IMPORTANT RECENT LEGISLATIONS OF 2020

1. The Direct Tax Vivad se Vishwas Bill, 2020

The bill was introduced in Lok Sabha on February 5, 2020 by Nirmala Sitharaman. It prescribes
for a mechanism wherein resolution can be effectively carried out relating to issues of tax
concerning corporation and income tax. It provides for a definition of the term appellant as
“​income tax authority, or the person, or both, whose appeal is pending before any appellate
forum as on January 31, 2020​.” Appellate forums have been defined to include the Income Tax
Appellate Tribunals, Supreme Court, High Court and Commissioner (Appeals). The bill provides
for an elaborate mechanism to initiate resolution for pending tax matters in any of the above
mentioned forums. Based on such declaration, authority shall determine the amount that should
be paid and also grant a certificate, within 15 days of receipt of declaration. The amount payable
is determined on a number of factors such as penalties, fees, disputes of tax and interest
payments.

2. The Mineral Laws (Amendment) Bill, 2020

This law has its origins in an ordinance promulgated in January 2020. The bill, containing
similar provisions was introduced on March 2, 2020 and passed by March 12, 2020 by the Rajya
Sabha. This bill amends the provisions in the Coal Mines (Special Provisions) Act, 2015 and the
Mines and Minerals (Development and Regulation) Act, 1957. It introduced various provisions
and guidelines for Composite license for mining, approval of state governments for coal mining
licenses, advance action on auction of coal etc. It also prescribes the eligibility criteria for
auction of lignite and coal. Companies are also no longer hindered by Schedule II and III of the
act which prescribed that coal should be used only for steel and power production. The
companies are now free to determine what the end product would be subject to governmental
regulations.

ORDINANCES IN FORCE:
These ordinances have been primarily promulgated due to the Covid-19 crisis. They focus on
different areas of economy and aim at strengthening and simultaneously fighting the battle
against the deadly pandemic.

1. The Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020

This ordinance aims at creating certain relaxations to companies in matters of compliance. It

provides waiver in acts of Central Excise Act, 1944, Income Tax Act, 1961, the Prohibition of
Benami Property Transactions Act, 1988 and Customs Act, 1962. It provides for an extension in
time from March 2020 to June 29, 2020. Further it also waives penalties for tax returns which are
filed after the due date. It also amends the GST related compliances. Further, it is stated that
donations to the PM-CARES fund can act as a deduction under Income Tax.

2. The Salary, Allowances and Pension of Members of Parliament (Amendment)

Ordinance, 2020

This ordinance was promulgated on April 7, 2020. It aims at amending the ​Salary, Allowances,
and Pension of Members of Parliament. The ordinance reduces the salaries of the MPs by 30% in
the wake of the pandemic. The ordinance is aimed at generating funds to meet the demands.

3. The Epidemic Diseases (Amendment) Ordinance, 2020

This amendment was promulgated on April 22, 2020. The Ordinance aims at amending the
Epidemic Diseases Act, 1897. The Ordinance amends the Act to expand the powers of the
central government to prevent the spread of dangerous epidemic diseases and also include
protections for frontline healthcare workers who are treating patients and helping in combating
epidemic diseases. It contains a penal provision, for violence against healthcare workers and the
punishment is imprisonment for a term of three months to five years and a fine. Further it
empowers the governments to inspect vessels in port areas, detain persons who are travelling by
bus, trains ships or any other means,