Given the challenges taxpayers are facing due to the coronavirus outbreak, the Indian government has taken various tax measures to extend tax exemptions for industry.
Here are the government’s 7 tax break measures for coronavirus-affected industries:
1) Extension of various deadlines for compliance with regulations and legal measures under the tax laws, see the Law on Taxes and Other Laws (Relaxing and Amending Certain Provisions) of 2020
2) The TDS rates for certain non-salaries to residents and the specified TCS rates by 25 percent of the specified rates from May 14, 2020 to March 31, 2021.
3) Interest for late payment of income tax (e.g. input tax, TDS, TCS), equalization levy, securities transaction tax (STT), commodity transaction tax (CTT) payable from 03/20/2020 to 06/29/2020 will be at a reduced rate of 9% per year (0.75% per month) if the payment is made by 06/30/2020.
4) Issuing corporate tax refunds of Rs. 1,27,534 crore in 2,19,050 cases between April 1, 2020 and February 28, 2021.
5) Extension of the Vivad se Vishwas program deadline for payment without an additional amount until 04/30/2021.
6) Extension of the date of commissioning of the SEZ units for the application for deduction under Section 10AA of the Act to September 30, 2020 for the units that have received the required approval by March 31, 2020.
7) The investment / construction / purchase / withdrawal deadline for fiscal year 2019-20 in relation to capital gains pursuant to Sections 54 to 54 GB of the Act has been extended to September 30, 2020.