Covid-19: Tax Relief measures for individual Taxpayers

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.

tax due dates

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’).

adhaar pan linking

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.

Latest Updates:-

  • Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting
    Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting As India continues to strengthen its indirect tax framework, several important changes under the Goods and Services Tax (GST) regime have been introduced, effective from April 1, 2025, and beyond. These reforms are aimed at enhancing ease […]
  • Tax Implications of ESOPs and RSUs for Employees
    Tax Implications of ESOPs and RSUs for Employees Employee Stock Option Plans (ESOPs) and Restricted Stock Units (RSUs) have become increasingly popular as part of employee compensation packages, especially in multinational corporations and startups. These instruments are not just used to reward performance but are key tools in retaining talent. However, […]
  • ITR Filing Deadline Extended: New Last Date is September 15
    ITR Filing Deadline Extended: New Last Date is September 15 The deadline for filing income tax returns for FY 2024–25 (AY 2025–26) was moved from July 31 to September 15 by the Income Tax Department on Tuesday. “Considering the time needed for system readiness and the rollout of Income Tax Return (ITR) utilities […]
  • ITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing Portal
    ITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing Portal As the Income Tax Return (ITR) Filing Season 2025 draws near, it’s time for taxpayers—especially first-time filers—to get ready by registering on the official Income Tax e-Filing Portal. Designed as a Mission Mode Project under the National E-Governance […]
  • Why Reconciling AIS and TIS is Crucial Before Filing ITR
    Why Reconciling AIS and TIS is Crucial Before Filing ITR As Income Tax Return (ITR) season kicks off, many taxpayers are discovering two critical tools on the Income Tax portal — AIS (Annual Information Statement) and TIS (Taxpayer Information Summary). If you’re still relying only on Form 26AS to prepare your […]