Coronavirus fear: Govt issues ordinance, 100% tax rebate for PM-CARES Fund

The government on Tuesday brought in an Ordinance to give effect to various reliefs measures, including extended deadline for filing income tax, customs and central excise returns, to help taxpayers tide over the coronavirus crisis.

The "Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020" got assent of the President on Tuesday.

The Ordinance also amended the provisions of the Income Tax Act to provide the same tax treatment to PM-CARES Fund as available to the Prime Minister's National Relief Fund.

"Therefore, the donation made to the PM CARES Fund shall be eligible for 100 per cent deduction under section 80G of the IT Act. Further, the limit on deduction of 10 per cent of gross income shall also not be applicable for donation made to PM CARES Fund," an official statement said.

With the promulgation of the Ordinance, the last date for filing income tax returns for 2018-19 as well as that for linking PAN with biometric ID Aadhaar has been extended by three months to June 30.

The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim),80G (Donations), etc. has been extended to June 30, 2020. Hence, the investment/payment can be made up to June 30, 2020, for claiming the deduction under these sections for FY2019-20.

Also, the last date for furnishing of the central excise returns due in March, April and May 2020 has been extended to June 30, 2020.

"The govt has brought in an Ordinance on March 31 which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the rules or notification which are prescribed/ issued under these Acts," an official statement said.