{"id":8748,"date":"2020-05-17T13:03:25","date_gmt":"2020-05-17T07:33:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=8748"},"modified":"2020-05-16T18:04:16","modified_gmt":"2020-05-16T12:34:16","slug":"tax-related-measures-by-the-government-a-relief-for-taxpayers","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/","title":{"rendered":"Tax Related Measures by the Government- A Relief for Taxpayers"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Under COVID-19 shadow, Finance Minister Nirmala Sitharaman announced various tax related measures by the government to extend relief to taxpayers and companies to stand tall against hardships amid COVID-19 lockdown. Under Aatma Nirbhar Bharat Abhiyaan, Prime Minister Narendra Modi has announced a 20 lakh crore package in order to rejuvenate the economy. Finance Minister Sitharaman said that with a mission to build India a self-reliant nation, the central point of this initiative would be on land, law, liquidity, and labor.  \u00a0\u00a0\u00a0\u00a0 <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#Direct_Tax_Related_Amendments-_Tax_Relief_Measures_by_the_government\" >Direct Tax Related Amendments- Tax Relief Measures by the government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#Tax_Relief_Measures_by_the_Government-_Clarification_on_TDS_TCS_Reduction\" >Tax Relief Measures by the Government- Clarification on TDS, TCS Reduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#Highlights_of_CBDT_Notification_concerning_TDS_TCS_Cut\" >Highlights of CBDT Notification concerning TDS, TCS Cut<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#EPF_Assistance_for_Businesses_and_Workers\" >EPF Assistance for Businesses and Workers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#Reduction_in_EPF_Contribution\" >Reduction in EPF Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/tax-related-measures-by-the-government-a-relief-for-taxpayers\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Direct_Tax_Related_Amendments-_Tax_Relief_Measures_by_the_government\"><\/span>Direct Tax Related Amendments- Tax Relief Measures by the government <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The anticipated date for <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>filing income tax returns<\/strong><\/a> for the financial year will be extended from 31st July 2020 to 30th November 2020. In the same way, the due date for filing of tax audit form gets extended from 30th September to 31st October in the year 2020. Post lockdown, taxpayers would get enough time to compile their data needed in the process of income tax preparation.<\/li><li>There will be a reduction in Tax Deduction at Source rates for all non-salaried payment to residents and TCS rate of 25% of the specified rates in the financial year 2020-21. It would help in releasing Rs 50,000 crore liquidity. <\/li><li>This reduction would impact payments of professional fees, contract fees, commissions, interest, dividends, rent, etc. However, it won&#8217;t bring any reduction in taxes applied at source to salaries.<\/li><li>Under the &#8220;<a href=\"https:\/\/corpbiz.io\/learning\/vivad-se-vishwas-scheme\/\"><strong>Vivad se Vishwas scheme<\/strong><\/a>&#8220;, the date of payment excluding additional amount will be extended to 31st December, 2020.<\/li><li>Among other measures, the government has declared that all pending tax refunds of charitable organizations, small business ventures, and professions would get issued in no time.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Relief_Measures_by_the_Government-_Clarification_on_TDS_TCS_Reduction\"><\/span>Tax Relief Measures by the Government- Clarification on TDS, TCS Reduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Revenue Secretary Ajay Bhushan Pandey spoke in a press conference that TDS rates got reduced on 23 items like payment to professionals, bank accounts, securities, etc. Along with this, there was a reduction in TCS on 23 items. He added that 25% reductions were made on the rates at which TDS and TCS on various transactions were cut.<\/li><li>The CBDT has declared that the applicability of revised rates will be from 14th May, 2020, to 31st March, 2021. On 13th March, 2020, Finance Minister Nirmala Sitharaman had affirmed that the TDS\/TCS rate reduction would release up to 50,000 crores in the people&#8217;s hand. <\/li><li>As per the CBDT notification, no reduction in the TDS or TCS rate will be available where the requirement would be of collection or deduction of tax at a tremendous rate as a consequence of non-furnishing of Aadhaar\/PAN.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/business-income-taxation-of-charitable-institution-u-s-11-4-and-11-4a\/\">Business Income &#038; Taxation of Charitable Institution U\/s 11(4) and 11(4A): In-depth with Case-Laws<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights_of_CBDT_Notification_concerning_TDS_TCS_Cut\"><\/span>Highlights of CBDT Notification concerning TDS, TCS Cut<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nreduction was in store for the rates of TCS on sale of timber, tendu leaves,\ncoal, iron ore, and forest products.