COVID-19 Relief Measures in Income Tax

On 24th March 2020, the Union Finance Minister announced several measures taken by the Government of India in view of the COVID-19 outbreak and nationwide lockdown. The relief measures related to Income tax are detailed below.

COVID-19 Relief measures related to Income Tax:
  1. Extension of last date for Belated/Revised Income Tax Returns for FY 18-19 from 31st March 2020 to 30th June 2020.
  2. Aadhaar-PAN linking date extended from 31st March 2020 to 30th June 2020.
  3. Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020.
  4.  Due dates for issue  of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority extended till 30th June, where the time limit is expiring between 20th March 2020  to 29th June 2020.
  5. Due date for any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law shall be extended to 30th June 2020.  
  6. Payment of advance tax, self-assessment tax, TDS, TCS, STT, CTT, Equalisation levy for the month of March, April, May 2020 and payment to be made up to 30th June 2020 shall attract reduced interest rate at 9%   instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month).  No late fee/penalty shall be charged, if paid up to 30th June 2020.
  7. Commencement of operations for SEZ units for claiming deduction u/s 10AA which received approvals by 31st March 2020 has been extended to 30th June 2020.

The Government has taken a pro-active approach in dealing with the situation by coming up with these relief measures and easing out the compliance burden, which is a much needed relief in the middle of the crisis that the world is facing currently.

Nikita Bhatia
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