The government has brought in the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31 March 2020 to provide for extension of various time limits under the Direct and Indirect Tax Acts, Vivad se Vishwas Act and the Benami Property Transactions Act and Rules or notifications issued under these Acts. The Ordinance has been promulgated with immediate effect to implement the statutory and regulatory relief measures announced by the Finance Minister on 24 March 2020, in light of the Covid-19 outbreak and consequent challenges and disruption faced by taxpayers in meeting compliance requirements.
The Ordinance also amends the Income-Tax Act to provide the same tax treatment to “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), which has been set up for providing relief to persons affected from the outbreak of Corona virus, as available to the Prime Minister National Relief Fund. Therefore, 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 June 2020, the donation made up to 30 June 2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person including corporates paying concessional tax on income of FY 2020-21 under the new regime can make donation to PM CARES Fund up to 30 June 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.
Some of the important time limits which get extended by this Ordinance are as under:
In addition, an enabling section has got inserted in the CGST Act, 2017 empowering the 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.
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