Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

Insertion of new section “12AB” (VI) section 12AB shall be omitted and shall be deemed to have been omitted with effect from the 1st day of June, 2020; (VII) after section 12AA, the following section shall be inserted with effect from he 1st day of April, 2021, namely:— “12AB.Procedure for fresh registration– (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,— (a)   where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five years; (b)   where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of the said clause,— (i)   call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about— (A)   the genuineness of activities of the trust or institution; and (B)   the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii)   after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),— (A)   pass an order in writing registering the trust or institution for a period of five years; or (B)   if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; (c)   where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the trust or institution. (2) All applications, pending before the Principal Commissioner or Commissioner on which no order has been passed under clause (b) of sub-section (1) of section 12AA before the date on which this section has come into force, shall be deemed to be applications made under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A on that date. (3) The order under clause (a), sub-clause (ii) of clause (b) and clause (c), of sub-section (1) shall be passed, in such form and manner as may be prescribed, before expiry of the period of three months, six months and one month, respectively, calculated from the end of the month in which the application was received. (4) Where registration of a trust or an institution has been granted under clause (a) or clause (b) of sub-section (1) and subsequently, the Principal Commissioner or Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution after affording a reasonable opportunity of being heard. (5) Without prejudice to the provisions of sub-section (4), where registration of a trust or an institution has been granted under clause (a) or clause (b) of sub-section (1) and subsequently, it is noticed that— (a)   the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13; or (b)   the trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality, then, the Principal Commissioner or the Commissioner may, by an order in writing, after affording a reasonable opportunity of being heard, cancel the registration of such trust or institution.”;

Amendment of section 12AA (a) sub-section (5) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of June, 2020;(b) after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 2021, namely:— “(5) Nothing contained in this section shall apply on or after the 1st day of April, 2021

Amendment of section 12A a)   in sub-section (1),— (i)   with effect from the 1st day of June, 2020, clause (ac) shall be omitted and shall be deemed to have been omitted; (ii)   with effect from the 1st day of April, 2021, after clause (ab), the following clause shall be inserted, namely:— “(ac)   notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution,— (i)   where the trust or institution is registered under section 12A [as it stood immediately before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] or under section 12AA [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020], within three months from the 1st day of April, 2021; (ii)   where the trust or institution is registered under section 12AB and the period of the said registration is due to expire, at least six months prior to expiry of the said period; (iii)   where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; (iv)   where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v)   where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification; (vi)   in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought,     and such trust or institution is registered under section 12AB;”; (b)   in sub-section (2),— (A)   with effect from the 1st day of June, 2020,— (i)   the first proviso shall be omitted and shall be deemed to have been omitted; (ii)   in the second proviso, for the words, figures and letters “Provided further that where registration has been granted to the trust or institution under section 12AA or section 12AB”, the words, figures and letters “Provided that where registration has been granted to the trust or institution under section 12AA” shall be substituted and shall be deemed to have been substituted; (iii)   in the third proviso, for the words “provided also”, the words “provided further” shall be substituted and shall be deemed to have been substituted; (iv)   in the fourth proviso, for the words, figures and letters “section 12AA or section 12AB”, the word, figures and letters “section 12AA” shall be substituted and shall be deemed to have been substituted; (B)   with effect from the 1st day of April, 2021,— (i)   in the first proviso, for the words figures and letters “Provided that where registration has been granted to the trust or institution under section 12AA”, the following shall be substituted, namely:—     “Provided that the provisions of sections 11 and 12 shall apply to a trust or institution, where the application is made under— (a)   sub-clause (i) of clause (ac) of sub-section (1), from the assessment year from which such trust or institution was earlier granted registration; (b)   sub-clause (iii) of clause (ac) of sub-section (1), from the first of the assessment year for which it was provisionally registered:     Provided further that where registration has been granted to the trust or institution under section 12AA or section 12AB”; (ii)   in the second proviso, for the words “Provided further”, the words “Provided also” shall be substituted; (iii)   in the fourth proviso, for the word, figures and letters “section 12AA”, the words, figures and letters “section 12AA or section 12AB” shall be substituted;

