New Delhi, 31 March: The Central government has made an announcement of a 100% reduction in income tax on donations to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund ( PM-Cares fund )to deal with the corona virus crisis.
Apart from this, the government has issued an ordinance to provide relief to taxpayers and businessmen during this crisis in terms of income tax, GST returns, income tax exemption and various investments and payments with customs and excise tax.
President Ramnath Kovind also gave his approval on “Taxation and Other Laws (Relief in various provisions) Ordinance 2020” on Tuesday.
Through this ordinance, a provision of 100 per cent tax exemption has been made on the contribution made to the PM Cares Fund, in the same manner as the exemption is given on any contribution to the Prime Minister’s National Relief Fund.
After the issuance of this ordinance, the deadline for filing of income tax returns for the financial year 2018-19 has been extended from 31 March 2020 to 30 June and the last date for adding PAN to Aadhaar has also been extended for 3 months to June 30.
Along with this, Section 80-C, 80D, 80G under Income Tax Law Chapter Six A-B, under which tax exemption on investment, payment made in insurance policy, PPF, National Savings Letter etc. like medical insurance premiums and donations etc. respectively, the time limit has also been extended to June 30, 2020 for such investments.
According to the ordinance, now they can be invested till June 30 to get tax exemption during the financial year 2019-20.
The Central Excise returns given in March, April and May through the ordinance will also be filled up to June 30, 2020.
The Finance Ministry has tweeted that the government has come up with an ordinance on March 31 to extend the deadlines under the Taxation and Benami Acts.
It is noteworthy that the Finance Minister had announced to extend the time limit for linking PAN with Aadhaar with income tax, GST in view of the outbreak of COVID-19.
