1. Which due dates have been extended due to COVID 19 lockdown?

• The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020 has extended the following due dates: (Also refer CBDT Press Release dated 31st March 2020, 24th March 2020 and Announcement made by Hon'ble Finance Minister on 13th May 2020)
• Last date for furnishing original or revised Return of income for asst year 2019-20 has been extended to 30 June 2020 from 31 March 2020.
• Due date of furnishing Return of income for all assessees for asst year 2020-21 has been extended to 30 November 2020 in place of 31 July and 31 October 2020.
• Due date of furnishing Tax audit report or other audit report extended to 31 October 2020 from 30 September 2020.
• Due date of completion of assessment which were expiring on 30 September 2020 has been extended to 31 December 2020.
• Due date for completion of assessment which were expiring on 31 March 2021 has been extended to 30 September 2021.
• Last date for linking PAN with Aadhaar-PAN has been extended to 30 June 2020 from 31 March 2020.
• The date for making various investment/deposit/payment or such other action, by whatever name called, for claiming deduction under Chapter-VIA-B of the Income tax Act (i.e. sec 80C to sec 80GGC) which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. which were required to be executed from 20 March 2020 to 29 June 2020 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.
• The date for making investment, deposit, payment, acquisition, construction, purchase or such other action by whatever name called for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the Income tax Act which were required to be executed from 20 March 2020 to 29 June 2020 has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.
• The date for making investment, deposit, payment, acquisition, construction, purchase or such other action by whatever name called for the purpose of claiming any deduction, exemption or allowance under the provisions of Income Tax Act which were required to be executed from 20 March 2020 to 29 June 2020 has been extended to 30th June 2020.
• The date for beginning of manufacture or production of article or thing or providing any services referred to in sec 10AA (commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the Income tax Act) has been extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.
• Completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action by whatever name called by any authority, commission or tribunal under the provisions of Specified Acts (various direct taxes & Benami Law) which were required to be completed from 20 March 2020 to 29 June 2020 has been extended to 30.06.2020 or any further date as may be notified by the Central Government.
• Filing of appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of Specified Acts (various Direct taxes & Benami Law) which were required to be complied with from 20 March 2020 to 29 June 2020 has been extended to 30.06.2020 or any further date as may be notified by the Central Government.
• Reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS), Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.
• Under Vivad se Vishwas Scheme, the date has been extended up to 31.12.2020. Hence, declaration and payment under the Scheme can be made up to 31.12.2020 without additional payment.

For the above purposes, Specified Act means 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.

 

2. What deduction is allowable for making donation to PM CARES fund?

 A special fund "Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)" has been set up for providing relief to the persons affected from the outbreak of Corona virus. The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund. Therefore, the donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the Income-tax Act. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund.

As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can make donation to PM CARES Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax as per concessional taxation regime for income of FY 2020-21.

 

3. What relaxation has been provided with regard to for rate of TDS and TCS from 14 May 2020 to 31 March 2021?

 W.e.f. 14 May 2020 to 31 March 2021, the rates of TDS and TCS in the undermentioned sections have been reduced to 75% of the prescribed rates. the relaxation provided applies most of the TDS and TCS cases other than TDS on salary and TDS on payments to non residents due to the Covid 19 Pandemic. Refer Press release dated 13 May 2020

Tax Deduction at Source (TDS)

