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Wednesday, 1 April 2020

Corporate Compliance Relaxations via President Ordinance dt. 31.03.2020


THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020

·       Overview

Ministry of Law and Justice vide  Gazette id No. CG-DL-E-31032020-218979 and Ordinance No. 2 / 2020 dated 31st March, 2020  issued and has published an Ordinance with respect to Relaxation of certain provisions of the Taxation and Other Laws.
In exercise of the powers conferred by Article 123 (1) of the Indian Constitution the President of India is pleased to promulgate THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020.
·       Applicability:
It shall come into force at once.
·         Relaxation of certain provisions of specified Act.
Specified Act means:
ü   the Wealth-tax Act, 1957;
ü   the Income-tax Act, 1961;
ü   the Prohibition of Benami Property Transactions Act,1988;
ü   Chapter VII of the Finance (No. 2) Act, 2004;
ü   Chapter VII of the Finance Act, 2013;
ü   the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015;
ü   Chapter VIII of the Finance Act, 2016; or
ü   the Direct Tax Vivad se Vishwas Act, 2020;

Key Highlights of this Ordinance (Relaxations)
The Government had announced several relief measures in view of COVID-19 outbreak and the same has now been brought into effect through  THE TAXATION AND OTHER LAWS(RELAXATION OF CERTAIN PROVISIONS) Ordinance,2020 passed on 31st  March ,2020. Some Major Features of the Ordinance are listed below-

Ø  Amendment of Sections 10 and 80 G of Income Tax Act 1961: Any donation made to the PM CARES Fund shall be eligible for 100% deduction* under section 80G of the IT Act without any limit on the amount of deduction.

As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20.

Ø  Extension of last date of Aadhar PAN Linking  and Filing of ITRs for the FY 2018-2019 to 30th June, 2020.

Ø  Investments for claiming *Deduction under Chapter VIA-B* majorly u/s 80C(PPF, LIC, etc.), 80D (Mediclaim), 80G (donation), etc. can be made till 30th of June,2020 for claiming deduction  for FY 2019-20. The same shall be applicable w.r.t Capital Gain deductions u/s 54 to 54GB.

Ø  Vivad se Vishwas Scheme  (Declaration & Payment) & Date for passing of order or issuance of notice by authorities under various Direct taxes & Benami Law has also been extended to 30.06.2020.

Ø  Last date of furnishing of the Returns under Central Excise & GST (Subject to Staggered Mechanism) due in March, April and May 2020 has been extended to 30th June,2020.

Ø  Where the last date for filing of appeal, refund applications* etc., under the Central Excise Act, 1944 and Customs Act,1944 and Service tax and rules made there under is from 20th March 2020 to 29th June 2020, the same *has been extended to 30th June 2020.

Ø  Date for making payment under Sabka Vishwas Legal Dispute Resolution Scheme 2019 has been extended to 30th June 2020.



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