Context: Recently,the Government of India promulgated the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 to bring into effect various tax compliance related measures announced on March 24 in the wake of COVID-19 pandemic.

• Extension of several time limits related to direct and indirect tax filings have been extended to June 30, so has the date for passing of order or issuance of notice by tax authorities under various direct taxes and Benami Law.
• The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to the PM-CARES Fund as available to the Prime Minister’s National Relief Fund.
• It also allowed for 100% exemption of donations made to PM Cares fund, set up to aid containment and relief efforts against the virus outbreak. Also, the limit on deduction of 10% of gross income shall also not be applicable for such donations.
• Taxpayers can avail the Sabka Vishwas Legal Dispute Resolution Scheme 2019 till June 30, giving more time to settle their indirect tax disputes.
• Government has enabled itself by amending the CGST Act, 2017, to extend due dates for various compliances including statement of outward supplies, filing refund claims, filing appeals, among others, on recommendations of the GST Council.

About Ordinance

• Ordinances are like a law but not enacted by the Parliament but rather promulgated by President of India when Lok Sabha and Rajya Sabha or either of those is not in session. 
• Union Cabinet’s recommendation is a must for an ordinance to be promulgated.Using ordinances, immediate legislative actions can be taken.
• For an ordinance to exist, it should be approved by the Parliament within six weeks of it being introduced. 
• Parliament is required to sit within 6 weeks from when Ordinance was introduced. 

Ordinance Making Power of President
Article 123 deals with the ordinance making power of the President. President has many legislative powers and this power is one of them. He can only promulgate the ordinance under these circumstances:

• When both the houses or either of the house is not in session
• Circumstances occur where the President thinks it necessary to act without waiting for houses to assemble.
• No instructions are needed by President’s when he promulgates an ordinance
• His power to promulgate ordinance is not a discretionary power. Council of Ministers’ (headed by PM) advice is a pre-requisite
• The ordinance introduced by him can be withdrawn anytime

There are the following limitations

• President can promulgate an ordinance only when both the houses are not in session or only one house is in session.
• For an ordinance to be promulgated, such circumstances should be there which deem it necessary for President to legislate through the ordinance
• The President cannot promulgate an ordinance unless he is satisfied that there are circumstances that require taking ‘immediate action’.
• Ordinances must be approved by Parliament within six weeks of reassembling or they shall cease to operate. They will also cease to operate in case resolutions disapproving the ordinance are passed by both the Houses.