Parliament passes bill providing relief to taxpayers on compliance front

The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020, was promulgated in March.

Parliament on Tuesday gave its approval to a taxation bill that seeks to provide various reliefs in terms of compliance requirements for taxpayers amid the coronavirus pandemic.

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, which seeks to replace an ordinance and make few other changes in direct and indirect tax laws, was returned by a voice vote in Rajya Sabha. The bill was returned amid several opposition parties boycotted the House proceedings protesting suspension of eight members.

The Lok Sabha had cleared the bill on September 19.

The reliefs in the bill include extending deadlines for filing returns and for linking PAN and Aadhaar.

It also provides tax benefits on donation made to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) set up in March in the wake of the pandemic.

The Bill amends 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.

The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020, was promulgated in March.

Replying to a short debate on the bill, Finance Minister Nirmala Sitharaman said the ordinance was necessary to defer various compliance deadlines under GST and Income Tax (I-T) Act during the COVID-19 times.

She said as a bill was being brought to replace the ordinance, the government incorporated other matters like facilitating investment in IFSC Gift City.

The bill seeks to make faceless assessment applicable to at least eight processes under the I-T Act, including for collection and recovery of tax and gathering of information.

Also, the bill amends the Finance Act, 2020 to clarify with regard to capping of surcharge at 15 per cent on dividend income of the Foreign Portfolio Investor.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel