Lok Sabha passed taxation bill to provide reliefs for taxpayers

Lok Sabha passed a taxation bill that seeks to provide various reliefs in terms of compliance requirements for taxpayers amid the coronavirus pandemic. The reliefs include extending deadlines for filing returns and for linking PAN and Aadhaar.

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Key-Points

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, will replace the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020, promulgated in March.

The bill aims at providing relaxations related to compliance by extending the time limit and waiving penalty in relation to certain specified laws.

These laws include the Income Tax Act, 1961 (IT Act), some Finance Acts, the Central Excise Act, 1944, the Customs Act, 1962, and the Prohibition of Benami Property Transactions Act, 1988.

The bill will replace the ordinance which was promulgated in March this year. The bill also extends the deadline for filing declaration and due amount under the Vivad Se Vishwas Scheme till 31st December.

The legislation provides these relaxations in view of spread of the coronavirus pandemic in India. The bill proposes amendment in the IT Act to provide that donations made by a person to the PM CARES Fund will be eligible for 100 per cent deduction in the taxable income.