Due to the problems faced by taxpayers as a result of the Novel Corona Virus (COVID-19) outbreak, the Indian government has taken several tax initiatives to extend tax exemptions to industries. In a written response to a query in the Lok Sabha today, Shri Anurag Singh Thakur, Union Minister of State for Finance and Corporate Affairs, confirmed this.
Here are the 7 tax relief measures taken by the government for industries affected by Coronavirus:
1) The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, extends various time limits for enforcement and legislative acts under taxation laws.
2) The TDS rates for defined non-salaries payments to citizens and specified TCS rates will be reduced by 25% of the specified rates from 14.05.2020 to 31.03.2021.
3) If the payment is made by 30.06.2020, interest for late payment of income tax (e.g. advance tax, TDS, TCS), Equalization Levy, Securities Transaction Tax (STT), Commodity Transaction Tax (CTT) due from 20.03.2020 to 29.06.2020 will be paid at a reduced rate of 9% per annum (0.75 percent per month).
4) Between 1 April 2020 and 28 February 2021, 1,27,534 crore in corporate tax refunds were issued in 2,19,050 cases.
5) Extension of the Vivad se Vishwas Scheme's deadline for making payments without extra fees to April 30, 2021.
6) Extension of the start-up date for SEZ units for purposes of seeking a deduction under section 10AA of the Act to September 30, 2020 for units that have obtained required approval by March 31, 2020.
7) The deadline for making capital gains investments, constructions, purchases, and deductions under sections 54 to 54GB of the Act for the fiscal year 2019-20 has been extended to September 30, 2020.