Q1. What is the point of this Resolution Framework? Answer: The main aim of this resolution fra...
The current FY 2019-2020 closed on March 31 as usual, and the new financial year 2020-21started from April 1, 2020. The Government on analysing the lockdown situation, which was declared to check the spread of coronavirus, had already extended the deadline for filing income tax returns for 2018-2019 as well as increased the date for linking PAN with Aadhar three months to June 30. New Income tax updates have been announced by the Government.
Here is a list of latest income tax updates and all the related notifications and announcements made by the Government:
In the ongoing COVID-19 circumstances and to provide immediate relief to the business entities and individuals, the Ministry of Finance announced that:
Due to the spread of the pandemic, the Government has relaxed specific provisions, including the extension of the time limit in the taxation and other laws. The following amendments are introduced through this ordinance:
Section 115BAA was inserted in the Income Tax Act 1961, which provided for a reduced corporate tax rate of 22% from FY 2019-21 onwards for such domestic companies follow certain specified conditions. The income tax department has introduced Form no. 10-IC, which will be filed by the domestic companies as prescribed under section 115BAA to avail the benefit of lower taxes from Financial Year 2019-20 and onwards. This form will be submitted electronically and verified with the digital signature or EVC. Similarly, Section 115BAB was inserted to offering a reduced tax rate of 15% to the new domestic manufacturing companies. A new Form no. 10-ID was also introduced in this notification. The specific companies under section 115BAB need to file this form to avail of the lower tax rates from FY 2019-20 and onwards. This form will be electronically verified using a digital signature or an EVC.
Individuals should assess their compliance obligation and see if there is any compliance they can manage through the e-filing or online mechanisms or which can be complied within the extended timelines. In the meantime, when the Government is taking steps to relieve the burden for taxpayers, it is the liability of each taxpayer to fulfill their tax obligation in a timely manner on priority. In India now, almost all the tax compliances can be discharged online. Thus, the taxpayers should ensure to comply with all key tax compliances to avoid any issues or penal consequences at a later date. The Ministry of Finance to make the people aware releases many new income tax updates regularly.
Read, Also: How to Claim Income Tax Refund Online?.