You can claim 100% tax deduction on donation towards PM CARES Fund

The Covid-19 crisis has impacted not just India but the entire global economy. Amid this global economic downturn and with countries under lockdown, people are trying their best to handle work and other responsibilities from home. To offer them support in this scenario, the government has provided relief and extensions in deadlines for statutory compliances. Extension of due dates: The due date to file a belated return and a revised return for Financial Year (FY) 2018-19 has been extended from March 31, 2020 to June 30, 2020. Accordingly, an individual taxpayer who has not filed his income return for FY 2018-19, or who wishes to revise a return that has already been filed, can now file or revise the return on or before June 30, 2020. Further, the due dates for “furnishing returns and filing statements by employer” falling within the period March 20, 2020 and June 29, 2020, has now been extended to June 30, 2020. Hence, the due date for filing of ETDS returns for the fourth quarter, which fall within this period, also stands extended. One can therefore expect delays in issue of Form 16/12BA for FY2019-20. Due date for linking PAN-Aadhaar extended: It is mandatory to obtain Aadhaar number in India (subject to exceptions) and mention it in the tax return form at the time of filing the tax return. Also, according to income tax laws, it is mandatory to link the PAN number with Aadhaar number. The deadline for linking PAN with Aadhaar was March 31, 2020, failing which the PAN number would have become inoperative. Due to the Covid-19 situation, this deadline has been extended until June 30, 2020. ALSO READ: Women Jan Dhan account holders to receive 2nd installment from Mon: FinMin Tax-saving investments: An individual is required to make tax-saving investments in order to claim a tax deduction (for example, investment in Public Provident Fund, ELSS, etc.) on or before March 31 of the respective financial year. Quite often, individuals end up making these investments in the month of March itself. On account of the lockdown in most parts of India during March 2020, it was difficult for individuals to make investments. Hence, the government has extended this deadline of March 31 till June 30, 2020.

Consequently, an individual can make an investment on or before June 30, 2020 and claim a tax deduction for FY 2019-20. Care should be taken to ensure that a deduction for this investment is not claimed in FY 2020-2021 as well.