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

 

 

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 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)