Finance Minister Nirmala Sitharaman is likely to introduce the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 in the Lok Sabha on day 4 of the ongoing monsoon session of the Parliament.
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020
: This bill replaces the ordinance issued to provide compliance relief to taxpayers. It also seeks to provide tax benefits to donations made to PM CARES.
Key features of the proposed bill:On the extension of time limits the compliance or completion of certain actions under the specified laws, falling during the period March 20, 2020, to June 29, 2020, have been extended.Payment of any tax, made after the due date (due between March 20, 2020, and June 29, 2020), but before June 30, 2020 (or any further date specified by the government), will not be liable for prosecution or penalty.The Ordinance amends the Central Goods and Services Tax Act, 2017 to allow the central government to notify an extension to the time limits for various GST-related compliances and actions under the Act. Such extensions would be given based on the recommendations of the GST Council.Regarding the donations to PM CARES fund, the IT Act allows persons to lower their taxable income by availing certain deductions specified in the Act. Deductions can also be claimed against the donations made to certain funds and charitable institutions.
The monsoon session will take up eleven bills to replace the existing ordinances.