Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 15th April, 2020

PRESS RELEASE

Over 10.2 lakh Refunds worth Rs.4,250 Crore issued in a Week by CBDT

In pursuance to the Government’s decision vide Press Note dated April 8th 2020 to issue pending income tax refunds up to Rs. 5 lakh in order to help taxpayers in a Covid-19 pandemic situations, the Central Board of Direct taxes (CBDT) today said that it has already issued over 10.2 lakh refunds totalling to around Rs. 4,250 crore as on April 14th 2020. These refunds are over and above the 2.50 crore refunds already issued in FY 19-20 till March 31st 2020 totalling to Rs. 1.84 lakh crore.

CBDT further said that about 1.75 lakh more refunds are in the process of issuance in this week. These refunds would get credited directly to the taxpayer bank account in 5-7 business days from issuance. However, in around 1.74 lakh cases, email responses are awaited from taxpayers regarding reconciliation with their outstanding tax demand for which a reminder email has been sent asking them to respond within 7 days so that the refund can be processed accordingly. 

It may be noted that these reminder emails from I-T department are in fact for the benefit of taxpayers as it seeks them to confirm their outstanding demand, their bank accounts and reconciliation of defect/mismatch prior to issue of refund.

CBDT appealed that it is in the interest of taxpayers to provide a response to such emails at the earliest so that refunds could be processed and issued at the earliest. CBDT has requested taxpayers to check their email and login to their e-filing account to respond to the I-T Department immediately.

CBDT also said that it has noted in a few media, including social media, some questions are being raised with regards to CBDT’s computerised email to the taxpayers to respond within 7 days for enabling the department to process refund.  In this regards, it is clarified that these are the necessary routine process related communications to the taxpayers to seek response on defective ITRs, prima facie adjustments and where confirmation is sought about certain claims made by them. In all such cases, a quick response from the taxpayer would enable the I-T Department to process their refunds expeditiously.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Ministry Of Law & Justice

Income Tax Appellate Tribunal holds All India Video Conference on ‘The Direct Tax Vivad Se Vishwas Act, 2020’

ITAT President Justice P.P. Bhatt encourages stakeholders to avail the Scheme so as reduce pending tax litigation

Government open to suggestions for better implementation of the scheme and propose amendments to the Bill, says Mr. P.C. Mody, Chairman, CBDT

Dated: 06 APR 2020

At a time when the entire world, including India, is traversing in the uncharted territory of the pandemic of Coronavirus COVID-19, and is virtually in a complete lockdown of 21 days effective 24^th March, 2020 announced by the Government of India, the Income Tax Appellate Tribunal (ITAT), held an All India Video Conferencing of its Members on the topic ‘The Direct Tax Vivad Se Vishwas Act, 2020’ here today.  The session was presided over by Mr. Justice P.P. Bhatt, President, ITAT.  Shri Pramod Chandra Mody, Chairman, Central Board of Direct Taxes (CBDT) was the chief guest. The other guest faculty included Shri Kamlesh Chandra Varshney, Joint Secretary-TPL(1) and Shri Rajesh Kumar Bhoot, Joint Secretary-TPL(2) in the Ministry of Finance.   Keeping in view the relevancy and importance of the subject, the President, ITAT thought it fit to invite the representatives of the ten major Tax Bar Associations from all over India.  Accordingly, the representatives of the Bar Associations from Delhi, Mumbai, Ahmedabad, Bengaluru, Kolkata, Chennai, Hyderabad, Lucknow, Pune and Chandigarh participated.

