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:-

  • CBDT to Display Foreign Assets & Overseas Income in AIS and Form 26AS
    CBDT to Display Foreign Assets & Overseas Income in AIS and Form 26AS On 8 July 2026, the Central Board of Direct Taxes (CBDT) issued a landmark directive (Order F.No. 225/73/2025-ITA-II) making foreign financial information significantly more transparent. Under this order, information received by India from foreign tax jurisdictions will now […]
  • ITR-1 vs ITR-2 vs ITR-4 for AY 2026-27: How to Choose the Right Income Tax Return Form
    ITR-1 vs ITR-2 vs ITR-4 for AY 2026-27: How to Choose the Right Income Tax Return Form Filing your Income Tax Return (ITR) begins with one critical decision—selecting the correct return form. While it may seem like a minor step, choosing the wrong form can result in your return being treated […]
  • Who Qualifies as a Relative Under the Income-tax Act, 1961?
    Who Qualifies as a Relative Under the Income-tax Act, 1961? The term “relative” may appear straightforward, but under the Income-tax Act, 1961, it does not have a single universal definition. Instead, its meaning changes depending on the section and the purpose for which it is used. This distinction is important because […]
  • GST at 9: Nine Years of India’s Biggest Tax Reform – Achievements, Challenges & The Road Ahead
    GST @ 9: Nine Years of Transformation, Challenges, and the Future of India’s Indirect Tax System From “One Nation, One Tax” to AI-driven tax administration, GST has transformed India’s indirect tax landscape over the last nine years. While the reform has simplified taxation and strengthened compliance, businesses continue to grapple with […]
  • Penalties and Prosecution Under the Income-tax Act, 1961: A Complete Guide for Taxpayers (AY 2026-27)
    Penalties and Prosecution Under the Income-tax Act, 1961: A Complete Guide for Taxpayers (AY 2026-27) Tax compliance is one of the most important responsibilities of every taxpayer in India. The Income-tax Act, 1961 not only prescribes procedures for filing returns and paying taxes but also contains strict provisions for penalties and […]

Deadline for Extended GST Annual Returns

Tax professionals from Gujarat have kept in touch with central and state governments that it is not possible to file GSTR-9, the yearly return of GST inside the set due date of June 30 thus the due date for filing the return ought to be extended. There are near 6.7 lakh enlisted traders in Gujarat, of which just a bunch of them have documented returns and the rest are not ready to filr returns as the auto-computation prompts mistaken sections, prompting over taxation of the dealers. While the form has an arrangement to build the tax liability, there is no arrangement for correction if a businessmen need to profit tax refund, which he neglected to before.

In a letter to finance minister Nirmala Sitharaman and also to experts of Central GST (CGST) and State GST (SGST), Gujarat Sales Tax Bar Association said that the utility for filing of the return was accessible pretty much a month prior and it isn’t possible for the businessmen or the tax professionals to get used to it. GSTBA president Urvish Patel revealed to DNA that the yearly returns get sustains from past returns filed by the purchaser and the seller. In case of mismatch, there will be blunder in filing of returns. “Businesses are concerned. They will finish up settling considerably more government tax than what they are required to. There is an unfair provision that a businessmen are not able to claim the Input Tax Credit (ITC), which they didn’t guarantee on prior event, yet there is an arrangement of paying tax if the credit has been falsely claimed before,” said Patel.

Tax professionals said that as a result of these inconveniences, just a little part of the businesses have filed their yearly return. There are near 6.7 lakh sellers in the state who have been enlisted under GST, however just around 2-3 percent of them have filed their returns, whose due date finishes on Jun 30. A senior authority in SGST division likewise admitted that very few annual returns have been filed up until now. Considering comparative circumstance in the past since the roll out of GST, he doesn’t rule out extension of due date for filing returns.

