The Lok Sabha has passed the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020. The bill was introduced by Finance Minister Nirmala Sitharaman in March 2020 as The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020. The Ordinance provided for certain relaxations related to compliance which includes an extension of the time limit and waiver of penalty, in relation to certain specified laws.  The laws included in the purview of the ordinance are the Income Tax Act, 1961 (IT Act), certain Finance Acts, the Central Excise Act, 1944, the Customs Act, 1962, and the Prohibition of Benami Property Transactions Act, 1988.  The ordinance provides these relaxations due to the spread of the COVID-19 pandemic in India. The following are the amendments made:

1. Extension of time limits:  The time limits for compliance or completion of certain actions under the specified laws, falling during the period March 20, 2020, to June 29, 2020, has been extended.  The time limit to complete with such actions has been extended to June 30, 2020, or such other date after this as the government deems fit in the situation. The time limits have been extended for the following actions: (i) issuing notices and notifications, completing proceedings, and passing orders by authorities and tribunals, (ii) filing of appeals, replies, and applications, and furnishing documents, and (iii) making any investment or payment for claiming certain deductions or allowances under the IT Act. The government will notify for specific dates and deadlines for these actions

2. Interest and penalty:  The payment of taxes which if done before the due date that is June 30, 2020, there will be no penalty. However, any delay without reasonable explanations will lead to 0.75% interest to be paid for every month the payment is delayed.

3. GST-related compliances:   The Ordinance amends the Central Goods and Services Tax Act, 2017 so that the government has the flexibility to change the deadlines and extend time limits and notify the same. The recommendations for change in the time limit can only be done by the GST council. This can only be done in cases where actions cannot be completed due to war, pandemic, or wherever the doctrine of force majeure applies.

4. Donations to PM CARES Fund: Deductions in taxes can be claimed against the donations made to certain funds and charitable institutions.  The Ordinance amends the IT Act to provide that donations made by a person to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) will be eligible for 100% deduction.  

This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.