Anyone contributing to PM CARES Fund (Prime Minister’s Citizen Assistance and Relief Emergency Situation Situations Fund) will get full benefit under the Income Tax Act.

This is part of ‘Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020’ which was promulgated on Tuesday. This ordinance was required to make new norms effective for ease of compliance related with Income Tax and GST (Goods & Services Tax). These changes were announced on March 24 in order to provide relief to income tax and GST assesses affected by COVID -19.

According to the ordinance, the provisions of the Income-tax Act has been amended to provide the same tax relief 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 IT 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 under section 80G of the IT Act has been extended up to June 30, the donation made up to that date will also be eligible for deduction from income of FY 2019-20.

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Validity of lower or nil TDS, TCS certificate extended to June 30
Applies to resident as well as non-resident taxpayers

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 June 30 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.

Direct Taxes & Benami Transaction (Prohibition) Act

Promulgation of ordinance will enable extension of date for following purposes till June 30

  • Last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20),
  • Aadhaar-PAN linking,
  • Making various investment/payment for claiming deduction under Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations). Hence the investment/payment can be made up to June 30 for claiming the deduction under these sections for FY 2019-20,
  • Making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act. Therefore, the investment/ construction/ purchase made up to June 30 will be eligible for claiming deduction from capital gains arising during FY 2019-20,
  • The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act and,
  • The date for passing of order or issuance of notice by the authorities under various direct taxes& Benami Law

It has provided that 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 March 20 till June 29 if they are paid by June 30. Further, no penalty/ prosecution shall be initiated for these non-payments.

Under Vivad se Vishwas Scheme, the date has also been extended up to June 30 Hence, declaration and payment under the Scheme can be made up to June 30 without additional payment.

Indirect Taxes

The ordinance also prescribes extension of dates for following purposes till June 30:

  • Furnishing of the Central Excise returns due in March, April and May 2020 has been extended to 30th June,2020.
  • Last date for filing of appeal, refund applications etc., under Custom Act, the Central Excise Act and Service Tax Act, and
  • Making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019