The Ministry of Finance brought in the ‘Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020’ to give effect to the relief measures pertaining to statutory and regulatory compliance announced on March 24. This provides for the extension of time limits under the Taxation and Benami Acts. For instance, the date of filing Income Tax returns, Aadhar-PAN linking and the ‘Vivad se Vishwas’ scheme has been extended until June 30, 2020.
Moreover, the ordinance has amended the Income Tax Act to ensure that the same tax treatment is provided to PM CARES as available to the Prime Minister National Relief Fund. This implies that the donation made to PM CARES fund will be eligible for a 100% deduction under the Income Tax Act. Additionally, the limit on the deduction of 10% of gross income shall not be applicable for donation made to PM CARES fund.
Some amendments deal specifically with indirect taxes. The last date of furnishing Central Excise returns, filing of appeal or refund applications and availing benefit under the Sabka Vishwas scheme has been extended till June 30, 2020. Also, an enabling section has been inserted in the CGST Act, 2017, via which the Centre can extend due dates for various compliances, including statement of outward supplies, filing appeals etc.