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


Comments

Post a Comment

Popular posts from this blog

Significance of Financial Controller in your Business

Image
  Significance of Financial Controller in your Business We come across this terminology of “Financial Controller” many a times across business enterprises, however the average businessman doesn’t have a clear understanding of what financial controllers can do for their business and how can they a significant part in the success of their venture.   For anyone owning or managing a growing business and not having a financial controller, should read this article and understand how important it is to consider evaluating the need of one for their business. In this article, we shall explain the job of a financial controller, how they differentiate from CFOs, why are they needed, and when should a business be eligible to hire the services of one.   Job of a Controller: Accounting and Bookkeeping functions in every growing business typically benefit substantially when they are supervised and guided by an expert finance professional.   CPA/Chartered Accountants are such professionals w
Read more

Tax on Cryptocurrency gains – Unlocking the Mystery

Image
  Tax on Cryptocurrency gains – Unlocking the Mystery   The first Cryptocurrency – Bitcoin was introduced more than a decade ago in 2009 by the so-called father of bitcoin – Satoshi Nakamoto, and since then there has been a flux of cryptocurrencies getting introduced from time to time. Bitcoin and several other rival cryptocurrencies like Litecoin, Ethereum, Ripple, Dogecoin etc. have experienced path breaking growth in the recent years, leading to lot of complexities into the accounting of such currencies and their tax implications globally.   To any first-time reader here, Cryptocurrency is digital currency that uses encryption techniques, rather than a central bank, to generate, exchange, and transfer units of currency. Unlike cash transactions, no bank or government authority regulates these forms of currency or verifies the transfer of funds. Instead, these virtual transactions are recorded in a digitized public ledger called a “blockchain.” Individual units of the currency are
Read more

The NRI Series – NRI Obligations, Incomes & Deductions

The NRI Series – NRI Obligations, Incomes & Deductions In our first article of the NRI Series ( https://gjmco.blogspot.com/2018/11/the-nri-series-understanding-nri-status.html ) we discussed about NRI Status and Scenarios when the NRI incomes can be liable to taxes in India.   In this second article we shall discuss the various types of income and deductions NRIs’ are eligible to.   But before we move further let’s revise upon the NRI Status & their taxability from the previous article briefly: NRI Status: You are considered an Indian resident for a financial year: (i.) When you are in India for at least 6 months (182 days to be exact) during the financial year (ii.) You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years. If you are an Indian citizen working abroad or a member of a crew on an Indian ship, only the first condition is available to you – which means you are a resid
Read more