Wednesday, 29 April 2020

All about Reliefs and Relaxation in compliance related to Income Tax under a situation of COVID-19 pandemic.


Extension of Income- Tax compliance in view of COVID-19 outbreak.



1.  Extension of due date of income tax return for the F.Y 2018-19.

Extension of last date of filing of original as well as revised income-tax returns for the F.Y 2018-19 (AY 2019-20) from 31st March 2020 to 30th June 2020.

2. Due dates for making various investment/payment for claiming deduction under income tax for the F.Y 2019-20 has been extended.

Due dates for  making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.

3. The date for making investment for claiming deduction under capital gain has been extended.


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 IT Act has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.


4. For SEZ units, the date for commencement of operation for claiming deduction under income tax has been extended.


The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.

5. The date of passing or issuance of notice by authorities under various income tax act has been extended.


Issue  of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority  under Income Tax Act,  Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act,  STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas  law  where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020.

6. Reduction in interest rate from 12% to 9% for delay payment of tax.

For delayed payments of advanced tax, self-assessment tax and  regular tax  made between 20th March 2020  and  30th June 2020,  reduced interest rate  at 9%   instead of 12 % per annum ( i.e. 0.75% per month instead of 1 percent per month) will be charged  for this period.  No late fee/penalty shall be charged for delay relating to this period.

7. Reduction in interest rate from 18% to 9% for delay in deposit of TDS.

For delayed payments of TDS made between 20th March 2020  and  30th June 2020,  reduced interest rate  at 9%   instead of 18 % per annum ( i.e. 0.75% per month instead of 1.5% percent per month) will be charged  for this period.  No late fee/penalty shall be charged for delay relating to this period.

8.  Extension in date of linking of Aadhaar-PAN from 31st March 2020 to 30th June 2020.

9. Extension of scheme of Vivad se Vishwas upto 30th June 2020. No additional 10% amount, if payment made by June 30, 2020.

10. Extension of validity of nil/ lower deduction TDS/TCS certificate till 30th June 2020 and modification in procedure for filing application for nil and lower deduction certificate.

Extension

·    In case of those assessees who have applied for a nil or lower rate of TDS on the TRACES portal [section 197 / 206C(9)] for FY 2020-21, which are pending disposal as of date and who have been issued a certificate for the preceding FY 2019-20, such certificate shall be applicable till 30 June 2020 for FY 2020-21, or disposal of their applications by the Assessing Officer (AO), whichever is earlier.
·      In case of those assessees who could not apply for FY 2020-21 on the TRACES portal [section 197 / 206C(9)] and who have been issued a certificate for FY 2019-20, such certificate shall be applicable till 30 June 2020 for FY 2020-21. However, such assessees are required to make an application for issue of certificate for FY 2020-21 at the earliest, giving details of transactions, deductor/collector of the TDS/TCS to the AO, as soon as normalcy is restored or 30 June 2020, whichever is earlier as per the modified procedure as detailed hereunder.
·   With respect to payments to non-residents (including foreign companies) having a Permanent Establishment (PE) in India who are not covered by the situations mentioned above (i.e. they do not have an existing lower / nil TDS certificate for the FY 2019-20), tax is to be deducted at 10 percent plus surcharge and cess on payments to be made till 30 June 2020, or disposal of their applications, whichever is earlier.

         Modified procedure:

·  Those assesses who have not applied for Nil or lower TDS/TCS certificate in the TRACES portal and who do not have a certificate for FY 2019-20, are required to make an application as per the modified procedure.
·   The modified procedure for application under sections 197/206C(9) is briefly stated below:
- Applications to be made via email to the concerned AO
- Email should contain the following data and documents:
- Duly filled Form 13 along with Annexure I or III as applicable;
- Details which otherwise are required to be uploaded on TDS-CPC website while filling up
Form 13;
- Projected Balance Sheet (BS) and Profit & Loss (P&L) Account for FY 2020-21;
- Provisional BS and P&L Account for FY 2019-20;
- BS and P&L Account for FY 2018-19;
- Form 26AS for FY 2019-20 & 2018-19
- Income tax Return (ITR) Form for FY 2018-19.

·      The existing process for making applications under section 195(2) and 195(3) will continue to apply except that such applications need to be made via email to the concerned AO. The certificates under the said sections will be issued by email mode.
·      The certificates under the modified procedure shall be issued up to 30 June 2020 or any other date earlier to it, as specified by the AO communicated by email to the applicant containing the following information:
·
Sr no
TAN of the deduct or
PAN of the Deductee
Financial year
Section under which Tax at source is to be deducted / collected
Estimated amount of income / sum to be received / paid
Applicable rate of deduction / collection
Valid From Date
Valid to Date











·       The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the deductor/collector.

11. Lower/nil rate of TDS/TCS applications to be disposed liberally by 27.04.2020.

·      In all the cases where assessees (payees or buyers/licensees/lessees) have timely filed application for lower or nil deduction of TDS/TCS on the TRACES Portal for F.Y.2019-20 and such applications are pending for disposal as on date, the applicant shall intimate, vide an e-mail addressed to the Assessing Officer concerned, the pendency of such applications for FY 2019-20 for the lower/nil deduction/collection certificate under sections 195, 197 or 206C(9) of the Income-tax Act along with the required documents and evidences of filing their application in TRACES Portal.
·    The Assessing Officer shall dispose of the applications by 27.04.2020 and communicate to the applicant regarding the issuance/rejection of certificate vide email. The certificate issued for lower/nil rate TDS or lower TCS shall be applicable for the amount credited/debited during the FY 2019-20 after the date of making of application u/s 195,197 or 206C(9) but remained unpaid or not received till the date of issuance of the certificate by the Assessing Officer.
·    The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the deductor/collector.

12. Form 15G & 15H submitted for FY 2019-20 would be valid up to 30.06.2020.

Form 15 H:- is for taxpayer who are 60 years or older and have income below the taxable limit.
Form 15 G:- is for taxpayer who are below 60 years of age and have income below the taxable limit.
It is important to submit Form 15G/Form 15H to the financial institution (usually banks) to avoid the deduction of tax. Banks usually deduct TDS from the interest income on FDs if it crosses the threshold limit.

To mitigate the hardships of small taxpayers, it has been decided that if a person had submitted valid Forms 15G and 15H to the Banks or other institutions for F.Y. 2019-20, then these Forms would be valid up to 30.06.2020. This will safeguard the small tax payers against TDS where there is no tax liability (Order passed on 03.04.2020).
As per order in case  if a person had submitted valid Forms 15G and 15H to the Banks or other Institutions for F.Y. 2019-20, then these Form 15G and 15H will be valid up to 30.06.2020 for FY 2020-21 also. It is reiterated that the paver who has not deducted tax on the basis of said Forms 15G and 15H, shall require to report details of such payments/credits in the TDS statement for the quarter ending 30.06.2020 in accordance with the provisions of rule 31A(4)(vii) of the Income-tax Rules, 1962.

No comments:

Post a Comment