The Finance Minister Smt. Nirmala Sitharaman declared economic packages of Rs. 20 lakh crore under which Micro, Small & Medium Enterprises (MSME) sector will get big relief under COVID-19 pandemic.
Several measures have been taken by the ministry including collateral-free automatic loan, revised definition of MSME, etc.
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Finance Minister, Smt. Nirmala Sitharaman shared the details of Rs. 20 lakh crore economy package at the press conference on 13th May, 2020 after a big announcement by the Prime Minister, Shri Narendra Modi on 12th May.
Finance Minister announced several relief under the Income Tax Act
a) The rates of TDS/TCS in respect of specified payments/receipts shall be reduced by 25%. This concession in the rate shall be available for the tax deducted or collected between 14th May 2020 till 31st March 2021. This relief shall not be available to a salaried and non-resident taxpayer. The tentative rates of TDS and TCS are specified in the below table.
b) All pending refunds to charitable trust and non-corporate businesses and professions shall be released soon.
c) Due date of all Income-tax return for the Financial Year 2019-20 will be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020.
d) The due date for tax audit under section 44AB shall be extended from 30 September, 2020 to 31st October, 2020
e) The last date for opting Vivad se Vishwas Scheme without paying additional 10% of the disputed tax shall be extended till 31st December, 2020.
f) Due date of 30-09-2020 for completion of assessments shall be extended to 31st December 2020. Where assessments are getting barred on 31-03-2021, it shall be extended to 30th September 2021.
Government helps taxpayers to have more liquidity in their hands by reducing the rate of TDS/TCS, the. In this difficult time, this announcement will benefit self-employed, professionals and senior citizens earning interest income or rental income.