Taxation Bill passed to provide relief to taxpayers. Key changes to know

2) The bill proposes some important amendments regarding foreign investors, whether they are foreign investment institutions or third category real estate inves

To provide taxpayer compliance relief amid the coronavirus pandemic, Lok Sabha recently passed a bill that amends taxation laws. The Taxes and Other Laws (Relaxation and Amendment of Certain Provisions) Bill of 2020 will replace the Taxes and Other Laws (Relaxation of Certain Provisions) Act of 2020, issued in March. The bill also provides for some changes to tax rules to boost investment.

Finance Minister Nirmala Sitharaman said the ordinance was necessary to postpone the various compliance dates under the Goods and Services Tax and Income Tax (I-T) Law during the times of COVID-19. Raghavan - Tax Advisor, Majmudar & Partners "The bill is very timely and provides relief measures in terms of compliance requirements amid the pandemic."

1) The bill amends the provisions of the Income Tax Law to grant a tax exemption for contributions to the PM-CARES Fund. Any contribution made to the PM-CARES Fund will be eligible for a 100% deduction under Section 80G, which allows donations to aid funds and designated charities as a deduction from gross income before becoming taxable.

2) The bill proposes some important amendments regarding foreign investors, whether they are foreign investment institutions or third category real estate investment institutions. The additional tax on dividends for FPIs is set at 15%, which is equivalent to a capital gain. In addition, the bill would provide an exemption from capital gains tax on the transfer of securities (other than the shares of the Indian corporation) and concession in taxation at the rate of 10% on dividends and interest income on securities for Class III AIF, which you have in GIFT City.

income tax,income tax return filing,ITR filing last date,Aadhar Pan linking,TDS deduction,ITR filing,income tax act,income tax act passed,income tax e filing,e filing income tax return

"It was necessary to end the additional fees after the abolition of DDT in the Finance Act 2020, and there was an ambiguity during the advance tax calculation on the scope of the additional fees paid by foreign financial institutions. This amendment is intended to the objective to alert on the strengthening of investment funds in the International Financial Services Authority, therefore, said Divakar Vijayasarathy, Founder and Managing Partner of DVS Advisors LLP

3) CBDT earlier reduced the rates for tax deduction at source (TDS) rates by 25% for specific unpaid payments to residents during the period from May 14, 2020, to March 31, 2021. The bill proposes to include adjustments to income tax that work retroactively on May 14, 2020.

4) The deadline for filing income tax returns for the fiscal year 2019-20 is November 30, 2020. The deadline for submitting all other relevant forms and reports (such as transfer pricing report, transfer pricing report, tax audit, etc.) is October 30, 2020.

5) Due to delays in the payment of taxes filed, self-assessment tax, regular tax, TDS, TCS, compensation tax, stock transaction tax (STT), and commodity transaction tax (CTT) that occurred between March 20 and June 30, the interest was reduced. At 9% per annum will be charged for this period. If the payment is made before June 30, no penalty or prosecution will be initiated.

6) The date to issue the order or issuance of notice has been extended by the different authorities and in compliance with various direct taxes and a Panamanian law to be promulgated/issued/issued before December 31, 2020, until March 31 of 2021.

7) The bill seeks to make anonymous assessments applicable to at least eight processes under the I-T law, including tax collection, refund, and information gathering. Raghavan Raghavan - Tax Advisor, Group & Co.

8) The bill also proposes to modify the Direct Tax Vivad se Viswas Act, 2020 to extend the payment date without an additional amount until December 31.

9) Previously, the Income Tax Department extended the term to link the Permanent Account Number (PAN) card and the Aadhaar card. Now, you have until March 31, 2020, to link your Aadhaar card to the PAN card.

10) The bill also proposes to allow the central government to eliminate any difficulty of up to two years and to provide for the repeal and provision of the tax law and other laws (Relaxation of Certain Provisions) by 2020.

Also Read: Qualcomm announces Snapdragon 750G chip with 5G connectivity

  • Share
logoSubscribe now