7 Major Tax reliefs during COVID-19 Crisis

In an offer to alleviate the difficulty of individual taxpayers and organizations in the midst of the Covid-19 pandemic, the administration has rolled out certain improvements in the personal tax consistence prerequisites. The move is planned for giving the concerned people and organizations some alleviation just as more opportunity to meet their different legal and administrative compliances, remembering expansion for the date for filing of personal tax return (ITR) for FY19 just as connecting PAN with Aadhaar. 

Here we are investigating the 6 key changes made in the annual tax and other consistence necessities: 

#1. Augmentation in the date for ITR filing 

According to the warning gave by the Ministry of Finance, the ideal opportunity for filing of unique just as overhauled ITR for AY 2019-20 (FY 2018-19) has been stretched out to July 31, 2020. Alongside this, the due date for ITR filing for AY 2020-21 (FY 2019-20) has likewise been stretched out to November 30 this year. With this, the personal tax returns required to be recorded by July 31, 2020 and October 31, 2020 would now be able to be documented up to November 30, 2020. Aside from this, the administration has additionally expanded the date for outfitting tax review report to October 31. 

#2. Expansion in PAN-Aadhaar connecting time limit 

Alongside expansion in the date for filing annual tax return, the PAN-Aadhaar connecting cutoff time has likewise been reached out to March 31, 2021. The past cutoff time for connecting one’s PAN card with the Aadhaar card was June 30, 2020. This cutoff time augmentation will support those PAN or Aadhaar cardholders who are yet to connect the two. 

As indicated by CBDT, the PAN-Aadhaar connecting cutoff time has been broadened especially taking into account the way that the legislature has likewise extened the date for going of request or issuance of notice by the specialists and different compliances under different Direct Taxes and Benami Law from December 31, 2020 to March 31, 2021. 

#3. Augmentation in due date for installment of self-evaluation tax 

To give some help to the white collar class and little taxpayers, the legislature has broadened the due date for installment of self-evaluation tax to November 30 this year. Nonetheless, according to the warning, this has been done distinctly for those taxpayers whose self-appraisal tax obligation is up to Rs 1 lakh. Hence, taxpayers whose self-appraisal tax obligation is more than Rs 1 lakh won’t get profited by this expansion in date. 

“For this situation, the entire of the self-evaluation tax will be payable by the due dates indicated in the Income-tax Act, 1961 and postponed installment would draw in enthusiasm under area 234A of the IT Act,” the CBDT explained. 

#4. Deferring date for making speculations 

The administration has additionally expanded the date for making different speculation or installment for guaranteeing derivation under Chapter-VIA-B of the Income Tax Act, which incorporates area 80C (PPF, LIC, NSC and so forth.), segment 80D (Mediclaim), and segment 80G (Donations) among others. With this expansion, one will currently have the option to make venture or installment up to July 31, 2020 for guaranteeing findings under the different areas for the Financial Year 2019-20. 

#5. Augmentation in date for guaranteeing conclusion in regard of capital increases 

According to the notice, the administration has additionally broadened the date for making speculation, development or buy for guaranteeing the turn over advantage or reasoning in regard of capital increases under areas 54 to 54GB of the Income Tax Act to September 30, 2020. With this, the speculation, development or buy made up to September 30 this year will be qualified for guaranteeing reasoning from capital additions. 

#6. Augmentation in dates for outfitting and issuance of TDS and TCS declarations 

The outfitting of the TDS and TCS proclamations and the issuance of TDS and TCS declarations being the essential for empowering the taxpayers to set up their ITR for FY 2019-20, the date for outfitting of TDS/TCS articulations and issuance of TDS/TCS testaments relating to the FY 2019-20 has been reached out to July 31, 2020 and August 15, 2020, separately.

#7. No GST reports in Income Tax Audit Report

Firms are not expected to present the central matters of the GST review report and GAAR in their tax Audit Report until March 31, 2021. The Central Board of Direct Taxes (CBDT) has expressed this in its request reported as of late. 

Previously mentioned, the CBDT has gotten numerous memoranda identifying with the issues during this respect. 

In an investigation of the questions ascending because of the COVID-19 pandemic, the CBDT has chosen to exclude the tax survey report from the fuse of the main objects of the GST review report and GAAR (General Anti-Avoidance Rules) most recent by March 31, 2021. 

In the wake of analyzing the case keeping obvious genuine emerging the nation over from the Covid-19 scourge, it is concluded that the requirement for inclusion u/s 30C and 44 of the tax review report is to be stretched out until March 2021.

So these are the key reliefs given by the tax department to the taxpayers durig COVID-19.


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