<\/li><li>There\nwas a reduction in the tax on professional fees from 2% to 1.5%.<\/li><li>TDS\non e-commerce participants also went on being reduced from 1% to 0.75%.<\/li><li>The\nCBDT asserted that tax deducted on rent, insurance policy, immovable property\nacquisition, and dividend payment had been cut by 25%.<\/li><li>There\nis a cut in the TDS on the motor vehicle sale whose cost is more than ten lakhs\nfrom 1% to 0.75%, earlier. Besides this, there is a reduction in TDS on 23\nitems. <\/li><li>Initially,\nthe rent payment by HUF or an individual was 5%; after getting cut, it became\n7.5%.<\/li><li>On\nlife insurance policy payment, the reduced percentage in TDS is from 5% to\n3.75%.<\/li><li>From\n10% to 7.5%, TDS on dividend payment by a mutual fund got reduced. <\/li><li>Under\nthe National Savings Scheme, TDS on payments regarding deposits got reduced\nfrom 10% to 7.5%.<\/li><li>For\nre-purchase of units by mutual funds, TDS on payments got reduced from 20% to\n15%.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EPF_Assistance_for_Businesses_and_Workers\"><\/span>EPF Assistance for Businesses and Workers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Amid the CCOVID-19 crisis, businesses are suffering to a great extent. All that they are expecting from the government side is financial relief and assistance. Observing the situation, the government has decided to come forward and extend support to businesses and workers via <strong>EPF<\/strong><sup><a href=\"https:\/\/www.epfindia.gov.in\/site_en\/index.php\"><strong>[1]<\/strong><\/a><\/sup> contributions for the next three months. <\/li><li>Announcement of relief measure was made in the April month to fund EPF contributions from the month of March till May. This contribution will be all about a total of 24% of the wages of the employee and the employer. Eligibility for this relief assumes the employees to work with less than 100 workers in an establishment.<\/li><li>Talking more about this scheme, it got extended till the month of August in 2020, and it will also provide liquidity relief of Rs 2500 crore to more than 72 lakh employees and not less than 3.5 lakh businesses throughout India.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduction_in_EPF_Contribution\"><\/span>Reduction in EPF Contribution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\ngovernment has made a call for a reduction in both employers as well as an\nemployee contribution to the EPF account of an employee from 12% of the salary\nof an employee to 10% for the upcoming three months. <\/li><li>Applicability\nof this scheme will be only for those employees who are left uncovered under\nthe plan of 24% EPF support.<\/li><li>More\nthan 6 lakh businesses and more than four crore employees would get relief due\nto this scheme.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The speech delivered by Finance Minister Nirmala Sitharaman and PM Narendra Modi has emphasized tax related measures by the government and EPF support. Looking at India&#8217;s economic predicament during the COVID-19 outbreak, one thing is evident that the government is yet to do a lot more on the economic front in the days to come.\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/itr-rectification-a-complete-guide-on-how-to-rectify-itr-online\/\">ITR Rectification \u2013 A Complete Guide on How To Rectify ITR Online<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Under COVID-19 shadow, Finance Minister Nirmala Sitharaman announced various tax related measures by the government to extend relief to taxpayers and companies to stand tall against hardships amid COVID-19 lockdown. Under Aatma Nirbhar Bharat Abhiyaan, Prime Minister Narendra Modi has announced a 20 lakh crore package in order to rejuvenate the economy. Finance Minister Sitharaman [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":8760,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,152],"tags":[575],"acf":{"service_id":"127"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":5240,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8748"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=8748"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8748\/revisions"}],"predecessor-version":[{"id":8765,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8748\/revisions\/8765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/8760"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=8748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=8748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=8748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}