Easemytax

23/12/2020

The CBIC notifie Rule 86B in respect of restrictions on use of amounts available in electronic credit ledger

1. Rule 86B is applicable on the registered person whose value of taxable supply other than exempt supply and export, in a month exceeds Rs 50 lakhs limit to be checked for each month As per said Rule
2. taxpayers cannot use Input Tax Credit in excess of 99% of output tax liability.
3. However, Rule 86B shall not be applicable on

• registered person deposited more than Rs 1 lakh rupees as income tax under the Income-tax Act, 1961 in each of the last two financial years;
• registered person has received a refund more than Rs 1 lakh rupees in the preceding financial year on account of export under LuT or inverted tax structure;

4. cumulatively upto the said month in the current financial year registered person has discharged his output tax liability in cash which is in excess of 1% of the total output tax liability and
5. this rule not applicable on govt department, PSU, local authority.

It is noteworthy that the taxpayer has to track each month that cumulative discharge of output tax liability in cash in the current Financial Year is more than 1% upto filing of return

14/08/2020

One-time relaxation for Verification of tax-returns for the Assessment years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which are pending due to non-filing of ITR V form and processing of such returns - reg.
In respect of an Income-tax Return (ITR) which is filed electronically without a digital signature, the taxpayer is required to verify it using anyone of the following modes within the time limit of 120 days from date of uploading the ITR: -
i. Through Aadhaar OTP
ii. By logging into e-filing account through net banking
iii. EVC through Bank Account Number
iv. EVC through Demat Account Number
v. EVC through Bank ATM
vi. By sending a duly signed physical copy of ITR-V through post to the CPC, Bengalur

28/06/2020

TAXATION OF CO-OPERATIVE SOCIETY UNDER DIRECT AND INDIRECT TAX

Definition- U/s 2(19) of the Income Tax Act 1961, ‘cooperative society’ means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of the cooperative societies.
There are certain types of cooperatives, like housing cooperatives, who collects monthly subscription from the members and spends the same to meet the various joint expenses of the society to give service to members like maintenance, security etc. In this process even if any surplus is generated, it is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’. The cardinal requirement in case of mutual association is that ‘All the contributors to the common fund must be entitled to participate in the surplus & all the participators to the surplus must be contributors to the common trade. In other words there should be complete identity between the contributors and the participators.’ Thus if the cooperative earns interest from bank or parking income from non-members or rental income by letting roof for mobile towers, then all these incomes are chargeable.

Compliance of Income Tax Provisions :-

A cooperative society has to get PAN, TAN etc like any other form of business. Even to get itself registered under GST Laws or Import Export Regulations, it has to obtain the PAN.
It has to pay advance income tax in four instalments: within 15th June – 15%, 15th September – 45%, within 15th December – 75% and within 15th March – the whole amount of such advance tax as reduced by the amount paid in earlier instalment(s).
It has to comply with all the TDS provisions excepting few: No tax shall be deducted from any interest payable on debentures issued by any cooperative society u/s 193. Similarly, TDS provisions u/s 194A are not applicable for interest other than interest on securities, if such income is credited or paid by a cooperative society to a member thereof or to any other cooperative society. Though a cooperative society is not covered u/s 115-O i.e. not required to pay tax on distributed profit like domestic companies, TDS provision for dividends u/s 194 is not applicable. Compliances of other TDS provisions like time limit for deposit of TDS, electronic filing TDS returns, issuance of NSDL generated Form 16A etc are all applicable for cooperatives. Though most of the cooperatives are village level or block level cooperatives, no relaxation has been granted by the statute with respect to imposition of interest, penalty or prosecution for any violation.
A cooperative society u/s 44AA, is required to maintain books of accounts and other documents as may enable the Assessing Officer to compute its total income in accordance with the provisions of the Income Tax Act. Further, its accounts are required to be audited by a Chartered Accountant u/s 44AB notwithstanding the fact that its accounts are subjected to audit by the administrative department (Directorate of Cooperative Audit) as provided in the State Cooperative Laws. However, tax audit provisions are generally not applicable to societies which do not carry on any business. For example, housing societies in the years of construction of building premises, provisions of section 44AB would not apply as there is no business activity.
A cooperative society requires to file its return of income in ITR-5 within 30th September notwithstanding the fact that most of the State Cooperative Laws allow to held the AGM within the calendar year i.e.31st December. Just like a Company, without filing a ‘loss return’ within the stipulated time, business loss and loss under the head capital gains of a cooperative cannot be carried forward. Loss under the head income from house property and unabsorbed depreciation also cannot be carried forward if loss return is not filed at all. Provisions relating to e-filing and use of digital signature are also applicable in spite of the fact that most of cooperatives are still having limited exposure in respect of computerised accounting or internet use.
There is no threshold limit for taxability of income in case of a co-operative society. The slab rate for AY 2020-21 is as under:
Taxable income Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%
Surcharge: 12% of taxable income if net income exceed 1 crore. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
Health and Education Cess: 4% of Income Tax Plus Surcharge

