Key Highlights in the Speech of Our Honourable Finance Minister By CA Sayan Ghosh

Direct Tax Measures:

•    Due date of all income tax return for F.Y. 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and Tax Audit from 30th September 2020 to 31st October 2020.

•    All pending refunds to charitable trust and non corporate businesses and profession including proprietorship, partnership, LLP and Co- operatives shall be issued immediately.

•    Date of assessment getting barred on 30th September 2020 extended to 31st December 2020 and those getting barred on 31st March 2021 will be extended to 30th September 2021.

•    Period for " VIVAD SE VISHWAS SCHEME" for making payment without additional amount will be extended to 31st December 2020.

•    In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source ( TDS) for non- salaried specified Payments made to residents and rates of Tax Collection at Source ( TCS) for the specified receipts shall be reduced by 25% of the existing rates.

•    Payment for Contract, Professional fees, interest, rent, dividend, commission, brokerage etc shall be eligible for this reduced rate of TDS.

•    This reduction shall be applicable for  the remaining part of the F.Y. 2020-21 i.e. from 14th May 2020  to 31st March 2021.

•    This Measure will release liquidity of Rs.50,000 Crore.

•    PF Contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishment covered by EPFO for next 3 Months.

Rs. 3 Lakh Crore collateral free automatic loans for MSMEs

Emergency credit line for businesses/MSMEs from Banks and NBFCs upto 20% of entire outstanding credit as on 29 February 2020.

Main Features of this Loan as Follows:

•    Eligibility: Borrowers with up to Rs. 25 Crore outstanding and Rs. 100 Crore Turnover.

•    Tenor: 4 Year tenor with moratorium of 12 months on principal Payment.

•    Interest to be capped.

•    100% Credit Guarantee cover to Banks and NBFCs on principal and interest.

•    Scheme can be availed till 31st October 2020.

•    No guarantee fee, No fresh collateral.

Benefits: 45 Lakh units can resume business activity and safeguard jobs.

Rs. 30,000 Crore Special Liquidity Scheme for NBFCs/ HFCs / MFIs

•    NBFCs/HFCs/MFIs are finding it difficult to raise money in debt markets.

•    Government will launch a Rs.30,000 Crore Special Liquidity Scheme.

•    Under this scheme investment will be made in both Primary and Secondary market transaction in investment grade debt paper of NBFCs/HFCs/MFIs.

•    Will supplement RBI/ Government measures to argument liquidity.

•    Securities will be fully guaranteed by Government of India.

•    This will provide liquidity support for NBFCs/HFCs/MFIs and mutual funds and crate confidence in the market.

Global tenders to be disallowed  up to Rs. 200 crores.

Other measures to be kept in mind:

•    On the request of Government of India, RBI raised the ways and means advance limits of states by 60% and enhanced the overdraft duration limit.

•    Issued all the  pending income tax refund up to Rs. 5 Lakhs, immediately benefiting around 14 Lakh taxpayers.

•    Implemented " Special refund and drawback disposal drive" for all pending refunds and drawback claims.

•    Both the above measures amount to Rs. 18,000 Crore of refund.

•    Sanctioned Rs. 15,000 Crore for Emergency Health Response Package.

•    Provided relaxation in statutory and compliance matters such as:

•    Extending last date for income tax return to 30th June 2020.

•    Extending filing GST Returns to end June 2020.

•    24*7 custom clearance till 30 th June 2020.

•    Relaxation for 3 months for debit cardholders to withdraw cash free from any ATMs.

•    Allowing Payment before 15th May 2020 for Motor Vehicle and Health Insurance Policy.

•    Mandatory Board Meeting extended by 60 days till 30th September.

•    Allowing Extraordinary General Meeting through video conferencing with e-voting/ simplified voting facility.

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