The Taxation And Other Laws (Relaxation And Amendment Of Certain Provisions) Act, 2020 has been passed by Lok Sabha. The said Act seeks to replace the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 and make certain amendments in Income Tax Act, 1961.
Key points of the amendment made in Income Tax Act, 1961 are:
1. The exemption to the fund or trust or institution or university or other educational institution or hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C) of the Income Tax Act, 1961 shall not be available to it unless it makes an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval within three months from the 1st day of April, 2021 which has earlier been deferred to 1st day of October, 2020 as against 1st day of June, 2020.
2. Section 12 AB of the Income Tax Act, 1961 relating to procedure for fresh registration of trusts has been further deferred to be applicable from 1st day of April, 2021 instead of 1st day of October, 2020.
3. The fifth and sixth provision to clause iv of Section 35 of the Income Tax Act, 1961 relating to expenditure on scientific research, requiring research associations, university colleges, scientific research companies and other institutions to make an intimation (in order to avail the exemption) in the prescribed manner to the prescribed income-tax authority within 3 months of such a provision coming into effect shall now be effective from 1st day of April, 2021 instead of 1st day of October, 2020 and that the notification will remain valid for a period of five Assessment Years commencing on or after 1 April 2022.
4. The clause viii of sub section 5 of Section 80G of the Income Tax Act, 1961 relating to Deduction in respect of donations to certain funds, charitable institutions, etc., that requires the donee to prepare and file such statement setting forth particulars of donations received within specified timelines and furnishing certificates to the donors in such manner as prescribed will be effective from 1st day of April, 2021 as against 1st day of June, 2020.
5. After Section 197A a new Section 197B relating to Lower deduction in certain cases for a limited period has been proposed to be inserted to provide that deduction of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021 shall be made at the rate being the three-fourth of the rate specified.
6. In Section 206C a new sub section 10A has been inserted to provide that the requirement to collect tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, shall be made at the rate being the three-fourth of the rate specified.
7. New sections under Income Tax Act, 1961 has been proposed to be inserted to legislate and support faceless assessment scheme which shall come into effect from the 1st day of November 2020 which are as follows:
a) Section 130 [Faceless jurisdiction of income-tax authorities]
b) Section 135A [Faceless collection of information]
c) Section 142B [Faceless inquiry or Valuation]
d) Sub-section (8) to Section 92CA [Reference to TPO]
e) Sub-section (14B) in Section 144C [Reference to DRP]
f) Section 151A [Faceless assessment of income escaping assessment]
g) Section157A [Faceless rectification, amendments and issuance of notice or intimation]
h) Section 231 [Faceless collection and recovery of tax.]
i) Section 264A [Faceless revision of orders]
j) Section 264B [Faceless effect of orders]
k) Section 293D [Faceless approval or registration]
l) Sub section 8 of Section 253 [Appeal to ITAT]
m) Sub section 4 of Section 279 [Prosecution and Compounding of Offenses]
For further details refer the attached document.
Source: Lok Sabha Secretariat
