Relaxation in statutory and compliance matters announced by the FM

ACA Sarita Laddha | Last updated: 18 May 2020

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Quick Summary

The Finance Minister has announced several relaxations in statutory and compliance matters to support businesses and individuals during the COVID-19 pandemic. Key measures include a 25% reduction in TDS/TCS rates to boost liquidity, immediate issuance of pending refunds for certain entities, and extended deadlines for income tax returns and assessments. Indirect tax relaxations include extended GST filing dates and 24/7 customs clearance. Additionally, there are provisions for Employee Provident Fund (EPF) contributions and revised definitions for MSMEs.

Relaxation in Statutory and Compliance matters Finance Minister Announced below relaxations in Statutory and Compliance matters on 13th May, 2021 to support fight against COVID-19 Direct Tax Related Relaxation TDS/TCS: Rs 50,000 crores liquidity through TDS/TCS rate reduction In order to

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FAQ :

A 25% reduction in TDS/TCS rates for specified payments to residents is introduced to increase taxpayer liquidity. Pending refunds for charitable trusts and non-corporate businesses will be issued immediately. The due dates for income tax returns and tax audits have been extended, as have assessment dates and the period for the Vivad se Vishwas scheme.

The rates of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) are reduced by 25% for specified payments and receipts. This applies to payments like contract, professional fees, interest, rent, dividend, commission, and brokerage, and is effective from 14th March 2020 to 31st March 2021.

Yes, the due date for filing GST returns has been extended to the end of June 2020, and customs clearance will be available 24/7 until 30th June 2020.

The government's 12% contribution to EPF for employers and employees will be extended for three months for businesses with fewer than 100 workers and employees earning below Rs 15,000 per month. Additionally, the statutory PF contribution for both employers and employees is reduced to 10% each for three months, with exceptions for PSU entities.

Yes, the definition of MSMEs is being revised by raising the investment limit and introducing an additional turnover criterion, while also eliminating the distinction between manufacturing and service sectors.