Government notifies Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020.

The Ministry of Law and Justice vide its gazette Notification dated 31st March 2020 has published the Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020, which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the Rules or Notification which are prescribed/ issued under these Acts.

Some of the important features and time limits which get extended by this Ordinance are as under:-

The Ordinance provides relaxation of certain provisions of specified Act.

  1. Time limit for filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record under specified Act which is due during the period from the 20th day of March, 2020 to the 29th day of June, 2020 has been extended to the 30th day of June, 2020, or such other date after the 30th day of June, 2020, as may be notified by Central Government.
  2. The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.
  3. The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.
  4. The date for passing of order or issuance of notice by the authorities under various direct taxes & Benami Law has also been extended to 30.06.2020
  5. Donation made up to June 30 to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act from income of FY 2019-20
  6. Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment.
  7. The last date of furnishing of the Central Excise returns due in March, April and May 2020 has been extended to 30th June, 2020.
  8. Wherever the last date for filing of appeal etc., relating to Service Tax is from 20th March 2020 to 29th June 2020, the same has been extended to 30th June 2020.

The term Specified Act in the ordinance includes the following Acts

  • The Wealth-tax Act, 1957.
  • The Income-tax Act, 1961.
  • The Prohibition of Benami Property Transactions Act, 1988.
  • Chapter VII of the Finance (No. 2) Act, 2004.
  • Chapter VII of the Finance Act, 2013.
  • The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
  • Chapter VIII of the Finance Act, 2016 or
  • The Direct Tax Vivad se Vishwas Act, 2020

Click here to read the Notification.