GOVERNMENT ANNOUNCES EXTENSION OF DUE DATE FOR ALL INCOME TAX RETURNS TO NOVEMBER 30

Finance Minister Nirmala Sitharaman announced the extension of due date for all income tax returns to November 30. While addressing the press she made several announcements. The highlights of the announcements are as under.

• Due date for all income tax returns extended up to November 30
• Statutory PF contribution is being reduced 10 per cent for 12 per cent. Finance Minister says this is to ensure more take-home salary and to provide more relief to employers. No change for Central PSUs.
• Employee Provident Fund (EPF) establishments to be given liquidity relief of Rs.2500 crore for the next three months as well – June, July, August. This will benefit 70.22 lakh employees, says Finance Minister.
• All pending refunds of all charitable businesses and certain other groups to be issued immediately.
• The date of debarring assessments (which was said to be September 30, 2020) has now been extended to December 31, 2020. Those getting barred on March 31, 2021, are being extended to September 30, 2021.
•  From May 14, 2020, till March 31, 2021 – TDS (tax deducted at source) and TCS (tax collected at source) rates to be reduced by 25 percent. According to Finance Minister Nirmala Sitharaman, this will give the people a benefit of Rs 50,000 crore.
• Moratorium for loans till October-end. Government to assure 100 per cent credit guarantee.
• Banks would give Rs.45,000 crore to NBFCs under the credit guarantee scheme. The First 20 per cent loss will be borne by the Government of India.
• Rs 30,000 crore special liquidity scheme to be introduced for micro-units and NBFCs. This will benefit NBFCs, especially those supporting MSMEs.
• E-market linkage for MSMEs to be made accessible. Within the next 45 days, all pending payments will be cleared.
• Stressed MSMEs to get Rs 20,000 crore liquidity, two lakh MSMEs that are stressed will be eligible for it.
• Introduces ‘Fund of Funds’. Finance Ministry will infuse 50,000 crore into MSMEs that have potential and who need hand-holding during Covid-19 crisis. This will help MSMEs to be listed on markets.
• Limits of investments of micro industries to be raised up to Rs 1 crore.
•  Micro units can have a turnover of up to Rs 5 crore says Union Finance Minister.
• Manufacturing MSME and Service MSME will be defined similarly. Service investments will receive benefits of MSME even if MSME’s investments are up to Rs 1 crore.
•  Finance Minister says nearly 3 lakh loans to MSME will be collateral-free loans. 45 lakh MSMEs to benefit from the schemes.
• Global tenders will be disallowed for tenders of up to Rs 200 crores.
• The government would introduce infusion of Rs 90,000 crores in Discoms
• All Central Government agencies, including Railways, will extend the contracts for projects up to six months. This will be a major relief to the contractors says FM.
•  Urban development ministry will issue advisory to the States and Union Territories in respect of real estate and accordingly extend the registration and completion of projects. No individual applications will be required.