S. No	Section of the Income-tax Act	Nature of Payment	Existing Rate of TDS Upto 13/05/2020	Reduced rate from 14/05/2020to 31/03/2021
1.	193	Interest on Securities	10%	7.5%
2.	194	Dividend	10%	7.5%
3.	l94A	Interest other than interest on securities	10%	7.5%
4.	194C	Payment to Contractors and sub-contractors	1% (individua1 / HU F) 2% (others)	0.75% (individual / HUF) 1.5%(others)
5.	194D	Insurance Commission	5%	3.75%
6.	194DA	Payment in respect of life insurance policy	5%	3.75%
7.	194EE	Payments in respect of deposits under National Savings Scheme	10%	7.5%
8.	194F	Payments on account of re-purchase of Units by Mutual Funds or UTI	20%	15%
9.	l94G	Commission, prize etc., on sale of lottery tickets	5%	3.75%
10.	194H	Commission or brokerage	5%	3.75%
11.	194-I(a)	Rent for plant and machinery	2%	1 .5%
12.	194-I(b)	Rent for immovable property	10 %	7.5%
13.	194-IA	Payment for acquisition of immovable property	1 %	0.75%
14.	194-IB	Payment of rent by individual or HUF	5%	3.75%
15.	194-IC	Payment for Joint Development Agreements	10%	7.5%
16.	194J	Fee for Professional or Technical Services (FTS), Royalty, etc.	2% (FTS, certain royalties, call centre) 10% (others)	1.5% (FTS, certain royalties, call centre) 7.5% (others)
17.	l94K	Payment of dividend by Mutual Funds	10%	7.5%
18.	194LA	Payment of Compensation on acquisition of immovable property	10%	7.5%
19.	194LBA(1)	Payment of income by Business trust	10%	7.5%
20.	194LBB(i)	Fee for income by investment fund	10%	7.5%
21	l94LBC(1)	Income by securitization trust	25% (Individual / HUF) 30% (Others)	18.75% (Individual/ HUF) 22.5% (Others)
22	194M	Payment of Commission, brokerage, etc. by Individual and HUF	5%	3.75%
23	194 O	TDS on e-commerce participants	1% (w.e.f. 1.10.2020)	0.75%

 

Tax Collection at Source TCS)

S. No	Section of the Income- tax Act	Nature of Receipts	Existing Rate of TCS	Reduced rate from 14/05/2020 to 31/03/2021
1.	206C(1)	Sale of
		(a) Tendu Leaves	5%	3.75%
		(b)Timber obtained under a forest lease	2.5%	1.875%
		(c) timber obtained by any other Mode	2.5%	1.875%
		(d) Any other forest produce not being timber/tendu leaves	2.5%	1.875%
		(e) scrap	1%	0.75%
		(f) Minerals, being coal or lignite or iron ore	1%	0.75%
2.	206C(1C)	Grant of license, lease, etc. of
		(a) Parking lot	2%	1.5%
		(b) Toll Plaza	2%	1.5%
		(c) Mining and quarrying	2%	1.5%
3.	206C(IF)	Sale of motor vehicle above 10 Lakhs	1%	0.75%
4.	206C(1H)	Sale of any other goods	0.1% (w.e.f. 01.10.2020)	0.075%

 

4. Whether lower or NIL tax deduction/collection certificate valid till 31 March 2020 can be used after 31 March 2020?

 CBDT has issued three orders vide F.No.275/25/2020-IT(B) dated 31 March 2020, 3 April 2020 and 9 April 2020 for the purpose of extending the validity of certificates for lower/nil deduction issued for FY 2019-20 or where the application for lower/nil deduction of tax is pending. The salient features of the same are as under:-

• All assessees who have filed application for lower/nil deduction on TRACES portal for FY 2020-21 and whose applications are pending disposal as on date and they have been issued such certificate for FY 2019-20 then such certificate would be applicable till 30.6.2020 or disposal of their application by the AO. The lower/nil deduction certificate shall be valid only for the TAN for which it is issued.
• Where assessees who could not apply for lower/nil deduction on TRACES portal for FY 2020-21 but were having certificates for FY 2019-20, such certificate will be applicable till 30.6.2020. However they need to apply at the earliest to the AO in the prescribed manner.
• Where assessee has not applied for lower/nil deduction on TRACES portal for FY 2020-21 and were not having certificates for FY 2019-20, a modified email application procedure has been prescribed.
• Payments to non-residents having permanent establishment in India and not having lower/nil deduction certificate for FY 2019-20, tax on payments made will be deducted at 10% (including surcharge and cess) on payments till 30.6.2020 or disposal of application whichever is earlier.

With reference to the above, CBDT has further clarified that where the certificate for FY 2019-20 was applicable for a specific period and not for entire year (for example 1 October 2019 to 15 December 2019), the same shall also valid from 1.4.2020 to 30.6.2020 subject to conditions mentioned above.Further for all assessees whose application for lower/nil deduction for FY 2019-20 is pending on 3 April 2020, are required to intimate the AO through prescribed e-mail procedure and such applications will be disposed on or before 27 April 2020.

