RACP Bill 2020-Taxation and Other Laws Act, 2020

Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

Highlights of RACP Bill 2020

1.The due date of return filing u/s 139 for FY 2018-19 is not extended as per the bill. But as per the order u/s 119(2)(a) of Income Tax Act, 1961 dated 30th September, 2020, due date for FY 2018-19 is extended to 30th November, 2020.

2.The due date of return filing u/s 139 for FY 2019-20 is not extended. So the due date is 30th November,2020.

3.Due date of delivering of statement of deduction of tax at source under sub-section (2A) of section 200 of that Act or statement of collection of tax at source under sub-section (3A) of section 206C thereof for the month of February or March, 2020, or for the quarter ending on the 31st day of March, 2020 is 15th July,2020.

4.Due date of delivering of statement of deduction of tax at source under sub-section (3) of section 200 of that Act or statement of collection of tax at source under proviso to sub-section (3) of section 206C thereof for the month of February or March, 2020, or for the quarter ending on the 31st day of March, 2020 is 31st July,2020.

5.Due date of issuing of Form no.16 in respect of deduction or payment of tax under section 192 for FY 2019-20 is not extended. So the due date is 15th August,2020.

6.The time limit for the completion or compliance under sections 54 to 54GB of Income Tax Act is not extended. So the due date is 29th September,2020.

7.The time limit for making such completion or compliance under sections 54 to 54GB of Income Tax Act is not extended. So the due date is 30th September,2020.

8.The time limit for the completion or compliance under any provisions of Chapter VI-A is not extended. So the due date is 30th July,2020.

9.The time limit for making such completion or compliance under any provisions of Chapter VI-A is not extended. So the due date is 31st July,2020.

10.The due date of furnishing of report of audit for FY 2019-20 is not extended. So the due date is 31st October,2020.

11.The extension of the date as referred to point no.2 above shall not apply to Explanation 1 to section 234A of the Income-tax Act, 1961 in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of the said section exceeds Rs.1 Lakh.

12.In case of an individual resident in India referred to in sub-section (2) of section 207 i.e. The Senior Citizen who doesn’t have income from business or profession, the self assessed tax paid by him within the due date (before extension), shall be deemed to be the advance tax.

13.The time limit for the completion or compliance under any provisions of Direct Tax Vivad Se Vishwas Act is not extended. So the due date is 30th December,2020.

14.The time limit for making such completion or compliance under any provisions of Direct Tax Vivad Se Vishwas Act is not extended. So the due date is 31st December,2020.

15.Where any due date has been specified in specified Act for payment of any amount towards tax or levy, which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 or such other date after the 29th day of June, 2020 as the Central Government may, by notification, specify in this behalf, and if such amount has not been paid within such date, but has been paid on or before the 30th day of June, 2020, or such other date after the 30th day of June, 2020 as the Central Government may, by notification, specify in this behalf, then, notwithstanding anything contained in the specified Act:

  • The rate of interest payable, if any, for the period of delay shall not exceed ¾% for every month or part thereof.
  • No penalty shall be levied and no prosecution shall be sanctioned in respect of payment of taxes for the period of delay.

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Notes:

1.There is no relief granted for the Income-tax Act, 1961.

2.Due dates has been extended in respect other Acts, but not for Income Tax Act,1961.

3.The period of delay means the period between the due date and the date on which the amount has been paid.

4.This bill is passed in Lok Sabha on 19th September, 2020 and in Rajya Sabha on 22nd September, 2020 and President of India gave his assent to the bill on 29th September, 2020.

Summary

Sr.No.ParticularsDue Date
1ITR For FY 18-19[Order u/s 119(2)(a)]30/11/2020
2ITR For FY 19-2030/11/2020
3TDS/TCS Return15/07/2020 or 31/07/2020
4Form No.16 Issue15/08/2020
5The completion or compliance under sections 54 to 54GB29/09/2020
6Making such completion or compliance under sections 54 to 54GB30/09/2020
7The completion or compliance under any provisions of Chapter VI-A30/07/2020
8Making such completion or compliance under any provisions of Chapter VI-A31/07/2020
9Tax Audit Report for FY 2019-2031/10/2020
10The completion or compliance under any provisions of Direct Tax Vivad Se Vishwas Act30/12/2020
11Making such completion or compliance under any provisions of Direct Tax Vivad Se Vishwas Act31/12/2020

Provisions in respect of Trust or Institution or University or other educational institution or hospital or other medical institution

With effect from the 1st day of April, 2021:

  • Exemption to the fund or trust or institution or university or other educational institution or hospital or other medical institution shall not be available
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    to it unless such fund or trust or institution or university or other educational institution or hospital or other medical institution makes an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval:
    • where such fund or trust or institution or university or other educational institution or hospital or other medical institution is approved under the second proviso [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain provisions) Act, 2020], within 3 months from the 1st day of April, 2021.
    • Where such fund or trust or institution or university or other educational institution or hospital or other medical institution is approved and the period of such approval is due to expire, at least 6 months prior to expiry of the said period.
    • Where such fund or trust or institution or university or other educational institution or hospital or other medical institution has been provisionally approved, at least 6 months prior to expiry of the period of the provisional approval or within 6 months of commencement of its activities, whichever is earlier.
    • In any other case, at least 1 month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought.

Also Read: How to file application for Advance Rulings in GST

Section 12AB:Procedure for Fresh Registration of Trusts

1.The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall

  • (a)where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of 5 years.
  • (b)where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of the said clause
    • Call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about:-
      • the genuineness of activities of the trust or institution; and
      • the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects.
    • After satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i):-
      • pass an order in writing registering the trust or institution for a period of 5 years; or
      • if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard;
  • (c)where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institution for a period of 3 years from the assessment year from which the registration is sought.

and send a copy of such order to the trust or institution.

2. All applications, pending before the Principal Commissioner or Commissioner on which no order has been passed before the date on which this section has come into force, shall be deemed to be an application made under section 12A on that date.

3. The order under clause (a), sub-clause (ii) of clause (b) and clause (c), of sub-section (1) shall be passed, in such form and manner as may be prescribed, before expiry of the period of 3 months, 6 months and 1 month, respectively, calculated from the end of the month in which the application was received.

4. Where registration of a trust or an institution has been granted under clause (a) or clause (b) of sub-section (1) and subsequently, the Principal Commissioner or Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution after affording a reasonable opportunity of being heard.

5. Without prejudice to the provisions of sub-section (4), where registration of a trust or an institution has been granted under clause (a) or clause (b) of sub-section (1) and subsequently, it is noticed that:-

  • (a)the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13; or
  • (b)the trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality then, the Principal Commissioner or the Commissioner may, by an order in writing, after affording a reasonable opportunity of being heard, cancel the registration of such trust or institution.

Read other amendments here: The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Bill, 2020

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