Amendment of section 11 in sub-section (1), in Explanation 2, after the word, figures and letters “section 12AA”, the words, figures and letters “or section 12AB, as the case may be” shall be inserted with effect from the 1st day of April, 2021; (b)   in sub-section (7),— (i)   for the words, figures and letters “under section 12AA or section 12AB”, the words, brackets, letters and figures “under clause (b) of sub-section (1) of section 12AA” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2020; (ii)   for the words, brackets, letters and figures “under clause (b) of sub-section (1) of section 12AA”, the words, figures and letters “under section 12AA or section 12AB” shall be substituted with effect from the 1st day of April, 2021; (iii)   in the second proviso,— (A)   with effect from the 1st day of June, 2020, for the words, figures and letters “under section 12AB”, the words, figures and letters “under section 12AA,” shall be substituted and shall be deemed to have been substituted; (B)   with effect from the 1st day of April, 2021, after the words, figures and letters “under section 12AA”, the words, figures and letters “or section 12AB” shall be inserted;

Amendment of section 10 (a)   in clause (4D), with effect from the 1st day of April, 2021,— (i)   for the words “convertible foreign exchange, to the extent such income accrued or arisen to, or is received in respect of units held by a non-resident”, the words and brackets ‘convertible foreign exchange or as a result of transfer of securities (other than shares in a company resident in India) or any income from securities issued by a non-resident (not being a permanent establishment of a non-resident in India) and where such income otherwise does not accrue or arise in India or any income from a securitisation trust which is chargeable under the head “profits and gains of business or profession”, to the extent such income accrued or arisen to, or is received, is attributable to units held by non-resident (not being the permanent establishment of a non-resident in India) computed in the prescribed manner’ shall be substituted; (ii)   in the Explanation, after clause (b), the following clauses shall be inserted, namely:— ‘(ba)   “permanent establishment” shall have the same meaning assigned to it in clause (iiia) of section 92F; (bb)   “securities” shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and shall also include such other securities or instruments as may be notified by the Central Government in the Official Gazette in this behalf; (bc)   “securitisation trust” shall have the same meaning assigned to it in clause (d) of the Explanation to section 115TCA;’; (b)   in clause (23C),— (i)   in sub-clause (i), after the word “Fund”, the words and brackets “or the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2020; (ii)   for the first and second provisos,— (A)   with effect from the 1st day of June, 2020, the following provisos shall be substituted and shall be deemed to have been substituted, namely:—     “Provided that the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via):     Provided further that the prescribed authority, before approving any fund or trust or institution or any university or other educational institution or any hospital or other medical institution, under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), may call for such documents (including audited annual accounts) or information from the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as it thinks necessary in order to satisfy itself about the genuineness of the activities of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, and the compliance of such requirements under any other law for the time being in force by such fund or trust or institution or any university or other educational institution or any hospital or other medical institution, as the case may be, as are material for the purpose of achieving its objects and the prescribed authority may also make such inquiries as it deems necessary in this behalf:”; (B)   with effect from the 1st day of April, 2021, the following provisos shall be substituted, namely:—     “Provided that 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), under the respective sub-clauses, shall not be available to it unless such fund or trust or institution or university or other educational institution or hospital or other medical institution makes an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval,— (i)   where such fund or trust or institution or university or other educational institution or hospital or other medical institution is approved under the second proviso [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain provisions) Act, 2020], within three months from the 1st day of April, 2021; (ii)   where such fund or trust or institution or university or other educational institution or hospital or other medical institution is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (iii)   where such fund or trust or institution or university or other educational institution or hospital or other medical institution has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; (iv)   in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought,     and the said fund or trust or institution or university or other educational institution or hospital or other medical institution is approved under the second proviso:     Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,— (i)   where the application is made under clause (i) of the said proviso, pass an order in writing granting approval to it for a period of five years; (ii)   where the application is made under clause (ii) or clause (iii) of the said proviso,— (a)   call for such documents or information from

Amendment of section 6 In the Income-tax Act, 1961,— (I)   in section 6, with effect from the 1st day of April, 2021,— (a)   in clause (1), in Explanation 1, in clause (b), for the words “the citizen or person of Indian origin”, the words “such person” shall be substituted; (b)   in clause (1A), the following Explanation shall be inserted, namely:—     “Explanation.—For the removal of doubts, it is hereby declared that this clause shall not apply in case of an individual who is said to be resident in India in the previous year under clause (1).”; (c)   in clause (6), in the Explanation, the words “and which is not deemed to accrue or arise in India.” shall be added at the end;