Where the lower/nil deduction certificate has been extended till 30.6.2020, the threshold limit will be same and applied afresh for 1.4.2020 to 30.6.2020

It has also been clarified that where assessee desires to have a certificate for a new TAN or at a rate lower than that granted, a fresh application shall be required.

 

5. Where non resident having PE in India made an application for lower deduction of tax at 15% for FY 2020-21 which is pending, can assessee on the basis of CBDT claim lower rate of deduction at 10%?

As per clause 2(d) of CBDT Order dated 31.3.2020, the applicant is entitled to lower rate of deduction of 10% till its application is disposed off or 30.6.2020, whichever is earlier. It is immaterial that it had asked a concessional rate of 15%.

 

6. Whether it is necessary that quantum mentioned in the low/nil deduction certificate should not be fully exhausted for extending the validity of the certificate to 30 June 2020?

There is no such condition. Certificate issued for FY 2019-20 shall be extended till 30 June 2020 even if the threshold limit mentioned in the certificate is fully exhausted in FY 2019-20. It has also been clarified that the threshold limit shall start afresh.

 

7. Where certificate for lower/nil deduction has been granted for FY 2019-20 and no application for FY 2020-21 could be made, is extension upto 30 June, 2020 automatic or email application in prescribed form is to be made?

 As per para 2(b) of CBDT Order dated 31.3.2020, validity of certificate of FY 2019-20 is extended to 30 June 2020. However, assessee is required to provide the details of transactions and the deductor as per prescribed e-mail procedure at the earliest as soon as normalcy is restored or by 30 June 2020, whichever is earlier. It is suggested that assessee should make the application over e-mail at the earliest.

 

8. Whether certificates for FY 2019-20 stands renewed with the same threshold amount for FY 2020-21?

 Yes. Certificate of FY 2019-20 will be renewed for the same amount, same transaction and same deductor, but shall be valid upto 30 June 2020 and not for the whole FY 2020-21.

 

9. In FY 2019-20, TDS rate for fees for technical services was 10% and assessee received a lower deduction certificate of 5%. For the FY 2020-21, due to amendment in the Act, the TDS rate is 2% on fees for technical services. Can assessee ask the deductor to deduction tax at 1% on the basis of 50% concessional rate mentioned in the certificate?

 Assessee does not have option of concession of lower tax deduction in this case. It has to get its tax deducted at 2% only, unless a new certificate granting a rate lower than 2 per cent is issued.

 

10. Whether Form 15G or 15H submitted for FY 2019-20 will be applicable till 30 June 2020?

Where assessee had furnished Form 15G or Form 15H for non deduction of TDS for FY 2019-20, the same shall be valid till 30 June 2020. Refer Circular F. NO. 275/25/2020-IT(B), Dated 3-4-2020.

 

11. What relaxation has been given for determining residential status for FY 2019-20?

CBDT vide Circular No. 11 of 2020 dated 8 May 2020 has provided the following relaxation for residential status for FY 2019-20:

• An individual who has come to India on a visit before 22 March 2020 and has been unable to leave India on or before 31 March 2020, his period of stay in India from 22 March 2020 to 31 March 2020 shall not be taken into account
• An individual who has come to India on a visit before 22 March 2020 and has been quarantined in India on account of Novel Corona virus (Covid 19) on or after 1 March 2020 and has departed on an evacuation flight on or before 31 March 2020, his period of stay from the beginning of his quarantine to his date of departure or 31 March 2020, as the case may be, shall not be taken into account
• An individual who has come to India on a visit before 22 March 2020 and has departed on an evacuation flight on or before 31 March 2020, his period of stay in India from 22 March 2020 to his date of departure shall not be taken into account.

12. Whether due date for making renewal application for the existing registration/approval under sections 10(23C), 12AA, 35 and 80G is extended to 31 December 2020?

All charitable trust, institutions, educational or medical institution, research associations who are registered or approved under sections 10(23C), 12AA, 35 and 80G were required to make online application for renewal of their registration/approval on or before 31 August 2020. In view of the Covid 19 pandemic the date has been extended to 31 December 2020. Refer Press Release dated 9 May 2020.

 

13. Whether the new procedure for registration/approval under section 12AB, 10(23C), 35 or 80G will apply from 1 June 2020?