In his Presidential address, Justice P.P. Bhatt emphasized the need of stakeholders’ participation in the Alternative Dispute Resolution Mechanism and explained the keen interest being evinced by the Central Government to create a dispute-free tax collection system. He stated that as an institution specialising in adjudication of tax disputes, ITAT expected all the stakeholders to consider availing the Scheme which was intended to reduce the pending litigation, enable timely recovery of taxes by the Government and sparing the taxpayers’ time, resources and energy from litigation.  He urged the stakeholders, more particularly, the tax practitioners to take the task further in a mission mode, so that the system that is choked with the avoidable litigation could be relieved for concentrating on more meritorious issues, which have a bearing on the tax policies affecting the taxpayers on a large scale.  He observed that the success of the technical session lies in carrying home the message by the representatives of the Bar Associations for further discussion with the members in their respective Associations and in carrying forward the objectives of the scheme to its logical conclusion.

Mr. P.C. Mody, Chairman, CBDT explained the objective behind the scheme and the role of the stakeholders in making it a grand success. He explained to the audience that the Government as well as the Board have undertaken a massive exercise of considering the suggestions from every corner, for proposing suitable amendments to the Act and also clarifying the doubts by way of answers to the frequently asked questions. He said that no scheme could be conceived with all the perfections, so also could be this scheme, and therefore, he assured that the Government and the Board are open for suggestions and comments from every stakeholder for better implementation of the scheme in its letter and spirit.

Mr Kamlesh Chandra Varshney and Mr Rajesh Kumar Bhoot, Joint Secretaries in the Ministry of Finance explained the subject from different angles and also the text of the scheme as well as the nuances involved in its implementation.

One representative from each of the ten Bar Associations participated in the discussions and deliberations by making several important suggestions for effective implementation of the scheme and also seeking clarification in respect of certain queries which go to the core of the implementation of the Scheme. The representatives of the Bar Associations unanimously expressed the opinion that the scheme itself is a wonderful piece of legislature that has come after a long time. They expressed a feeling that the unique initiative of holding the technical session by the  ITAT would go a long way in facilitating the implementation of the scheme and the expertise of the speakers on the subject reflected in their dealing with the subject and had thrown a new light in the understanding of the nuances. The representatives of the Bar Associations also expressed their satisfaction about the value addition to the knowledge which they would share with the other members of the Associations and to encourage the deserving cases to end up in filing the declarations under this scheme.

            Mr. G.S. Pannu, Vice President of Delhi Zone coordinated the entire session.  It was emphasised by Mr. Pannu that apart from the scheme which was laudable, it was important that the CBDT draws up a mechanism, by way of which, the litigation is kept within manageable limits by making suitable amendments in the Statute.

The one and half hour long video conference came to an end with the vote of thanks presented by Mr. R.S. Syal, Vice President, Pune Zone.

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APS/PK
(Release ID: 1611698)

 

Ministry of Finance

IT Department to release all pending income tax refunds up to Rs 5 lakhs immediately ; Around 14 lakh taxpayers to benefit

All GST & CUSTOM refunds also to be released; to provide benefit to around 1 lakh business entities including MSMEs Rs 18,000 crore of total refund granted immediately

Dated: 08 APR 2020

In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5lakh, immediately. This would benefit around 14 lakh taxpayers.

It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore.

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RM/KMN

(Release ID: 1612291)

 

Ministry of Finance

CBDT issues orders u/s 119 of IT Act, 1961 to mitigate hardships to taxpayers arising out of compliance of TDS/TCS provisions

Dated: 04 APR 2020

Due to outbreak of the Covid-19 pandemic, there is severe disruption in the normal working of almost all sectors. To mitigate the hardships of taxpayers, the CBDT has issued the following directions / clarifications by exercise of its power u/s 119 of the Income-tax Act, 1961 (the Act):

All the assessees who have filed application for lower or nil deduction of TDS/TCS for F.Y. 2020-21 and whose applications are pending for disposal as on date and they have been issued such certificates for F.Y. 2019-20, then such certificates would be applicable till 30.06.2020 of F.Y. 2020-21 or disposal of their applications by the Assessing Officers, whichever is earlier, in respect of the transaction and the deductor or collector if any, for whom the certificate was issued for F.Y. 2019-20. In cases where the assessees could not apply for issue of lower or nil deduction of TDS/TCS in the Traces Portal for the F.Y. 2020-21, but were having the certificates for F.Y. 2019-20, such certificates will be applicable till 30.06.2020 of F.Y. 2020-21. However, they need to apply at the earliest giving details of the transactions and the Deductor/Collector to the TDS/TCS Assessing Officer as per procedure prescribed. Further, on payments to Non-residents (including foreign companies) having Permanent Establishment in India, where the above applications are pending, tax on payments made will be deducted at the subsidised rate of 10% including surcharge and cess, on such payments till 30.06.2020 of F.Y. 2020-21, or disposal of their applications, whichever is earlier (Order passed on 31.03.2020).

