Ordinance makes PM CARES fund donations eligible for tax rebates for 2019-20
Centre issued an ordinance to give effect to several economic relief measures relating to statutory and regulatory compliance matters across sectors announced by the FM a few days ago.Updated: Mar 31, 2020 23:44 IST
Centre issued an ordinance on Tuesday to give effect to several relief measures including the extension of the deadline to file Income Tax Returns and Aadhaar seeding with PAN card, announced by Union finance minister Nirmala Sitharaman on March 24 in view of the coronavirus outbreak.
The ordinance also makes donations made under PM CARES Fund, announced last week, eligible for deduction from taxes under section 80G. The tax deduction benefit for donations made to PM CARES, like for other relief funds, can now be claimed in financial year 2019-20.
Keeping in view the challenges faced by taxpayers in meeting the compliance requirements after cessation of economic activity and announcement of a nationwide lockdown, Sitharaman announced several relief measures relating to statutory and regulatory compliance matters across sectors on April 24.The ordnance provides for the extension of various time limits under the Taxation and Benami Acts.
Some of the important features and time limits which get extended by this ordinance are as under:
Direct Taxes & Benami:
(i) Extension of last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to 30th June, 2020.
(ii) Extension of Aadhaar-PAN linking date to 30th June, 2020.
(iii) The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.
(iv) The date for making investment/construction/purchase for claiming rollover benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th June 2020.
(v) It has provided that a reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.
(vi) Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment.
(i) Last date of furnishing of the Central Excise returns due in March, April and May 2020 has been extended to 30th June, 2020.
(ii) The last date for filing of appeal, refund applications etc. under the Central Excise Act, Customs Act to be filed between 20th March and 29th June 2020 will be extended to 30th June 2020.
(iii) Last date of the filing of Service tax and appeals etc extended to 30th June 2020.
(iv) The date for making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 has been extended to 30th June 2020.
(v) An enabling section empowers the govt to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council.
The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to PM CARES Fund as available to 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% of gross income shall also not be applicable for donation made to PM CARES Fund.
Hence, any person including corporate paying concessional tax on the income of FY 2020-21 under new regime can make a 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.