MAT v. AMT

U/s 115JB, for companies, if tax payable under the normal provisions of the Income Tax Act is less than 18.5% of its book profits, then tax payable shall be 18.5% of the book profit which is known as MAT (Minimum Alternate Tax). U/s 115JC, for cooperatives, if tax payable under the normal provisions of the Income Tax Act is less than 18.5% of its adjusted total income, then tax payable shall be 18.5% of the adjusted total income which is known as AMT (Alternate Minimum Tax). Thus it is seen that while cooperatives are not exposed to tax based on book profit like companies, they are to pay a minimum tax based on adjusted total income which shall be computed by increasing the deductions as claimed by assessee under any section included in Chapter VI-A of the heading ‘C – Deductions in respect of certain incomes’ (but excluding any deduction u/s 80P) and deduction claimed u/s 10AA, with the total income as assessed by AO. In other words, the cooperatives, which are only entitled to deduction u/s 80P, shall not be affected by the AMT provisions.
Unpaid interest on borrowings from Government / Cooperative Bank v. 43B
U/s 43B, deduction otherwise allowable, shall not be allowed unless the amounts are actually paid before due date for filing return of income u/s 139(1). Generally state level cooperative bodies participate in the minimum support price operation of the Union Government where State Government acts as nodal agent. To procure food grain (paddy, wheat etc) or agricultural produce (jute, potato etc), lending are made either by State Governments or by cooperative banks. Since interest expenditures for borrowings other than specified institutions or other than scheduled banks are outside the purview of section 43B, a cooperative which made provisions in the accounts for interest payable but does not paid actually for the loan taken from Govt or from cooperative banks , there would be no disallowance. While borrowings directly from State Government is not covered u/s 43B(d) as State Governments are not specified financial institutions, borrowings from cooperative banks are not covered u/s 43B(e) as cooperative banks are not fallings under the definition of schedule bank.

Section 80P – Deduction for Co-operative Societies

For Full Article click on below mention link......

