Government has notified the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 after it received the assent of the President on 29.09.2020. The Bill was passed by the Parliament in September 2020.
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 aims to provide relief from various compliances under certain ‘specified Acts’ including Income Tax Act, 1961 and further provides relaxation in the payment of interest due to delay in the payment of taxes. It further provides for immunity from penalty and prosecution if there is any delay in the payment of taxes for the specified period if the same is paid within the prescribed date.
This Act has replaced The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020 which was promulgated on 31 March 2020 in order to ease the compliance burden on taxpayers due to outbreak of COVID-19 and further amends Income-tax Act, 1961, Central Goods and Services Tax Act, 2017, Finance (No. 2) Act, 2019, the Direct Tax Vivad se Vishwas Act, 2020 and the Finance Act, 2020.
Read Also: Key Highlights of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
Soon after the promulgation of Ordinance, further relaxation was provided in terms of all the compliances by issuing to Notifications- Notification No. 35/2020 dated 24.06.2020 (including a corrigendum Notification No. 39/2020 dated 29.06.2020) and Notification 56/2020 dated 29.07.2020.
This Act ratifies the extensions and reliefs provided through the Ordinance and Notifications. The Taxation Act does not provide any further relief or extension to taxpayers in relation to timelines for various compliances.
When the Monsoon session of the Parliament was started on September 14, 2020, the Finance Minister Nirmala Sitaraman introduced the Bill on 18-9-2020 which was subsequently passed in Lok Sabha on 19-09-2020 after discussion. The Rajya Sabha passed the same on 22-09-2020 by a voice vote.
The President of India has given his assent on 29.09.2020 and finally, on the same day, it was notified to become Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.
A 6-page Ordinance is now a 40-page Act mainly due to amendments in the Income Tax Act, 1961.
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has 8 Chapters as mentioned below-
President of India has given his assent to the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 on 29.09.2020 after which the same is notified by the Ministry of Law and Justice. The Act shall come into force from 31st day of March 2020. The Act has incorporated all the provisions of the Ordinance and the two notifications issued thereunder. Apart from the provisions of the Ordinance, the Act has also amended various other provisions of the Income Tax Act, 1961 including amending section 12AB - new registration procedure for Trusts and Institutions, faceless assessment and other various faceless proceedings.
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