India – COVID-19: Tax Relief Measures
India – COVID-19: Tax Relief Measures
India has enacted Ordinance 2020 delaying the deadlines for certain tax payments to bring relief to individuals and businesses dealing with the effects of the spread of COVID-19 in India.
India has enacted several relief measures in response to the economic conditions resulting from the coronavirus (COVID-19) pandemic, including extending the time to file tax returns and pay tax to 30 June 2020.1
WHY THIS MATTERS
The tax measures contained in Ordinance 2020 are intended to bring relief to individuals and businesses as they deal with the economic and financial effects of the spread of COVID-19 in India. Delaying the deadlines for certain tax payments should offer certain individual and business taxpayers opportunities to preserve their cash-flow and provide additional time to organise their tax and financial affairs and meet their compliance obligations in this difficult period.
Due Date Extensions
On 31 March 2020, the President promulgated The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020. The tax relief measures include the following:
- Postponing the income tax return deadline for the 2018-2019 tax year to 30 June 2020 (extended from 31 March 2020);
- The due date/time limits between 20 March 2020 and 29 June 2020 have been extended to 30 June 2020, under legislation addressing direct taxes;
- A reduced rate of interest for delay in making certain tax payments due during the period 20 March 2020 to 29 June 2020, but paid on or before 30 June 2020, and a waiver of late-filing penalties.
FOOTNOTE
1 The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (31 March 2020); see also Press Information Bureau Release (24 March 2020). For more information, also see the Press Information Bureau’s Ministry of Finance 31 March 2020 press release at: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1609734 .
RELATED RESOURCE
Adapted, with permission, from Tax Flash News “The Finance Minister announces several relief measures in view of Covid-19 outbreak” (24 March 2020), and Tax Flash News “President promulgates the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020” (1 April 2020). Tax Flash News is published by the KPMG International member firm in India.
VIEW ALL
The information contained in this newsletter was submitted by the KPMG International member firm in India.
SUBSCRIBE
To subscribe to GMS Flash Alert, fill out the subscription form.
© 2021 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
