On Saturday, Lok Sabha passed a taxation bill that will provide relaxation in various terms of compliance requirements for taxpayers between the coronavirus pandemic. In this bill there will be a relaxation on extending deadlines for filing returns and for linking PAN and Aadhaar Card.
The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020, issued in March will replace by The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020.
Apart from this, taxation bill will give tax exemption to those contributors who contributed in Pradhanmantri Cares Fund, which was launched in March in the wake of the coronavirus pandemic.
While introducing this bill alot of discussion held in replying to the debate on the bill Finance Minister Nirmala Sitharaman said that the ordinance was essential to avoid various compliance deadlines under GST and Income Tax (I-T) Act during the Corona crisis.
Further, the bill seeks to make faceless assessment applicable to at least eight processes under the GST and Income Tax(I-T )Act, including for collection and recovery of tax and gathering of information.
Further Nirmala Sitharaman said that In order to maintain transparency in tax administration, we are putting it in law. This bill will useful for future.
On 31st March, 2020 The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 was promulgated . The Ordinance provides certain relief related to compliance, such as extension of time limit and waiver of 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 Ordinance provides these relaxations in view of spread of the coronavirus pandemic in India.