The new procedure for registration/approval under sections 12AB, 10(23C), 35 or 80G, which was applicable from 1 June 2020 shall now be applicable from 1 October 2020. Press Release dated 9 May 2020.

 

14. Can Income tax department initiate proceedings which adversely effect assessee during Covid 19 pandemic period?

CBDT has released Interim Action Plan for first quarter of FY 2020-21. It emphasizes that "no communication with the assessee having adverse effect on him / her is to be done during this period till fresh guidelines" are issued by the Board.

 

15. What Ordinance has been issued for extending dates under various Acts?

The Ordinance dated 31 March 2020 for extending the due dates under different Acts is reproduced below:

 

16. THE TAXATION AND OTHER LAWS (RELAXATION OF CERTAIN PROVISIONS) ORDINANCE, 2020 (No. 2 OF 2020)

Promulgated by the President in the Seventy-first Year of the Republic of India.

An Ordinance to provide relaxation in the provisions of certain Acts and for matters connected therewith or incidental thereto.

WHEREAS, in view of the spread of pandemic COVID-19 across many countries of the world including India, causing immense loss to the lives of people, it has become imperative to relax certain provisions, including extension of time limit, in the taxation and other laws;

AND WHEREAS, Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: –

 

CHAPTER I

PRELIMINARY

1. Short title and commencement.

(1) This Ordinance may be called the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020.

(2) Save as otherwise provided, it shall come into force at once.

 

2. Definitions.

(1) In this Ordinance, unless the context otherwise requires,

(a) "specified Act" means

1. the Wealth-tax Act, 1957;
2. the Income-tax Act, 1961:
3. the Prohibition of Benami Property Transactions Act, 1988;
4. Chapter VII of the Finance (No. 2) Act, 2004;
5. Chapter VII of the Finance Act, 2013;
6. the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015;
7. Chapter VIII of the Finance Act, 2016; or
8. the Direct Tax Vivad se Vishwas Act, 2020;

(b) "notification" means the notification published in the Official Gazette.

(2) The words and expressions used herein and not defined, but defined in the specified Act, the Central Excise Act,1944, the Customs Act, 1962, the Customs Tariff Act,1975 or the Finance Act,1994, as the case may be, shall have the meaning respectively assigned to them in that Act.

 

3. CHAPTER II

RELAXATION OF CERTAIN PROVISIONS OF SPECIFIED ACT

Relaxation of certain provisions of specified Act.

(1) Where, any time limit has been specified in, or prescribed or notified under, the specified Act which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 or such other date after the 29th day of June, 2020 as the Central Government may, by notification, specify in this behalf, for the completion or compliance of such action as

• completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the specified Act; or
• filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the specified Act; or
• in case where the specified Act is the Income-tax Act, 1961,
• making of investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purposes of claiming any deduction, exemption or allowance under the provisions contained in
• sections 54 to 54GB or under any provisions of Chapter VI-A under the heading "B.—Deductions in respect of certain payments" thereof; or
• such other provisions of that Act, subject to fulfilment of such conditions, as the Central Government may, by notification, specify; or
• beginning of manufacture or production of articles or things or providing any services referred to in section 10AA of that Act, in a case where the letter of approval, required to be issued in accordance with the provisions of the Special Economic Zones Act, 2005, has been issued on or before the 31st day of March, 2020,

Provided that the Central Government may specify different dates for completion or compliance of different actions.and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action shall, notwithstanding anything contained in the specified Act, stand extended to the 30th day of June, 2020, or such other date after the 30th day of June, 2020, as the Central Government may, by notification, specify in this behalf:

Provided further that such action shall not include payment of any amount as is referred to in sub-section (2).

(2) Where any due date has been specified in, or prescribed or notified under, the specified Act for payment of any amount towards tax or levy, by whatever name called, which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 or such other date after the 29th day of June, 2020 as the Central Government may, by notification, specify in this behalf, and such amount has not been paid within such date, but has been paid on or before the 30th day of June, 2020, or such other date after the 30th day of June, 2020 as the Central Government may, by notification, specify in this behalf, then, notwithstanding anything contained in the specified Act,

(a) the rate of interest payable, if any, in respect of such amount for the period of delay shall not exceed three-fourth per cent. for every month or part thereof;

(b) No penalty shall be levied and no prosecution shall be sanctioned in respect of such amount for the period of delay.

