An Ordinance was brought by Ministry of Finance on March 31, 2020 extending the date to file Income Tax Returns till June 30, 2020.
In order to give effect to the announcements made by the Union Finance Minister on 24th March, 2020 regarding several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the Central Government had introduced such ordinance which also provides for extension of time limits contained in the Rules or Notification which are issued under the Taxation and Benami laws.
The Central Government also stated that the date of making payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. of the Income Tax Act, 1961 for the 2019-20 along with the date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the Income Tax Act, 1961 (IT Act) has been extended to 30th June, 2020.
According to the Ordinance, the commencement date of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30th June, 2020 for the units which received necessary approval by 31st March, 2020. Furthermore, no authority under various direct taxes & Benami Law shall pass an order or issue any notice before 30th June, 2020.
It has provided by the Central Government that the reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20th March,2020 to 29th June, 2020 if they are paid by 30th June, 2020. Further, no penalty/prosecution shall be initiated for these non-payments and also declaration and payment under Vivad se Vishwas Scheme can be made up to 30th June,2020 without additional payment.
Furnishing of the Central Excise returns which are due in March, April and May 2020 can now be made till 30th June, 2020. In continuation, the last date for filing of appeal, refund applications etc., under the Central Excise Act, 1944 and rules as well as under the Customs Act, 1962 and rules which was made from 20th March, 2020 to 29th June, 2020, are now extended to 30th June, 2020.
The same shall go with the filing of appeal etc., relating to service tax. The central government has further extended the time for making payment to avail the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 till 30th June, 2020.
Along with tax relaxation government has provided flexibility in filing other compliance. Government further has inserted an enabling section under CGST Act 2017 resulting in extension of due date, filing in relief claims.