Relaxation of certain provisions of specified Act (1) Where, any time-limit has been specified in, or prescribed or notified under, the specified Act which falls during the period from the 20th day of March, 2020 to the 31st day of December, 2020, or such other date after the 31st day of December, 2020, as the Central Government may, by notification, specify in this behalf, for the completion or compliance of such action as— (a)   completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval, or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the specified Act; or (b)   filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record, by whatever name called, under the provisions of the specified Act; or (c)   in case where the specified Act is the Income-tax Act, 1961 (43 of 1961),— (i)   making of investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purposes of claiming any deduction, exemption or allowance under the provisions contained in— (I)   sections 54 to 54GB, or under any provisions of Chapter VI-A under the heading “B.—Deductions in respect of certain payments” thereof; or (II)   such other provisions of that Act, subject to fulfilment of such conditions, as the Central Government may, by notification, specify; or (ii)   beginning of manufacture or production of articles or things or providing any services referred to in section 10AA of that Act, in a case where the letter of approval, required to be issued in accordance with the provisions of the Special Economic Zones Act, 2005 (28 of 2005), has been issued on or before the 31st day of March, 2020,     and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance of such action shall, notwithstanding anything contained in the specified Act, stand extended to the 31st day of March, 2021, or such other date after the 31st day of March, 2021, as the Central Government may, by notification, specify in this behalf:     Provided that the Central Government may specify different dates for completion or compliance of different actions:     Provided further that such action shall not include payment of any amount as is referred to in sub-section (2):     Provided also that where the specified Act is the Income-tax Act, 1961 (43 of 1961) and the compliance relates to— (i)   furnishing of return under section 139 thereof, for the assessment year commencing on the— (a)   1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted; (b)   1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of November, 2020” had been substituted; (ii)   delivering of statement of deduction of tax at source under sub-section (2A) of section 200 of that Act or statement of collection of tax at source under sub-section (3A) of section 206C thereof for the month of February or March, 2020, or for the quarter ending on the 31st day of March, 2020, as the case may be, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “15th day of July, 2020” had been substituted; (iii)   delivering of statement of deduction of tax at source under sub-section (3) of section 200 of that Act or statement of collection of tax at source under proviso to sub-section (3) of section 206C thereof for the month of February or March, 2020, or for the quarter ending on the 31st day of March, 2020, as the case may be, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st day of July, 2020” had been substituted; (iv)   furnishing of certificate under section 203 of that Act in respect of deduction or payment of tax under section 192 thereof for the financial year commencing on the 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “15th day of August, 2020” had been substituted; (v)   sections 54 to 54GB of that Act, referred to in item (I) of sub-clause (i) of clause (c), or sub-clause (ii) of the said clause, the provision of this subsection shall have the effect as if— (a)   for the figures, letters and words “31st day of December, 2020”, the figures, letters and words “29th day of September, 2020” had been substituted for the time-limit for the completion or compliance; and (b)   for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “30th day of September, 2020” had been substituted for making such completion or compliance; (vi)   any provisions of Chapter VI-A under the heading “B.— Deductions in respect of certain payments” of that Act, referred to in item (I) of sub-clause (i) of clause (c), the provision of this sub-section shall have the effect as if— (a)   for the figures, letters and words “31st day of December, 2020”, the figures, letters and words “30th day of July, 2020” had been substituted for the time-limit for the completion or compliance; and (b)   for the figures, letters and words “31st day of March, 2021”, the figures, letters and words “31st

Definitions (1) In this Act, unless the context otherwise requires,— (a)   “notification” means the notification published in the Official Gazette; (b)   “specified Act” means— (i)   the Wealth-tax Act, 1957 (27 of 1957); (ii)   the Income-tax Act, 1961 (43 of 1961); (iii)   the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988); (iv)   Chapter VII of the Finance (No. 2) Act, 2004 (22 of 2004); (v)   Chapter VII of the Finance Act, 2013 (17 of 2013); (vi)   the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015); (vii)   Chapter VIII of the Finance Act, 2016 (28 of 2016); or (viii)   the Direct Tax Vivad se Vishwas Act, 2020 (3 of 2020). (2) The words and expressions used herein and not defined, but defined in the specified Act, the Central Excise Act, 1944 (1 of 1944), the Customs Act, 1962 (52 of 1962), the Customs Tariff Act, 1975 (51 of 1975) or the Finance Act, 1994 (32 of 1994), as the case may be, shall have the same meaning respectively assigned to them in that Act.

Short title and commencement (1) This Act may be called the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. (2) Save as otherwise provided, it shall be deemed to have come into force on the 31st day of March, 2020.