Across the globe, the impact of COVID-19 pandemic has been unprecedented, and companies, especially SMEs, are struggling to maintain their business. A survey by the Federation of Indian Chambers of Commerce & Industry (FICCI), reveals that besides the direct impact on demand and supply of goods and services, businesses are also facing reduced cash flows due to slowdown in economic activity.
While many countries have announced stimulus packages for businesses, the Government of India is yet to do so. However, the government has rolled out several measures to ease the affected businesses and taxpayers. These measures include but are not limited to an extension of the filing dates of Income Tax, GST, linking of PAN and Aadhar, and relaxations in labor laws. The government has also urged employers not to terminate their employees or reduce salaries. Additionally, the finance ministry is already working on an economic package to mitigate the impact of coronavirus on the Indian economy.
With an intent to address some of the most pressing concerns, we have catigoricaly curated lists of relaxations and measures undertaken by the government.
Banking Services
Sub Category | Eligible Persons | Nature | Reliefs | Cash Flow Benefit | Duration of Benefit |
---|---|---|---|---|---|
Banking Operations | All Persons | Operations |
|
Yes | 1 April 2020 - 30 June 2020 |
Banking Operations | All Persons | Operations |
Reduced bank charges on digital trade transctions for all Trade Finance Consumers Click here to know more |
Yes | 1 April 2020 - 30 June 2020 |
Direct Tax
Sub Category | Eligible Persons | Nature | Reliefs | Cash Flow Benefit | Duration of Benefit |
---|---|---|---|---|---|
TDS (Witholding Tax) | All Entities | Statutory |
|
Yes | 1 April 2020 - 30 June 2020 |
TDS (Witholding Tax) | All Entities | Statutory Payout TDS |
|
Yes | March till May 2020 |
Banking Operations | All Persons | Compliance Returns |
|
No | For JanuaryMarch 2020 Return Only |
Aadhar-PAN Linkage | All Entities | Compliance General |
Due date extended till 30 June 2020 from 31 March 2020. Click here to know more |
No | NA |
Income tax return and tax audit report | All Entities | Compliance General | Due date extended till 30 Nov 2020 from 31 Oct 2020 | No | For FY 19-20 |
TDS (withholding tax rates) returns | All Entities | Compliance General |
Due date extended till 30 June 2020 from 31 May 2020 |
No | Quarter 4 FY 19-20 |
TDS (withholding tax rates) | All Entities | Statutory Payout TDS | 25% reduction in withholding tax (WHT) rates for non-salaried resident taxpayers, effective from 14 May 2020 to 31 March 2021. | Yes | 14 May 2020 - 31 Mar 2021 |
PM Cares Fund Donation | All Entities | Optional Payout |
100% tax exemption of donations to Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) u/s 80G of Income Tax Act, 1961 Click here to know more |
Yes | FY 2020-21 |
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Originally published 20 May, 2020
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