Benefits to The General Public by the Government due to Lockdown (COVID-19)

Hello Friends, 

My this blog is related to tell you about the benefits allow to the Tax Payers and to the General Public by the Government due to COVID-19.

COVID-19 has hit almost all sectors of the economy. PM Modi has also announced a 21-day complete lockdown till 14th April 2020 to check the spread of COVID-19.

On the other hand, the Union FM Smt. Nirmala Sitharaman and Reserve Bank of India(RBI) has announced some reliefs for businesses and General Public to cope up with the difficult times of COVID-19.

These are the following benefits allow to the Tax Payers and to the General Public like:

Income Tax

• The last date for the belated/revised filing of the income tax returns for the FY 2018-19 (AY 2019-20) is extended from 31st March 2020 to 30th June 2020.

• The last date for Aadhaar-PAN linking is extended from 31st March 2020 to 30th June 2020. 

• The time limit to avail the Vivad Se Vishwas scheme is extended up to 30th June 2020. The waiver of the 10% additional charge continues up to 30th June 2020 instead of the earlier time limit of 31st March 2020.

• Interest at a reduced rate of 9% p.a. shall be charged instead of 12% or 18% p.a. towards the delayed payment/deposit of the following income tax levies, made between 20th March 2020 and 30th June 2020. Note that there is no extension in the deadlines.
• Advance Tax
• Tax Deduction at Source (TDS)
• Tax Collection at Source (TCS)
• Self-assessment tax
• Equalisation levy
• Security Transaction Tax (STT
• Commodity Transaction Tax (CTT)

• No late fee/penalty shall be charged for any delay relating to this period.

• In the FY 2019-20, income is taxable till 31st March only and not up to 30th June, i.e. for taxability of income financial year is considered till 31st March only. There is no extension of the Financial Year.

• New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.

• A major relief to taxpayers, government claiming deductions under Section 80C, 80D and 80G to June 30, 2020. The earlier deadline for these were March 31, 2020. 

• Payment of Premium of old policies of LIC, Mediclaim, PPF, NPS, etc. due up to 31st March can be claimed as deduction even if paid till 30th June.

• Housing loan interest is eligible for deduction on an accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However, installments due up to 31st March can be claimed as deduction even if paid till 30th June.

GST (Goods and Service Tax)

Taxpayers with an annual aggregate turnover of up to Rs 5 crore: 

• The due dates for filing GSTR-3B for February 2020, March 2020, and April 2020 have been extended up to the last week of June 2020. 

• No late fee, interest or penalty shall be levied for them.

Taxpayers with an annual aggregate turnover of more than Rs 5 crore: 

• Except for a reduced interest charge, the due dates of GSTR-3B for February 2020, March 2020, and April 2020 stand extended up to the last week of June 2020. 

• No late fee or penalty shall be levied. 

• Any tax payments made after a delay of 15 days from the original due dates will attract a reduced interest at 9% p.a. instead of 18% p.a. The reduced interest charge will apply for the tax payments made between 20th March 2020 and 30th June 2020.

Taxpayers registered under the composition scheme: 

• The due date for filing the statement-cum-challan in CMP-08 for the last quarter of FY 2019-20, i.e. Jan-Mar 2020 is extended till the last week of June 2020. 

• Similarly, the due date for filing GSTR-4 for FY 2019-20 is extended from 30th April 2020 to the last week of June 2020.

• The last date for opting into the composition scheme for the FY 2020-21 has been extended from 31st March 2020 up to 30th June 2020. 

Financial & Other Services

The following financial/banking services have been relaxed for up to three months:

• Debit cardholders can withdraw cash for free from any other banks’ ATM 

• The minimum balance fee has been waived.

• The trade finance consumers will be charged with a lower bank charge for all the digital trade transactions.

• The Reserve Bank of India (RBI) had permitted commercial banks and other financial lenders that no EMI would be deducted from the account of any loan borrower for the next three months. 

• The Ministry of Road Transport and Highways has asked all states and union territories to consider documents like driving licenses, permits and registration papers as valid till June 30. Driving licenses and other motor vehicle documents that expired on February 1 will now be valid till June 30.
• 
  Apart from this, many more schemes and services have been run by the government for the general public.

Thanks and Regards

Kulvinder Kaur
B.Com(H), MBA(Finance)

9871580806, 8826566751
rightsteptoinvest@gmail.com