In case of pending applications for lower/nil rate of TDS/TCS for F.Y. 2019-20, the Assessing Officers have been directed to dispose off the applications through a liberal procedure by 27.04.2020, so that the taxpayers may not have to pay extra tax which may cause liquidity issues to them (Order passed on 03.04.2020).

To mitigate the hardships of small taxpayers, it has been decided that if a person had submitted valid Forms 15G and 15H to the Banks or other institutions for F.Y. 2019-20, then these Forms would be valid up to 30.06.2020. This will safeguard the small tax payers against TDS where there is no tax liability (Order passed on 03.04.2020).

All the above orders passed u/s 119 of the Act are available on www.incometaxindia.gov.in  under the head Miscellaneous Communications.

RM/KMN
(Release ID: 1611042) 

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Click here to download CBDT Order u/s 119 - CBDT grants further COVID relief in respect of TDS / TCS provisions, extends validity of 15G/H declarations till June 30th

 

 

Ministry of Finance

Finance Ministry issues Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020

Dated: 31 MAR 2020

In order to give effect to the announcements made by the Union Finance Minister vide Press Release dated 24.03.2020, regarding several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the govt has brought in an Ordinance on 31.03.2020 which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the Rules or Notification which are prescribed/ issued under these Acts.

It may be noted that the outbreak of Novel Corona Virus (COVID-19) across many countries of the world has caused immense loss to the lives of people, and accordingly, it has been termed as pandemic by the World Health Organisation and various Governments including Government of India. Social distancing has been unequivocally accepted to be the best way to contain its spread, leading to announcement of complete lockdown in the country. Keeping in view the challenges faced by taxpayers in meeting the compliance requirements under such conditions, the Union Finance Minister had announced several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak on 24.03.2020 vide a press release.

Some of the important features and time limits which get extended by this Ordinance are as under:-

Direct Taxes & Benami:

i) Extension of last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to 30^th June, 2020.

ii) Extension of Aadhaar-PAN linking date to 30^th June, 2020.

iii) The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30^th 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.

iv) The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30^th 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.

v) The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.

vi) The date for passing of order or issuance of notice by the authorities under various direct taxes& Benami Law has also been extended to 30.06.2020.

vii) 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 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.

viii) Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment.

Indirect Taxes:

i) Last date of furnishing of the Central Excise returns due in March, April and May 2020 has been extended to 30^th June,2020.

ii) Wherever the last date for filing of appeal, refund applications etc., under the Central Excise Act, 1944 and rules made thereunder is from 20^th March 2020 to 29^th June 2020, the same has been extended to30^th June 2020.

iii) Wherever the last date for filing of appeal, refund applications etc., under the Customs Act, 1962 and rules made thereunder is from 20^th March 2020 to 29^th June 2020, the same has been extended to30^th June 2020.

iv) Wherever the last date for filing of appeal etc., relating to Service Tax is from 20^th March 2020 to 29^th June 2020, the same has been extended to30^th June 2020

v) The date for making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 has been extended to 30^th June 2020 thus giving more time to taxpayers to get their disputes resolved.

In addition to the extension of time limits under the Taxation and Benami Acts as above, an enabling section has got inserted in the CGST Act, 2017 empowering the Government to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council.

PM CARES FUND

4.    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 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 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 in concessional taxation regime for income of FY 2020-21.  

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RM/KMN
(Release ID: 1609734)