Tax relief provided by Government for COVID-19

Tax relief provided by Government for COVID-19

This is for all the taxpayers who must know that the financial year19 is ending on 31st March only. And also, we will let you know about Corona Relief.

A: Our Government is providing relief because of the outbreak of COVID-19. What kind of relief has been provided?

B: COVID-19 has severely impacted the business all over the country. So the Finance Minister of India has announced various relief measures regarding statutory and regulatory compliance matters in different sectors. Our discussion is based on the available press release details. We should wait till the circular or final notification gets released.

A: What is the relief offered by the Government regarding income tax in the wake of the Corona Virus?

B: March ending is extremely important for income tax. But Corona Virus is widespread across the country and the world during this time. Hence, different types of significant relief measures have been introduced by the Union Finance and Corporate Affairs Minister Smt. Nirmala Sithraman. Let’s have a look:

  • The aadhar-PAN linking date has been extended up to 30th June 2020.
  • The last date for Income tax returns filing for the financial year 2018-19 has been extended to 30th June 2020. 
  • The interest rate has been reduced from 12% to 9%, and there will be no fine or penalty levied for the late fee.
  • The last date of payment of “Vivad Se Vishwas” has been extended up to 30th June 2020. There is no need to pay an additional 10% until such date. 

A: What relief has the Government provided for GST because of Corona Virus?

B: Following are the reliefs offered by our Government in the wake of COVID-19:

  • The filing of GSTR-3B for February, March, April, and May 2020 can now be done till the last week of June 2020. You need not pay any late fee, penalty, or charge if you make the payment till that date.
  • The last date for GST annual returns filing for the financial year 2018-19 has been extended up to the last week of June.
  • You can opt for the Composition Scheme till the last week of June 2020. Also, composition dealers can make the payment and file returns for the year 2019-20 till the last week of June.
  • If there is any due date for notification, notice, approval order, filing of an appeal, statements, furnishing of return, applications, sanction order, etc. that lies between 20th March to 29th June 2020, then these can be done till 30th June 2020.
  • Payment for Sabka Vishwas Scheme can be made till 30th June 2020. No interest will be levied during this period.
  • The last date for filing of GST annual returns for the year 2018-19 has been extended to the last date of June 2020.

A: What can a taxpayer learn from this situation?

B: The financial year will close on 31st March, just like previous years. But for RBI the year-end is 30th June. Taxpayers should keep this fact in mind. They should be thankful that our Government has provided them with several preventive measures because of the COVID-19 outbreak.