The World Health Organization (WHO) has declared the Novel Coronavirus (COVID-19) a global pandemic, and its rapid spread causes major economic disruption. To control the spread of COVID 19, India, like many other countries, is in lockdown mode and this has impacted individual taxpayers
In order to Rescue taxpayers, the Government of India came up with by Providing various Relief Measures
Due dates are extended for the individuals
1. Belated / revised tax return filing
On or before 31 March 2020, a belated tax return and revised tax return for the financial year (FY) 2018-19 had to be filed. This due date is now has been extended to June 30th, 2020.
2. Tax saving investments/ payments / donation
Specified investment/payments (such as investments in the Public Provident Fund, life insurance payments, etc.) or donations to use income deductions for the 2019-20 financial years had to be made until March 31, 2020. yeyeNow these investments/payments may be made up to 30 June 2020 to avail income deductions for the Financial year 2019-20.
Similarly, exemptions from Long Term Capital Gains are available if such investments are made within the specified period from the day the capital asset is transferred. Now any such investment which is due from 20 March 2020 to 29 June 2020 can be made up to 30 June 2020, subject to certain conditions specified in the 1961 Income Tax Act (‘the Act’).
3. Aadhaar-PAN linking
By 31 March 2020 Aadhaar was to be linked to PAN. Else, this would have been inoperative for PAN. The due date for linking Aadhaar and PAN has now been extended until 30 June 2020.
4. Reduction of rate of interest on delayed payment of tax:
Any tax that is due to be paid in between 20 March and 29 June under the act, such taxes can be paid by 30th June 2020, then the interest on late payment of such taxes will be imposed at 0.75% per month (or part of the month) instead of 1% per month (or part of the month)
Few examples of tax payments through which people may make use of this advantage are:
- Taxes Deducted at source (TDS), that are due from 20 March to 29 June;
- First installment of advance tax due for FY 2020-21 by 15 June 2020;
5. Lower / Nil withholding certificates:
An individual is required to obtain a tax withholding tax certificate on a certain income at a lower or NIL rate from the tax authorities. The certificate must be obtained by applying to the tax department at the beginning of each financial year.
In view of the current situation, the certificates held for FY 2019-20 shall be valid till 30th June 2020 until the new certificate for FY 2020-21 has been granted by the tax department. If a taxpayer has not yet filed an application for FY 2020-21, he is expected to file the same application at the earliest possible date with the help of the modified online process and by e-mail to the concerned assessing officer.
The tax officers are ordered to dispose by 27 April 2020 of all the pending application of lower deduction for FY 2019-20. The applicant is required to inform the concerned tax officer about the pendency of the application to vide e-mail and the concerned officer shall communicate the vide e-mail to the person on acceptance / rejection.
The valid Form 15 G and Form 15H submitted for lower or nil interest / income deduction to banks or financial institutions for FY 2019-20 will remain valid until 30 June 2020.
6. Withdrawal from Provident Fund (PF)
Withdrawal from PF is limited to employees while in service. However Employees Provident Fund Organization (EPFO) has allowed employess to get a non-refundable advance from their existing PF balances while in service. The advance amount shall be lower than the Standard and Dearness Allowances of 3 months, or 75 percent of the PF account balance. It is also explained that this amount being advace will not be taxable.
7. Issue of refund
In a press release on 8 April 2020, it was reported that all pending income-tax refunds up to Rs.5 lakh will be issued immediately to provide immediate relief to businesses and individuals.
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