Covid-19 - Clarifications on Relief Measures


Covid-19 – Clarification on Relief Measures

Since the Finance Minister’s announcement of tax and compliance relief measures for India amidst the Covid-19 outbreak on March 24, 2020, we have received numerous queries on some of the implications of the announcement.  Some of the implications were unclear for the week thereafter, since we only had the press release until March 30, 2020.   But the apprehensions and queries have been laid to rest by the promulgation of THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020 on March 31, 2020 as announced by the Government.  So without detailing the ordinance once again, we shall only address the clarifications over the implications of certain tax and compliance relief measures in this article:

1.     The deadline for filing of Income tax return for ALL assessees for FY 2018-19, has been extended up to June 30, 2020.
2.     The deadline for FY 2019-20 for making tax investment as well as payments for claiming deductions under Chapter VIA-B of the Income tax act i.e. Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G to GGC (Donations/Contributions etc.) all stand extended up to June 30, 2020.  So even if you make transfer funds towards above investments or payments after March 31, 2020, but before June 30, 2020, you shall be eligible to get tax exemption for the same for FY 2019-20.
3.     Last date of furnishing central excise returns due in March, April and May 2020 have been extended to June 30, 2020.
4.     Passing of Orders or issuance of notices by authorities under various direct taxes and Benami Laws including Vivad se Vishwas scheme, all extended by 3 months till June end.
5.     A reduced rate of 9% p.a. interest shall be charged for non-payment of income tax (advance tax, TDS, TCS), equalization levy, securities transactions tax and commodities transactions tax, which are due for payment from March 20, 2020 to June 29, 2020 this year.
6.     Contributions to PM CARES Fund towards Covid-19 relief for people affected by the pandemic, will be eligible for 100% rebate even if paid up to June 30, 2020 and exemption can be claimed for FY 2019-20.
7.     There is no change in the Financial Year 2019-2020.  It has not been extended beyond March 31, 2020 and remains the same.
8.     While filing income tax returns for FY 2019-20, only income up to March 31, 2020 shall be included and not up till June 30, 2020.
9.     The due dates of your respective LIC policy premiums or Mediclaim premium has not been extended.  The same needs to be checked specifically with your insurance provider, whether they have provided grace period for payment of premiums falling due in the month of March 2020.
10.  Interest on Housing loans as accrued up to March 31, 2020 will only be eligible for deduction in FY 2019-20, irrespective of the fact as to when the same has been paid under Housing EMIs up to March 2020.

We have attempted to address only queries that have been raised before us in the last one week since the announcements.  If you have any specific queries, please feel free to write to gaurav@gjmco.in.

Thanks & Best regards,
Knowledge Base team
GJM & Co.
Chartered Accountants
www.gjmco.in


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