Changes introduced in the new tax regime by the government

The new tax regime of reduced income tax rates was introduced on 1st April 2020. Under the new regime, if a taxpayer selects the option, all allowances and perquisites are treated as taxable components. However, in June 2020, the government relaxed the rules of taxability to help the employees and ease their tax burden.

CBDT has further clarified the new rule (Section 10 read with Rule 2 BB) will allow certain exemptions to  employees. These include any allowance granted to meet the cost of travel on tour or on transfer, any allowance, whether granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

Please note: The travel/conveyance allowance for handicapped employee will continue to be exempt at Rs.3200 per month.

Form 16 and other important due date extension

In the light of COVID 19 and current socio-economic changes, government has issued notification extending a few statutory due dates to help companies and reduce genuine hardship faced by them.

The following are the changes made to the due dates:

  • TDS return for FY 2019-20 (Q4):  31 July 2020 (earlier, the same was 31 May 2020)
  • Form 16 certificate issuance for FY 2019-20: 15 August 2020 (earlier, the same was 15 June 2020)
  • Income Tax personal return filing for FY 2019-20: 30 November 2020 (earlier, the same was 31 July 2020)
  • Income Tax personal return filing for FY 2018-19: 31 July 2020 (earlier, the same was 31 March 2020)
  • Aadhaar-PAN linking: 31 March 2021 (earlier, the same was 31 March 2020)
  • Vivad se Vishwas: 31 December 2020 (earlier, the same was 31 March 2020)
  • Submitting and claiming Chapter VI A deduction under Section 80C, 80D, 80G for FY 2019-20:  31 July 2020 (earlier, the same was 31 March 2020)
  • As per press release on 24 March 2020, reduced rate of interest was to be applied for any delayed payment of taxes (TDS). However, please note that the same shall not be applicable for the payment made after 30 June 2020.
  • The company can now submit their audit report for FY 2019-20 on or before the 31 October 2020.

To read further: 

Additional details required to generating Insured Person (IP) Number under Employee State Insurance Scheme (ESIC)

As per the latest circular, Employers are required to update mobile numbers and bank account details of existing employees registered under the ESI Scheme.

Please note: 

All Cash benefits/Claim reimbursements (for as hospitalization and related monetary benefits) will be settled only if the correct bank account details of the beneficiary are available in the system.

These changes will be effected from 1 July 2020.

To read further please refer the official notification:

Change of process for deposition of LWF contribution for Haryana

The Haryana Labour Welfare Board will accept manual submission and/ or remittance of contribution details up to the 30 June 2020. Thus, from the 1 July, 2020, only online deposition of Labour Welfare Fund (contribution only) would be accepted. Please process with the new LWF procedure accordingly.

Extension Of Due Date for Filing Returns under The Maharashtra State Tax On Professions, Trade, Callings And Employments Act, 1975

The department has allowed the employers to submit their return under the said act on or before the 31 July 2020 without any late fee.

In case there is any tax due, or interest payable up to the month of June 2020, the same shall be paid before filing of return.

To avail the exemption of late fee in respect of the return up to June 2020, the following conditions must be fulfilled:

  • Return specified in column (C) shall be filed on or before the 31 July 2020.
  • Tax payable as per return, referred to in column (C) shall be paid before filing of return.
  • Interest under sub-section (2) of section 9 on tax payable as per return specified in column (C) shall be paid before filing of return.

Karnataka Professional tax remittance and return due date extended

In order to help companies and business owners, the PT remittance and return due date has been extended as below:

Description Actual due date Extended due date order
March 2020 payment and return
20 April 2020 20 May 2020
Enrolled person/Employer Enrollment certificate renewal FY 2020-2021 30 April 2020 30 May 2020

Monthly Calendar

Particulars Due Date
TDS payment for June 7 July 2020
TDS return for Jan-Mar
31 July 2020
Form 16 for FY 2019-20 15 August 2020
Belated ITR for individual for FY 2018-19 31 July 2020
Provident Fund
Particulars Due Date
Payment for June 15 July 2020
Employee State Insurance
Particulars Due Date
Payment for June 15 July 2020
Professional Tax
State Payment Due Date
Andhra Pradesh, Madhya Pradesh & Telangana 10 July 2020
Assam, Odisha, Maharashtra 30 July 2020
Gujrat 15 July 2020
Karnataka 20 July 2020
West Bengal  21 July 2020
Labour Welfare Fund (LWF)
State Payment Due Date
Kerala (For S&E)- (Worker Welfare Fund) 5 July 2020

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