All ITRs due date for FY 2019-20 Extension,other reliefs as part of 20 Lakhs crores package 

Income Tax Returns (ITRs ) due date for FY 2019-20 Extension and other reliefs announced by the Finance Minister as part of 20 Lakhs crores package 

Today, the Finance Minister, in her Press Conference has announced the broad details of the 20 Lakhs Crores relief package called Atmanirbhar Bharat Abhiyan package to fight the Covid-19 pendemic.

The salient features of the announcement are as under:

1. Direct Tax Measure

Pending Refunds

All pending refunds to charitable trusts and non-corporate businesses and professions will be issued immediately

ITR due dates extension

Due date of all income-tax return for FY 2019-20 (AY 2020-21) extended from 31st July, 2020 & 31st October,2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020

Time barring case extension

Date of tax assessments getting barred being extended to Dec 31, 2020, those getting barred on Mar 31, 2021 being extended to Sep 30, 2021

Vivad se Vishwas Scheme

Period of Vivad se Vishwas Scheme for making payment without additional amount extended to 31st December, 2020 

Reduced TDS/TCS rates

Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates. This reduction shall be applicable to the rest of FY 2020-21, i.e. from 14.05.2020 to 31.03.2020

2. Relief to Contractors

In a major relief to contractors, all Central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.  All central govt. agencies will give up to 6-month extension without any cost to contractor, covering construction and goods/services contracts, they can take up to additional 6 months to comply with contract conditions

3. Liquidity Injection for DISCOMs

₹ 90,000 crore emergency liquidity support to DISCOMs, to address serious crisis faced by them, this will be against receivables, will enable DISCOMs to pay generation companies, will eventually pass on benefits to customers

4. Extension of Registration and Completion Date of Real Estate Projects under RERA

Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications

5. Rs. 45000 crores Partial Credit Guarantee Scheme 2.0 for NBFCs

₹ 45,000 crore liquidity infusion, first 20% loss will be borne by govt. of India, even unrated papers will be eligible for investment, enabling NBFCs to reach out even to MSMEs in far-flung areas.

6. EPF Contribution reduced for Business & Workers for 3 months – Rs. 6750 crores Liquidity Support

To provide more take home salary for employees & give relief to employers in PF payment, statutory PF contribution for those not covered earlier is being reduced. Reduction is not for Central Govt . But govt. employees too will get this benefit

7. Other Interventions for MSMEs

Seamless e-market linkages across the board will be provided to MSMEs, considering their inability to participate in trade fairs due to COVID-19 . All pending payments to MSMEs, from central govt. bodies & PSUs to be done within next 45 days

8. Global Tenders to be disallowed up to Rs. 200 crores

Global tenders will be disallowed in government procurement for tenders up to ₹ 200 crore. This will address unfair competition being faced by MSMEs, and enable them to participate actively in government purchases.

9. MSMEs

Investment limit for MSME increased, Additional criteria for turnover size, Distinction between manufacturing and service MSME removed! 

Revised MSMEs Classification:-Composite Criteria (Investment and Turnover)

For MSMEs needing hand holding, A ₹ 50,000 crores through mother fund – daughter fund framework is being created, to expand their capacity and to get listed on markets which they choose

It is however notable that the Finance Minister did not answer the question as to how the Govt. will finance the relief package of Rs. 20 Lakhs crores and only said the that entire details shall be given after the entire Economic Package is announced.

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