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26/06/2020

TAXATION OF EDUCATIONAL INSTITUTIONS AND UNIVERSITIES

Background: Section 11 is a popular section for claiming exemption from income tax among the non-government charitable trusts and institutions. Most of the charitable trusts, big or small are registered u/s 12AA of the Act and claim exemption u/s 11. While the exemptions available u/s 11 are general and available to all the charitable organisations, Section 10(23C) of the Act is a specific exemption available to certain Government and non-government universities and educational institutions.
By way of this note, we will analyse the conditions prevalent for claiming of exemption by Government and non-government educational institutions.
A. Government Educational Institutions: Income received by any university or educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government is fully exempt from tax vide Section 10(23C)(iiiab). Hence, a Government educational institution is fully exempt from income tax without any separate approvals etc. as long as it is not for profit purpose.
B. Non-government Educational Institutions: The exemption for non-government (private) educational institutions depends upon the aggregate annual receipts of the university / educational institution.
1) Educational Institutions with annual receipts up to Rs. 1 crore: Section 10(23C)(iiiad) provides that the income earned by any university or educational institution existing solely for educational purposes and not for the purposes of profit shall be exempt from tax if the aggregate annual receipts of such university or educational institution do not exceed Rs. 1 crore.
Thus, an educational institution having receipts upto Rs. 1 crore can claim full exemption under the above clause without requiring a separate approval or registration.
Here it is important to note that the term “annual receipts” has not been defined under the law. Keeping in mind the intention of the provisions, annual receipts should mean receipts from the various fees and charges collected by the institution. It can also include the receipts from donations.
2) Educational Institutions with annual receipts exceeding Rs. 1 crore: Exemption in the case of an educational institution having receipts exceeding Rs. 1 crore is governed by Section 10(23C)(vi) which states that income earned by any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad), shall be exempt if they are approved by the prescribed authority. Thus, where the aggregate receipts of the institution exceeds Rs. 1 crore, the institution needs a separate approval for claiming the exemption u/s 10(23C).
The Application for approval is required to be made in Form No. 56D along with the necessary supporting documents before the Commissioner of Income Tax (Exemptions). Like the approval u/s 12AA, the approval u/s 10(23C) is also available indefinitely unless it is rescinded by the authorities.
There are some further conditions prescribed for an educational institution having receipts in excess of Rs. 1 crore. The third proviso to Section 10(23C) provides for the following two conditions:
i) Spend minimum 85%: The educational institution shall apply (spend) its income wholly and exclusively to the objects for which it is established. Further, the institution shall apply at least 85% of the income every year. Thus, just registration u/s 10(23C) by itself does not result in full exemption. The institution shall spend at least 85% of total income in order to claim full exemption. It may be noted that the institution is allowed to retain up to 15% of total income without any conditions.
In case the income applied falls short of the said 85%, the institution can accumulate such excess income for application in subsequent year(s) not exceeding five years. For example-
Gross Income : Rs. 2,00,00,000/-
85% of the Gross Income : Rs. 1,70,00,000/-
Actual Amount Spent : Rs. 1,40,00,000/-
In this case, the shortfall of Rs. 30,00,000/- can be accumulated by the institution which can be spent in the subsequent five years.
However, the accumulated amounts are required to be spent by the institution on its own and it cannot spent the same by way of donations (corpus or otherwise) to any trust registered u/s 12AA or any other institution claiming exemption u/s 10(23C).
From the above, it is clear that the provisions are similar to the one available u/s 11 to the Trusts registered u/s 12AA. The only difference here seems to be that there is no need to pass a trustees’ resolution to accumulate the income and no need to file a separate Form and specify the purpose of accumulation (unlike Form No. 10 in the case of 12AA registered trusts).
ii) Investments: The second condition is that the institution shall invest its money only in the modes specified u/s 11(5). This is once again similar to the provisions applicable to a trust registered u/s 12AA.
iii) Other Conditions:
a) Income Tax Return: By virtue of 139(4C) every educational institution referred to in sub-clause (iiiad) or sub-clause (vi) of Section 10(23C) whose total income, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, shall furnish a return of income. Therefore, if the total receipts of the institution exceeds Rs. 2,50,000/-, it shall file the return of income. The Form of ITR is ITR-7, the same as applicable to a Section 12AA registered Trust.
b) Audit: Proviso no. 10 to Section 10(23C) provides that where the total income of the institution, without giving effect to the provisions of this section, exceeds the maximum amount which is not chargeable to tax in any previous year, such institution shall get its accounts audited and furnish along with the return of income for the relevant assessment year, the report of such audit Form No. 10BB. Therefore, if the total receipts of the institution exceeds Rs. 2,50,000/-, it shall file the return of income.
c) Corpus Donations to other Trusts: Proviso no. 12 to the Section 10(23C) further provides that any amount credited or paid out of income of any university or educational institution to any trust or institution registered under section 12AA, being a corpus donation shall not be treated as application of income to the objects for which such university or educational institution is established. Therefore, the educational institutions registered u/s 10(23C)(vi) are barred from giving corpus donations to other Trusts registered u/s 12AA.
d) Other Provisions: Applicability of other provisions like deduction of tax at Source (TDS) on expenses are fully applicable to an educational institution. Therefore, an educational institution is required to deduct tax from payments, wherever required, in order to claim the amount as application of income.
Conclusion: From the above discussion, it is clear that the exemption provisions of Section 10(23C) and Section 11 are more or less similar. Both have similar conditions and requirements for claiming the exemption. However, Section 10(23C) has less requirements when it comes to accumulation of income i.e. there is no need to file a separate Form and no need to specify the purposes of accumulation.
Disclaimer: The above analysis is based on the current position of the income tax laws and our understanding of the same. The income tax laws are subject to frequent changes and the foregoing analysis may need to be updated with subsequent changes in the law.

