Income Tax Reliefs in the light of Covid 19

Income Tax Reliefs in the light of Covid 19

In view of the disturbance caused by Novel Corona Virus (Covid 19), the Government announced certain reliefs vide Press Release dt. 24-03-2020 and thereafter issued an Ordinance and announced several other relaxations.

In this Article we made an attempt to summarize the reliefs in reference to Income Tax granted to different categories of Tax Payers:

  • Income Tax Department in its Official Twitter handle announced on 8th April 2020 that all pending income tax refunds up to Rs. 5 Lacs will be issued immediately to individuals and business entities. The decision has come due to the coronavirus lockdown in the country. According to press note of the department, this decision would benefit around 14 lakh taxpayers.
  •  The validity period of Nil/Lower TDS deduction certificates for which the validity was expiring on 31st March 2020, has been extended till 30th June 2020. The Department also clarified that the threshold/transaction limit mentioned on the certificate mentioned in the certificate for FY 2019-20 shall be taken fresh for the period from 1st April 2020 to 30th June 2020. This shall be subject to other conditions mentioned in the Order dated 31st March 2020.
  • However if the rates in the previous certificates were higher and the business wants to apply a reduced rate due to the impact of covid19, they will have to apply fresh and the benefit of this circular shall not be available.
  • In case a person had submitted valid form 15G and 15H to the Bank or other Institutions for FY 2019-20, then these form 15G and 15H shall be valid upto 30th June 2020 for FY 2020-21 as well.

Relaxation in various due dates under Income Tax:

S. No.ActParticularsExisting dateExtended due dateRemarks 
1Income TaxFY 18-19 i.e. AY 19-2031st Mar 202030th Jun 2020  
Return for FY 18-19 
2Aadhar / Pan linkingExtension of Aadhar / Pan linking date31st Mar 202030th Jun 2020  
3TDS Returns in4th quarter ending31st May 202030th Jun 2020  
Form 24Q/26Q31.3.2020 
4TDS Returns in form 26qb/qc/qdFeb Month return30th Mar 202030th Jun 2020  
Mar Month return30th Apr 202030th Jun 2020  
Apr Month return30th May 202030th Jun 2020  
5Issue of Form 16/ Form 16A4th quarter ending 31.03.202015th Jun 202030th Jun 2020  
6Issue of Form 16B/16C/16DMar Month return15th May 202030th Jun 2020  
Apr Month return14th Jun 202030th Jun 2020  
7Chapter VIA – 80C,FY 19-2031st Mar 202030th Jun 2020Insurance payments, Investments etc can be made till 30th June 2020 for claiming exemptions in FY 19-20 
80G, 80D, Donations, PPF, Life & Health Insurance, etcIT returns 
8Income Tax (payment of TDS, advance tax and TCS)   Reduced rate of Interest of 9% shall be charged for non-payment of Income tax(TDS, Advance tax, TCS), which are due from 20.06.2020 to 29.06.2020 if they are paid by 30.06.2020. 
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