COVID-19: Tax Relief

TANWAR ATUL & ASSOCIATES
TANWAR ATUL & ASSOCIATES

In view of the COVID-19 outbreak in the country, the Government of India has announced certain relaxations/reliefs in relation to statutory and regulatory compliance matters which were due to be done by March 31, 2020 or thereafter. Below is the summary of some of the important relaxations given by Hon’ble Finance Minister in respect of GST, Customs, Excise and Income Tax Laws.

Relief measures under GST

  • Timelines to file GST returns in Form GSTR 3B falling due in the month of March 2020, April 2020 and May 2020 shall be extended to June 30, 2020. In effect, due dates for returns for the month of February 2020, March 2020 and April 2020 shall be extended.
  • Due date to opt for composition scheme extended from March 31, 2020 to June 30, 2020. Due date of making payment for the quarter ending March 31, 2020 and filing of return for the FY 2019-20 by composition dealers shall be extended to June 30, 2020.
  • No late fee, interest, and the penalty for taxpayers having an annual turnover of less than INR 5 crores. For those having turnover of more than INR 5 crores, no late fee or penalty, but reduced interest at the rate of 9% shall be payable.
  • Due date of issuance of the notice, notification, approval order, sanction order, appeal filing, return filing, filing of statements, applications, reports, etc. (where the time limit thereof was expiring between March 20, 2020 to June 29, 2020) shall be extended to June 30, 2020.

Relief measures under Customs and Central Excise

  • Due date to make declaration under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 has been extended from March 31, 2020 to June 30, 2020. No interest shall apply, where dues are paid on or before June 30, 2020.

  • Customs clearance shall be made on a 24X7 basis till June 30, 2020.

  • Due date of issuance of the notice, notification, approval order, sanction order, appeal filing, return filing, filing of statements, applications, reports etc. (where the time limit thereof was expiring between March 20, 2020 to June 29, 2020) shall be extended to June 30, 2020

Relief measures under Income Tax laws

  • Due date to file an income tax return for the FY 2018-19 extended to June 30, 2020, which earlier was March 31, 2020.
  • Delayed deposit of TDS to attract a reduced rate of interest of 9% instead of 18% up to June 30, 2020.
  • Due dates for the issuance of notice, intimation, notification, approval order, sanction order, filing of the appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority (where the timeline thereof was expiring between March 20, 2020 to June 29, 2020) shall be extended to June 30, 2020.
  • Due dates for any compliance by the taxpayer including investment in saving instruments or investments for rollover the benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law (where the timeline thereof was expiring between March 20, 2020 to June 29, 2020) shall be extended to June 30, 2020.
  • Timeline to make the declaration, without an additional 10% amount, under Vivad Se Vishwas Scheme which was falling due on March 31, 2020 shall be extended to June 30, 2020. Hence, where a declaration is made under the scheme after March 31, 2020 but before June 30, 2020, no 10% additional amount shall be payable.
  • Delayed payment of taxes (advance tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, etc.) to attract a reduced rate of interest at the rate of 9% instead of 12% or 18% as the case may be. No late fee or penalty shall be leviable for this period of delay.
  • Due date to link Aadhaar and PAN has been extended from March 31, 2020 to June 30, 2020.

Relief measures by Department of Commerce

a. Extension of timelines for various compliances and procedure will be provided.

The effect to the above relaxations/reliefs shall be given through issuance of relevant/appropriate notification or circular in due course.

Disclaimer

The information contained herein above is based on the information publicly available as on the date of this publication and Press Note dated March 24., 2020 from the Government of India. The above is for information purposes only and the author takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above.

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