Determination of Residential Status CBDT Circular No 11 of 2020 May 8, 2020
In order to determine the residential status of an individual for the FY 2019-20, who has come to India on a visit before March 22, 2020 and could not leave before March 31, 2020; the days as mentioned below shall be ignored:
• who have not been able to leave India on or before March 31, 2020, the days between March 22, 2020 to March 31, 2020 OR
• Who have been quarantined in India on account of COVID-19 on or after March 01, 2020 until the date of departure on an evacuation flight or until March 31, 2020 as the case may be OR
• Who have departed on an evacuation flight on or before March 31, 2020, their stay in India during the period from March 22, 2020 to March 31, 2020
The CBDT has also issued a press release stating that, as the lockdown continues in FY 2020-21, CBDT will issue a separate circular for determination of residential status for the FY 2020-21.
Atmanirbhar Bharat Abhiyan Measures announced in India’s fight against COVID-1913 May 2020
The Prime Minister on May 12, 2020 addressed the nation and announced an economic package of Rs 20 lakh crore for the people of India under ‘Atmanirbhar Bharat Abhiyan’ in view of COVID-19 outbreak. The income tax relief measures announced in this package are as follows:
• All pending refunds to charitable trusts and non-corporate businesses & professions (including proprietorship, partnership, LLP and Co operatives) to be issued immediately.
• The TDS rates (except salary) for specified payments made to residents and the TCS rates for the specified receipts to be reduced by 25%. These reduced rates to apply from May 14, 2020 to March 31, 2021. (Refer Annexure 1 for revised rates). However, no reduction in rates shall be done where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar.
• The Due date for filing income tax returns for Financial Year 2019 20 extended from July 31, 2020 / October 31, 2020 to November 30, 2020.
• The due date of Tax Audit for Financial Year 2019-20 has been extended from September 30, 2020 to October 31, 2020.
• The time period for making payment without additional amount, under Vivad se Vishwas Scheme, to be extended to December 31, 2020.
Relaxation to taxpayers from providing prescribed electronic modes of payment CBDT Circular No 12 of 2020 May 20, 2020
Section 269SU of the Income Tax Act, 1961 was introduced for the promotion of digital payments and cashless economy. The section requires every person with a business turnover, sales or gross receipts exceeding Rs. 50 crores in immediate preceding year to mandatorily provide facilities for accepting payments through prescribed electronic modes. The CBDT vide its Notification dated December 30, 2019 has prescribed 3 electronic modes, which needs to be mandatorily provided from January 01, 2020. The prescribed modes of electronic payment are as under-
• Debit Card powered by RuPay;
• Payments Interface (UPI) (BHIM-UPI); and
• Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
To avoid administrative inconvenience and additional cost for the B2B businesses, which generally receive the payments through NEFT or RTGS, the CBDT has clarified that, the provisions of section 269SU of the Act shall not be applicable to businesses having only B2B transactions (i.e no transaction with retail customer/consumer) if at least 95% of aggregate amount received during the previous year was through any mode other than cash.
Atmanirbhar Bharat Abhiyan Measures announced in India’s fight against COVID-19 13 May 2020
• Date of assessments getting barred on September 30, 2020 extended to December 31, 2020 and those getting barred on March 31, 2021 extended to September 30, 2021.
• Summary of new due dates:
Due Dates-June 2020
Revised TDS and TCS rates applicable from May 14, 2020 to March 31, 2021