Regulatory and Statutory Relief Measures due to Covid19

Category: TAXATION
Date: April 6, 2020

Government has announced various relaxations and extensions due to outbreak of Covid 19 in India. Though most of the compliances are extended till 30th June 2020, but it is important to note that Financial year 2019-20 is not extended to 30th June 2020. So Financial year 2019-20 will come to an end on 31st March 2020. The following extensions and relaxations are announced in Direct Tax:

  1. Return for FY 2018-19 can be filed upto 30.06.2020 (Earlier the last date for filing return for FY 2018-19 was 31.03.2020)
  2. Taxpayers can make investments or payment in LIC, PPF and NSC under section 80 C till 30.06.2020. Medical insurance payments (mediclaim) under section 80 D and donations under section 80 G can also be paid till 30.06.2020 to claim exemption while filing return for FY 2019-20
  3. Investment, construction or purchase made up to  30.06.2020 shall be eligible for claiming deduction from capital gains (under sections 54 to 54GB of the Income Tax Act)
  4. Reduced rate of interest of 9% shall be charged for non-payment of income-tax, including advance tax, tax deducted at source, tax collected at source, equalization levy, STT, CTT which are due for payment between 20.03.2020 to 29.06.2020, if these taxes are paid by 30.06.2020. No penalty or prosecution for these payments
  5. Sabka Vishwas Legal Dispute Resolution Scheme 2019 extended till 30.06.2020