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 Commerce & Industry

Relaxations provided on compliances to be met by units / developers / co‐developers of SEZs

Dated: 30 MAR 2020

In view of the sudden outbreak of COVID‐19 pandemic and the nation‐wide lock‐down, most government offices are closed and a few involved in emergency services etc., are functioning with skeletal staff. The Department of Commerce has therefore decided to provide suitable relaxations on compliances to be met by units / developers / co‐developers of Special Economic Zones(SEZs). Such compliances to which the relaxations will apply, include:

· Requirement to file Quarterly Progress Report (QPR) attested by Independent Chartered Engineers by Developers/ Co‐developers

· SOFTEX form to be filed by IT/ITES units

· Filing of Annual Performance Reports (APR) by SEZ units

· Extension of Letter of Approvals (LoA) which may expire, in the cases of:

i) Developers/co‐developers who are in the process of developing and operationalising the SEZ;

ii) units which are likely to complete their 5 year block for NFE assessment;

iii) Units which are yet to commence operations

Development Commissioners of SEZs have been directed to ensure that no hardship is caused to Developers / Co‐Developer / Units and no punitive action is taken in cases where any compliance is not met during this period impacted by the above disruption. Further, as may be possible, all extensions of LoAs and other compliances may be facilitated through electronic mode in a time‐bound manner. In the cases where it is not possible to grant extension through electronic mode or in cases where a physical meeting is required, Development Commissioners have been asked to ensure that the Developer / Co‐developer / Units do not face any hardship due to such expiry of validity during this period of disruption. Ad‐hoc interim extension / deferment of the expiry date may be granted without prejudice till 30.06.2020 or further instructions of the Department on the matter, whichever is earlier.

YB/AP

(Release ID: 1609247)

 

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)

 

F.No.275/25/2020-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block. New Delhi

Dated:31^st March. 2020

Subject: Order u/s 119 of The Income Tax Act, 1961 an issue of certificates for lower rate / nil deduction / collection of TDS or TCS  u/s 195, 197 and 206C(9) - reg

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Due to outbreak of the pandemic Covid-19 vims, there is severe disruption in the normal working of almost all sectors, including functioning of the Income -lax Department, hi such a scenario, die applications filed by the payees u/s 195 and 197 of the Act for lower c-r nil rate of deduction of TDS and applications by buyers / licenses / lessees u/s 206C(9) of the Act for lower or nil rate of collection of TCS for F Y. 2020-21. have not been attended m a timely manner by the TDS/TCS-Assessing Officers, causing hardship to tax payers.

2. Considering the constraints of the Field Officers in disposing of the applications for lower or nil rale of TDS/TCS and to mitigate hardships of payees and buyers / licenses / lessees. The CBDT issues following directions / clarifications by exercise of its powers u/s 119 of the Act;

a) All the assessees who have filed application for lower or ml deduction of TDS / TCS on the Traces Portal for F Y 2020-21 and whose applications are pending for disposal as on date and they have been issued such certificates for FY 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 transact ion and the deductor or collector if any. for whom the certificate was issued for F.Y 2019-20.

b) In cases where the assessees could not apply for issue of tower or nil deduction of TDS / TCS in the Traces Portal for the FY 2020-21. but were having the certificates for F.Y. 2019-20. such certificate 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 laid down m sub-para c) below, as soon as normalcy is restored or 30 06.2020, whichever is earlier

c) In cases where the assessee has not applied for issue of lower or nil deduction of TDS / TCS in die Traces Portal, and he is also not having any such certificate  for FY.2019-20,  a  modified  procedure  for application  and consequent handling by the TDS/TCS Assessing Officer is laid down which is enclosed as Annexure.

d) On payments to Non-residents (including foreign companies) having Permanent Establishment in India and not covered by (a) and (b) above, tax on payments made will be deducted at the rate of 10% including surcharge and cess, on such payments till 30.06 2020 of KY 202 0-21, or disposal of their applications, whichever is earlier.

ANNEXURU

 

Application for lower / Nil Deduction Certificate : The applicant shall apply for the lower / NIL deduction / collection certificate under section 197 / 206C(9) of the Income Tax Act vide an email address to the Assessing Officer concerned. The email shall contain date / document as under:

1. Duly filled in Form 13 (Annexure I and / or Annexure III)

2. The documents / information as required to be uploaded on TDS-CPS website while filling up of Form 13.

3. Projected Balance Sheet and P&L account of F.Y 2020-21

4. Provided Balance Sheet and P&L account of FY 2019-20

5. Balance Sheet and P&L account of FY 2018-19

6. Form 26AS for FY 2019-20 & 2018-19

7. ITR pertaining to FY 2018-19

For issue ol certificates for lower/ nil deduction of lax under section 195(2) and 195(3), the process of furnishing of applications will continue In be same with the modification that the applications will he be filed via email and certificate will also be issued via email

Issuance of the Certificate: The certificate(s) shall be issued up to 30.06.2020 or any other dale (earlier than 30.03.2020) as specified by the AO. The Assessing Officer shall communicate the issuance of certificate vide mail containing following information

S.No	TAN of the Deductor	PAN of the Deductee	Financial Year	Section under which Tax at source is to be deducted / collected	Estimated amount of income / sum to be received / paid	Applicable rate of deduction / collection	Vaild From Date	Vaild to Date

The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the Deductor / collector.

 

 

Ministry of Finance

No Extension of the Financial Year

Dated: 30 MAR 2020

There is a fake news circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.

The Finance ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act. It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.

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RM/KMN

(Release ID: 1609424)