Taxation of Educational Institutions under GST

1. What were pre-GST laws laid down for Educational Institutions
Services provided by an educational institution to its students or faculty or staff were exempt. (Mega Exemption -Notification Number ST-25/2012 dated 20/06/2012)
Later the exemption in relation to services provided to educational institutions was modified with effect from 01-04-2014 and scope of the exemption for services provided to the Educational Institutions (Institution providing pre-school education and education up to higher secondary school or equivalent) was restricted to some specified services namely-
1. Transportation of students, faculty and staff
2. Catering, including any mid-day meals scheme sponsored by the Government;
3. Security services performed in such educational institution
4. Cleaning services performed in such educational institution
5. House-keeping services performed in such educational institution
6. Services relating to admission to, or conduct of examination by, such institution
Any other service provided apart from those mentioned above to educational institution (Institution providing pre-school education and education up to higher secondary school or equivalent) was taxable
Also, any service provided to an institution other than Institution providing pre-school education and education up to higher secondary school or equivalent was taxable.
2. What is an Educational Institution under GST?
Under GST, “educational institution” is defined as an institution providing services by way of:
• Pre-school education and education up to higher secondary school or equivalent;
• Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;
• Education as a part of an approved vocational education course;
3. Are Educational Services considered as Supply and its Taxability
Taxable supply means a supply of goods or services or both which is leviable to tax under GST;The following services provided by an educational institution to its students, faculty and staff or to an educational institution are not required to be taxed under GST.
Transportation of students, faculty and staff;
Catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
Security or cleaning or house-keeping services performed in such educational institution;
Services relating to admission to, or conduct of examination by, such institution up to higher secondary:
Provided that any service provided to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent is treated as a taxable service.
4. Exemptions available to Institutions
1. Income from education is wholly exempt from GST if a charitable trust is running a school, college or education institution for abandoned, orphans, homeless children, physically or mentally abused persons, prisoners or persons over the age of 65 years or above residing in a rural area.
2. Government or local authority or governmental authority carrying on the activity of education is exempted from GST as this is not included in the ambit of supply of services. For Example – Government schools / Municipal schools.
3. Education provided by below are also Exempted Under GST:
a. National skill development corporation set up by the Indian government
b. National skill development corporation approved sector skill councils
c. National skill development corporation approved assessment agencies
d. The national skill development programs approved by NSDC Vocational skill development program approved under national skill certification and monetary reward scheme
e. Any scheme implemented by NSDC with training partners
4. Exemption has also been granted to the services provided by the IIM–
a. 2 year full-time residential PG programs in Management for Post Graduate Diploma in Management, admission in which is granted via CAT
b. Fellowship programs in Management
c. 5 Year Integrated Programs in management studies (but excludes the Executive Development Program).
5. Should educational institutions be registered under GST?
• Where the educational institution is providing only education as a service then such fees are chargeable at NIL rate and such educational institutions are not required to be registered.
• Where educational institutions are also providing other supplies or other services, i.e., providing books to students, providing shoes or uniforms etc to students then in such cases such institutions are liable to get themselves registered.
6. Applicability of GST on Higher Educational Institutions
Services provided to higher educational institutions are taxable. While services provided by an educational institution are out of the GST ambit, the same is not the case with services provided to an educational institution.
The GST exemption on procurements is available only to schools (from pre-school up to higher secondary school or its equivalent). Hence, the ‘input’ or supply of services such as transportation, catering, housekeeping, services relating to admission or conduct of examination to higher educational institutions will bear GST levy. This will have to be borne by the higher educational institution.
7.Applicability of GST on Training programs, camps, yoga programs and other events
Training programs, camps, yoga programs and other events would be considered a commercial activity, liable for GST.
8. Whether books or stationery distributed to students covered under GST?
Uniform, stationery, and other non-academic related supplies are taxable under GST. Supplies provided by third parties like the musical instrument, computers, sports equipment and after-school activities offered directly by third parties are also taxable.
Supply of books is exempt under GST.

