AMENDMENTS MADE BY TAXATION AND OTHER LAWS ( RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS ACT, 2020
(A) Effective 1st April 2020
1. Section 10(23C) allowing income of certain NGOs to be tax exempt.
(B). Effective 14th May 2020.
1. Section 197B inserted allowing lower deduction of TDS for a limited period.
2. Section 206C has streamlined the procedure in conformity with FEMA etc in relation to Collection and Recovery of Tax at Source by inserting new sub sections 1G to 1J to section 206C.
(C) Effective 1st June 2020
1. Sections 10(23C) in relation to the certain incomes of certain NGOs.
2. Sections 11, 12A, 12AA and 12AB in relation to certain Charitable and Religious Trusts etc
3. Section 35 in relation to Expenditure on scientific research.
4. Sections 56(2)(v), 56(2(vi), 56(2)(vii) and 56(2)(x) in relation to certain deemed income from other sources.
5. Section 80G is amended for allowability of certain donations allowed under that section.
6. Section 115BBDA amended in relation to certain dividends received from domestic Companies
7. Section 115TD pertaining to Tax on accreted income.
8. Section 253 regarding appeals to IT Appellate Tribunal amended by inserting certain words.
9. Section 271K pertaining to penalty for failure to furnish certain statements, etc omitted.
( D). Effective 1st November 2020 following sections amended.
1. Section 35AC expenditures on eligible projects and schemes has been modified.
2. In Section 92CA pertaining to Transfer Pricing Officer three new subsections (8),(9) and (10) inserted.
3. New section 130 inserted for incorporating Faceless Jurisdiction of Income Tax Authorities
4. Sections 133A regarding power of survey 133C regarding power to call for information amended.
5. Two new Section 135A regarding Faceless collection of information and Section 142B regarding Faceless inquiry or Valuation are added to the Income tax Act.
6. In Section 144C pertaining to dispute resolution panel three new sub sections namely (14B), (14C) and (14D) have been inserted.
7. Four new sections 151A regarding Faceless assessment of income escaping assessment and section 157A regarding Faceless rectification, amendments and issuance of notice or information, section 196D( (1D) regarding income of Foreign Institutional Investors from Securities and Section 231 Faceless Collection and recovery of Tax are inserted.
8. New subsections (8),(9) and (10) in Section 253 on Appeal to Income Tax Tribunal, in Section 263 regarding Revision of Orders Prejudicial to Revenue two new Explanations and in Section 264 certain new words are inserted.
9. Three new Sections namely 264A for Faceless revision of other orders and 264B for Faceless effect of orders, sub sections (4),(5) and (6) in section 279 regarding Prosecution to be at the instance of Principal Chief Commissioner, etc and a new section 293D Faceless approval or Registration are inserted.
(E). Although the following amendments will technically start operating w.e.f. 1st April 2021 ( Assessment Year 2021-22 ) but these pertain to ( are applicable to) the Financial Year 2020-21
1. Section 6 pertaining to Residence in India amended
2. Section exempt income under section 10(4D) pertaining to certain income accruing to International Financial Service Centre
3. Certain part of section 10(23C) pertaining to income of certain NGOs shall be operational
4. A new section 10(23FBC) pertaining to a unit holder from a specified fund and 10(FE) pertaining to some specified entities.
5. Some of the Provisions of the amended Section 11, 12A, 12AA, 12AB and 13
6. Part of section 35 mentioned above
7. Certain part of the sections 56, 80G, 115AD , 115BBDA, 115JEE, 115TD have already become operative
8. Sections 143 pertaining to assessment has been made redundant henceforth.
9. Section 144B has been inserted incorporated new Faceless Assessment Procedures
10. Part of subsection 253 mentioned above shall also apply henceforth
11. A new Section 271K pertaining to new methodology for levying penalty has been inserted.
Navin Mehta & Associates