In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of novel Coronavirus (COVID-19), the Government of India (GoI) brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 ( Ordinance) on 31 March 2020 which extended various time limits generally till 30 June 2020. As part of the first tranche of COVID-19 stimulus measures, the Finance Minister had also announced, on 13 May 2020, various interim reliefs under direct tax laws in India.
In order to provide further relief to taxpayers from making various compliances, the Central Board of Direct Taxes (CBDT) has issued a notification dated 24 June 2020 (Notification) under the Ordinance, providing for further extension in the time limits for making various compliances falling between 20 March 2020 to 31 December 2020.
Broadly, the Notification provides the following relaxations:
· Extension of time limits specified in the Ordinance for various actions and compliances falling due between the specified period from 30 June 2020 to 31 December 2020.
· Extension of time limits for filing belated and revised returns for financial year (FY) 2018-19 and original returns for the FY 2019-20, tax audit reports, tax withholding/collection statements and certificates.
· Extension of due dates for making investments for claiming capital gains roll over benefits, tax savings investments and beginning of operations by Special Economic Zone (SEZ) units for claiming profit-linked tax holiday.
This Tax Alert explains the relaxations granted by the Notification in relation to direct tax laws specifically the Income-tax Act, 1961 (ITA) and the Vivad Se Vishwas Act, 2020 (VSVA). The Notification shall come into force from 30 June 2020