9. Chargeability of GST on Private Coaching centres and Distance Education
1. Private institution and coaching centres do not have any specific curriculum and do not conduct any examination or award any qualification. Hence taxable at the rate of 18 percent.
2. Distance Education is taken up generally for higher education and hence taxable at the rate of 18 percent.

The importance of education in India can’t be undermined due to the majority of the population below 25 years of age. Due to the large population and poverty, Education should easily be available at less cost. Implementation of GST has led to rise in the cost of the higher education and Distance Education.
When schools were considered and exempted from GST, the government had to give the same consideration to HEIs as well, which would have avoided such a situation.

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25/06/2020

The Central Board of Indirect Taxes and Customs (CBIC) waived off the late fee and interest on the filing of GSTR-3B and GSTR-1as per the recommendations of the GST Council. The Board also notified the extension of due dates for filing GSTR-3B for the period in which businesses were affected due to the COVID-19 outbreak.

The last GST Council meeting held on 12th June decided that, for the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot of Return Filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020, there will be zero late fees.

“Provided that the rate of interest per annum shall be as specified in column (3) of the Table given below for the period mentioned therein, for the class of registered persons mentioned in the corresponding entry in column (2) of the said Table, who are required to furnish the returns in FORM GSTR-3B, but fail to furnish the said return along with payment of tax for the months mentioned in the corresponding entry in column (4) of the said Table by the due date,” a notification issued by the CBIC, the apex indirect tax body on Wednesday said.

For those people who have a tax liability, the maximum late fee for non-filing of GSTR-3B returns for the period July 2017 – January 2020 has been capped to Rs 500. This will apply to all returns submitted on July 1, 2020. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest.

Form GSTR-1, a separate notification by the Board said that “Provided also that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who fail to furnish the details of outward supplies for the months or quarter mentioned in column (2) of the Table below in FORM GSTR-1 by the due date, but furnishes the said details on or before the dates mentioned.”

Further, the due date for filing of GSTR-3B has also been extended. According to a notification, for taxpayers having an aggregate turnover of up to rupees five crore rupees in the previous financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman, and the Nicobar Islands or Lakshadweep, the return in FORM GSTR-3B of the said rules for the month of August 2020 shall be furnished electronically through the common portal, on or before the 1st day of October 2020.

It was provided that, for taxpayers having an aggregate turnover of up to rupees five crore rupees in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi, the return in FORM GSTR-3B of the said rules for the month of August 2020 shall be furnished electronically through the common portal, on or before the 3rd day of October 2020.

The notification also relaxed the interest payable for the class of registered persons who are required to furnish the returns in FORM GSTR-3B but fail to furnish the said return along with payment of tax for the months from February to July 2020.

25/06/2020

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for furnishing FORM GSTR-3B for the supply made in the month of May 2020.

A notification released by the CBIC on Friday said that “for taxpayers having an aggregate turnover of up to rupees five crore rupees in the previous financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep, the return in FORM GSTR-3B of the said rules for the month of May, 2020 shall be furnished electronically through the common portal, on or before the 12th day of July 2020.”

