The date for the tax audit was also extended by a month – from September 30, 2020 to October 31, 2020.
The Center today extended the filing of all income-tax returns as part of the Direct Tax Initiatives introduced in the context of the Rs 20 lakh crore fiscal stimulus to combat the economic damage caused by the seven-week lock-up to the coronavirus.
The dates for the financial year 2019-20 have been postponed from 31 July 2020 and 31 October 2020 to 30 November 2020, said Union Finance Minister Nirmala Sitharaman, explaining the details of the package announced last night by Prime Minister Narendra Modi.
The tax audit date was also extended by one month – from September 30, 2020 to October 31, 2020, she said.
The deadline for assessments to be suspended on 30 September 2020 will be extended to 31 December 2020 and those to be barred on 31 March 2021 will be extended to 30 September 2021, the Government said.
The ‘Vivad se Vishwas’ scheme for making payments without extra amounts will be extended to 31 December 2020.
In order to allow more liquidity in the hands of the people, the government provided a 25 % reduction in the TDS (Tax Deduction at Source) for non-salaried specified payments and the TCS (Tax Collection at Source) for specified receipts.
In the first of her several addresses to outline the outlines of the package, Sitharaman today announced 15 different actions involving MSMEs (Micro, Small and Medium Enterprises) NBFCs (Non-Bank Financial Companies), Provident Fund, Real Estate and Taxation.
The Government also reduced the payout of the Workers Provident Fund to private companies for three months – from 12% to 10%. To state-run businesses, there would be no improvement.
The Government also said that it will pay the EPF payment to the employees of MYMEs (Micro , Small and Medium Enterprises) to help them recover from the crisis.