Explanation. – For the purposes of this sub-section, "the period of delay" means the period between the due date and the date on which the amount has been paid.

4. CHAPTER III

AMENDMENT TO THE INCOME-TAX ACT, 1961

Amendment of sections 10 and 80G of Act 43 of 1961.

In the Income-tax Act, 1961, with effect from the 1st day of April, 2020,

(i)  in section 10, in clause (23C), in sub-clause (i), after the word "Fund", the words and brackets "or the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)" shall be inserted;

(ii) in section 80G, in sub-section (2), in clause (a), in sub-clause (iiia), after the word "Fund", the words and brackets "or the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)" shall be inserted.

AMENDMENTS TO THE DIRECT TAX VIVAD SE VISHWAS ACT, 20205. CHAPTER IV

Amendment of section 3 of Act 3 of 2020.

In section 3 of the Direct Tax Vivad Se Vishwas Act, 2020,

(a) in third column, in the heading, for the figures, letters and words "31st day of March, 2020", the figures, letters and words "30th day of June, 2020″shall be substituted;

(b) in fourth column, in the heading, for the figures, letters and words "1st day of April, 2020", the figures, letters and words "1st day of July, 2020" shall be substituted.

 

6. CHAPTER V

RELAXATION OF TIME LIMIT UNDER CERTAIN INDIRECT TAX LAWS

Relaxation of time limit under Central Excise Act, 1944, Customs Act, 1962, Customs Tariff Act, 1975 and Finance Act, 1994.

Notwithstanding anything contained in the Central Excise Act,1944, the Customs Act, 1962 (except sections 30, 30A, 41, 41A, 46 and 47), the Customs Tariff Act, 1975 or Chapter V of the Finance Act,1994, as it stood prior to its omission vide section 173 of the Central Goods and Service Tax Act, 2017 with effect from the 1st day of July,2017, the time limit specified in, or prescribed or notified under, the said Acts which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 or such other date after the 29th day of June, 2020 as the Central Government may, by notification, specify, for the completion or compliance of such action as

(a) completion of any proceeding or issuance of any order, notice, intimation, notification or sanction or approval, by whatever name called, by any authority, commission, tribunal, by whatever name called; or

(b) filing of any appeal, reply or application or furnishing of any report, document, return or statement, by whatever name called,

hall, notwithstanding that completion or compliance of such action has not been made within such time, stand extended to the 30th day of June, 2020 or such other date after the 30th day of June, 2020 as the Central Government may, by notification, specify in this behalf:

Provided that the Central Government may specify different dates for completion or compliance of different actions under clause (a) or clause (b).

 

7. CHAPTER VI

AMENDMENT TO THE FINANCE ACT (NO. 2), 2019

Amendment of section 127 of Act 23 of 2019.

In section 127 of the Finance Act (No.2), 2019, –

(i)   in sub-section (1), for the words "within a period of sixty days from the date of receipt of the said declaration", the words, figures and letters "on or before the 31′ day of May, 2020" shall be substituted;

(ii)  in sub-section (2), for the words "within thirty days of the date of receipt of the declaration", the words, figures and letters "on or before the 1st day of May, 2020" shall be substituted;

(iii) in sub-section (4), for the words "within a period of sixty days from the date of receipt of the declaration", the words, figures and letters "on or before the 31st day of May, 2020" shall be substituted;

(iv) in sub-section (5), for the words "within a period of thirty days from the date of issue of such statement", the words, figures and letters "on or before the 30th day of June, 2020" shall be substituted.

 

8. CHAPTER VII

AMENDMENT TO THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Insertion of new section 168A in Act 12 of 2017.

After section 168 of the Central Goods and Services Tax Act, 2017, the following section shall be inserted, namely:

Power of Government to extend time limit in special circumstances

'168A. (1) Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, by notification, extend the time limit specified in, or prescribed or notified under this Act in respect of actions which cannot be completed or complied with due to force majeure.

(2) The power to issue notification under sub-section (1) shall include the power to give retrospective effect to such notification from a date not earlier than the date of commencement of this Act.

Explanation — For the purposes of this section, the expression "force majeure" means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of this Act'.