Further, the taxpayers having an aggregate turnover of more than rupees 5 crore rupees in the previous financial year, could file their return in FORM GSTR-3B for the month of May, 2020 electronically through the common portal, on or before the 27th June, 2020.

The notification further said that for taxpayers having an aggregate turnover of up to rupees five crore rupees in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi, the return in FORM GSTR-3B of the said rules for the month of May 2020 shall be furnished electronically through the common portal, on or before the 14th day of July 2020.

25/06/2020

In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Novel Corona Virus (COVID-19), the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 [the Ordinance] on 31st March, 2020 which, inter alia, extended various time limits.

In order to provide further relief to the taxpayers for making various compliances, the Government has issued a Notification on 24th June, 2020, the salient features of which are as under:

• The time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) has been extended to 31st July, 2020.

• Due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to 30th November, 2020. Hence, the returns of income which are required to be filed by 31st July, 2020 and 31st October, 2020 can be filed upto 30th November, 2020. Consequently, the date for furnishing tax audit report has also been extended to 31st October, 2020.

• In order to provide relief to small and middle-class taxpayers, the date for payment of self-assessment tax in the case of a taxpayer whose self-assessment tax liability is upto Rs. 1 lakh has also been extended to 30th November, 2020. However, it is clarified that there will be no extension of date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. 1 lakh. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income-tax Act, 1961 (IT Act) and delayed payment would attract interest under section 234A of the IT Act.

• The date for making various investment/ payment for claiming deduction under Chapter-VIA-B of the IT Act which includes section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations) etc. has also been further extended to 31st July, 2020. Hence the investment/ payment can be made upto 31st July, 2020 for claiming the deduction under these sections for FY 2019-20. The date for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been further extended to 30th September, 2020. Therefore, the investment/ construction/ purchase made up to 30th September, 2020 shall be eligible for claiming deduction from capital gains.

• The date for commencement of operation for the SEZ units for claiming deduction under section 10AA of the IT Act has also been further extended to 30th September, 2020 for the units which received necessary approval by 31st March, 2020.

• The furnishing of the TDS/ TCS statements and issuance of TDS/ TCS certificates being the prerequisite for enabling the taxpayers to prepare their return of income for FY 2019-20, the date for furnishing of TDS/ TCS statements and issuance of TDS/ TCS certificates pertaining to the FY 2019-20 has been extended to 31st July, 2020 and 15th August, 2020 respectively.

• The date for passing of order or issuance of notice by the authorities and various compliances under various Direct Taxes & Benami Law which are required to be passed/ issued/ made by 31st December, 2020 has been extended to 31st March, 2021. Consequently, the date for linking of Aadhaar with PAN would also be extended to 31st March, 2021.

• The reduced rate of interest of 9% for delayed payments of taxes, levies etc. specified in the Ordinance shall not be applicable for the payments made after 30th June, 2020.

The Finance Minister has already announced extension of date for making payment without additional amount under the “Vivad Se Vishwas” Scheme to 31st December 2020, necessary legislative amendments for which shall be moved in due course of time. The said Notification has extended the date for the completion or compliance of the actions which are required to be completed under the Scheme by 30th December, 2020 to 31st December, 2020. Therefore, the date of furnishing of declaration, passing of order etc under the Scheme stand extended to 31st December, 2020. Deferment of the implementation of new procedure for approval/ registration/ notification of certain entities u/s 10(23C), 12AA, 35 and 80G of the IT Act has already been announced vide Press Release dated 8th May, 2020 from 1st June, 2020 to 1st October, 2020. It is clarified that the old procedure i.e. pre-amended procedure shall continue to apply during the period from 1st June, 2020 to 30th September, 2020. Necessary legislative amendments in this regard shall be moved in due course of time. The Finance Minister has already announced a reduced rate of TDS for specified non-salaried payments to residents and specified TCS rates by 25% for the period from 14th May, 2020 to 31st March, 2021. The announcement was also followed by the Press Release dated 13th May, 2020. The necessary legislative amendments in this regard shall be moved in due course of time.