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.
