pandemic in India,which are in relation to compliance,such as extension of time limit and waiver of penalty,in relation to specified laws which include-income tax act,1961,some finance acts,the central excise act,1944,the customs act,1962,and the prohibition of Benami Property Transactions Act,1988.
EXTENSION OF TIME LIMITS:
The time limit for compliance or completion of certain actions under the specified laws ,falling during the period MARCH 20,2020 TO JUNE 29,2020 ,have been extended to JUNE 30,2020 or such other date after JUNE 30,2020 which the central govt.may notify.
The time limits for compliance have been extended for certain actions which include:
· Issuing notices and notifications,completing proceedings,and passing orders by authorities and tribunals,
· Filing of appeals,replies, and applications,and furnishing documents,and
· Making any investment or payment for claiming certain deductions or allowances under the IT Act,
Such as those under sections 80c to 80ggc of the IT ACT, or those which the govt.may notify.
The govt. may notify different dates for the completion of different actions.
INTEREST AND PENALTY:
· Payment of any tax,made after the due date(due between march 20,20 and june 29,2020)but before june 30,2020 (or any further date as specified by govt.),will not be liable for prosecution or penalty.
· The rate of interest payable for the delay in payment will not exceed 0.75% per month.
GST RELATED COMPLAISANCE:
· The ordinance amends the central goods and services tax act,2017 to allow the central govt. to notify the extended time period based on the recommendations of the gst council, for compliance and actions related to various GST, under the act,.
· This will be done only in the case of actions which cannot be completed or compiled with due to force majeure (such as war,epidemic,or a natural calamity)
DONATIONS TO PM CARES FUND:
The ordinance amends the IT Act that, allows persons to lower their taxable income by availing deductions.
whoever donates to the PRIME MINISTER’S CITIZEN ASSISTANCE AND RELIEF IN EMERGENCY SITUATIONS FUND(PM CARES FUND) will be eligible to 100% deduction,i.e;an amount equivalent to the donations made by a person to the fund can be deducted from his income,while calculating his total income under the IT Act.
RESOLUTION OF DISPUTES RELATED TO DIRECT AND INDIRECT TAXES:
The ordinance amends the direct tax vivid se vishwas act,2020 which provides a mechanism for resolution of pending tax disputes related to income tax and corporation tax.
For resolving disputes,a person must file a declaration and pay an amount as specified under the act.
An additional amount to be paid if the payment was made after 31 march,2020.
The ordinance extends this deadline to june 30,2020 which implies that no additional amount is required to be paid if the payment is made by june 30,2020.
The ordinance amends the finance (no.2) act,2019 to extend the time limits specified for completion of various actions under the sabka vishwas (Legacy dispute resolution) scheme. This scheme provides a mechanism for resolution of pending disputes related to indirect taxes such as excise duty and various cesses. for resolving disputes , a person must file a declaration,based on which the designated committee will determine the amount payable under the scheme for resolution and issue a statement.
Under the act, the committee must issue the statement within 60 days of the receipt of declaration.the ordinance removes the 60 day time limit and specifies that the committee must issue the statement by may 31,2020.
Under the scheme,for resolution of disputes ,a person is required to pay the amount determined by the designated committee within 30 days of the issue of statement.the ordinance removes the 30-day time limit and specifies that the payment must be made by june 30,2020.
Credit: D.L. Anusha