Finance Ministry issues Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 today
According to the announcement made by the Finance Minister through a press release on 24 March 2020, there is an effect made to the announcement about the various relief measures associated with statutory and regulatory compliance elements all around the sectors in view of Novel Coronavirus outbreak. Government has commanded for the extension of different time limits under the Taxation and Benami Act.
It is taken into consideration that the outbreak of COVID-19 beyond different countries in the world has led to major loss to the lives of people and it has been titled as pandemic by the World Health Organisation and several Governments including
Government of India. Keeping a social distance has certainly been admitted to be the best way to prevent its spread, initiating the declaration of complete lockdown in the country.
The encounters faced by taxpayers in confronting the compliance needs under such situations, the Union Finance Minister had declared various relief policies that relates to statutory and regulatory compliance matters all over the sectors in view of the Novel Coronavirus outbreak in a press release.
“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 Coronavirus. The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to the PM CARES Fund as available to the 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 percent of gross income shall also not be applicable for donations made to PM CARES Fund.” says Nirmala Sitharam, Finance Minister.
As per the date for declaring the deduction u/s 80G below IT Act has been prolonged to 30 June, 2020. “Any individual that includes 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.” says the Government.