Former president of GSTBA, Varis Isani said that under the present organization there are high chances of making mistake while filing the return. “In spite of cases of the legislature that the returns are simple, they are in certainty very complicated. Additionally, there are no arrangements for correction or update,” he said. Unless proper reconciliation is affected, it could be an issue for stretched out litigation later-on to the un-accommodated returns or potentially qualified Audit Reports by auditors if proceeded as it were, said the letter.

Former president of GSTBA, Varis Isani said that under the present format there are high chances of making error while filing the return. “Contrary to claims of the government that the returns are simple, they are in fact very complicated. Moreover, there are no provisions for rectification or revision,” he said. Unless proper reconciliation is effected, it could be a matter for extended litigation later-on to the un-reconciled returns and/or qualified Audit Reports by auditors if proceeded as it were, said the letter.

Tax PRACTIONERS IRKED

Impractical to file GSTR-9 inside set due date, they say

  • June 30 – Deadline for yearly return closes
  • 6.7 lakh – Close to 6.7 lakh returns to be filed in the state
  • Evaluated 3% returns filed so far in the state
  • Experts fear litigations, if erroneous returns filed

 

Contact Certicom for further details.

Details on New GST return system (For taxpayers)

The government has divulged a transition plan for taxpayers under the goods and services tax to change to new simpler return forms. So as to facilitate the transition procedure, between July-September the new form would be accessible on trial basis for familiarisation.

The GST Council in its 31st gathering had chosen that another GST return system will be presented for taxpayers.

The Goods and Services Tax Network had shared a model of the offline tool in May, 2019, an official explanation said on Tuesday. The look and feel of the offline tool would be same as that of the online portal.

There are three primary segments to the new return – one principle return (FORM GST RET-1)and two annexures (FORM GST ANX-1 and FORM GST ANX-2).

From July, 2019, clients would almost certainly upload invoices utilizing the FORM GST ANX-1 offline tool on preliminary reason for acquaintance. They would likewise have the option to see and download, the internal supply of invoices utilizing the FORM GST ANX-2 offline tool under the trial program.

The summary of internal supply invoices would likewise be accessible for view on the basic entryway online. They would likewise have the option to import their buy register in the disconnected instrument and match it with the downloaded internal supply solicitations to discover bungles from August 2019.

Between July to September, 2019 for a quarter of a year, the new return framework (ANX-1 and ANX-2 just) would be accessible for preliminary for taxpayers to make themselves recognizable, the announcement said.

This trial would have no effect at the back end on the tax liability or input tax credit  of the taxpayers, the announcement included.

In this period, taxpayers will keep on satisfying their compliances by recording FORM GSTR-1 and FORM GSTR-3B for example taxpayers would keep on documenting their outward supply subtleties in FORM GSTR-1 on month to month or quarterly premise and return in FORM GSTR-3B on monthly premise. Non-documenting of these returns will draw in penal provisions under the GST Act, it said.

From October, 2019 onwards, FORM GST ANX-1 will be necessary and FORM GSTR-1would be replaced by FORM GST ANX-1.

Large taxpayers, with aggregate turnover over Rs 5 crore in the past financial year, would upload their monthly FORM GST ANX-1 from October, 2019 onwards.

Invoices can be uploaded in FORM GST ANX-1 consistently both by larke and small tax payers from October, 2019 onwards, it said.

Form GST ANX-2may be seen all the while during this period however no action will be allowed on such FORM GST ANX-2, the announcement said.

For October and November, 2019, large tax payers would keep on documenting FORM GSTR-3B on monthly basis. They would file their first FORM GST RET-01 for the period of December, 2019 by twentieth January, 2020.

The small tax payers would quit recording FORM GSTR-3B and would begin filing FORM GST PMT-08 from October, 2019 onwards. They would file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 from twentieth January, 2020. From January, 2020 onwards, all tax payers will be filing FORM GST RET-01 and FORM GSTR-3B will be totally eliminated, the announcement said. The government will issue separate instructions for filing and processing of discount applications between October to December, 2019.

For detailed info, please get in touch with Certicom Consulting.