Relief measures for individual taxpayers due to COVID-19

The Government has come to the rescue of taxpayers by extending deadlines and reducing penalties.

Due dates relevant to the individuals are extended


1. Belated / revised tax return filing

A belated tax return and revised tax return for Financial Year (FY) 2018-19 was to be filed on or before 31 March 2020. This due date is now extended to 30 June 2020.

2.Tax saving investments/ payments / donation

Specified investment / payments (such as investment in Public Provident Fund, Life Insurance payments etc.) or donation to avail deductions from income for FY 2019-20 was to be made till 31 March 2020. Now these investments / payments to avail deductions from income for FY 2019-20 can be made till 30 June 2020.

3.Aadhaar-PAN linking

Aadhaar was to be linked with PAN by 31 March 2020. Else, PAN would have been inoperative. The due date to link Aadhaar and PAN is now extended to 30 June 2020.

4.Reduction of rate of interest on delayed payment of tax:

Where any taxes are due to be paid between 20 March to 29 June under the Act and if such taxes are paid by 30 June 2020 then the interest on delayed payment of such taxes will be levied at 0.75 percent per month (or part of the month) instead of 1 percent per month (or part of the month). 

5.Lower / Nil withholding certificates:

-An individual is required to obtain certificate from the tax authorities for tax withholding on certain incomes at lower or NIL rate. The certificate needs to be obtained by making application to the tax department at the beginning of every FY. Considering the current situation, the certificates held for FY 2019-20 shall be valid till 30 June 2020 pending grant of approval by the tax department for a new certificate for FY 2020-21. 

6.Withdrawal from Provident Fund (PF)

Employees Provident Fund Organisation (EPFO) has allowed employees to obtain a non-refundable advance from their existing PF balances while in service. The amount of advance shall be lower of 3 months’ Basic and Dearness Allowances or 75 percent of the balance in PF account. Also, it is clarified that this amount being advance, will not be taxable.

7.Issue of refund

In a press note on 8 April 2020, it was declared that to provide immediate relief to business and individuals, all pending income-tax refunds up to Rs.5 lakh shall be released immediately.

8.Vivad Se Vishwas Scheme (VSV Scheme)

“Vivad se vishwas scheme has been extended till 30th June 2020 due to covid19 in India.

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