In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh, immediately.

This would benefit around 14 lakh taxpayers.

It has also been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs. 18,000 crore.

Earlier, Government has relaxed provisions related to loans and financial institution to provide relief to the persons. Moratorium of 3 months  may be allowed by banks to the loan holders for payments of EMI. Payment of credit card has also been included in this moratorium as clarified by the Reserve Bank Of India. 

All kinds of Term Loans having specific time period for repayment is covered under this moratorium.It includes Housing Loan, Personal Loan , Vehicle Loan, etc.Interest on working capitals loans has also been relaxed for SMES.

CBIC has extended various filing dates and issued notifications and circulars to provide relief to taxpayers. Interest on late payment of GST has been reduced with conditional filing . GST Late fees has been waived with conditional filing of GST Returns upto a specific date.Conditions for claiming restricted Input Tax Credit U/r36(4) has also been suspended for the period from February 2020 to August 2020.

Various dates which was due on 31.03.2020 in respect of Income Tax and also savings scheme also extended till 30.06.2020. Investments in various schemes to take the benefit under Income Tax for FY 2019-20 can be made till 30.06.2020.

The date of Financial Year has not been changed from 31.03.2020 to 30.06.2020 , but only the date of some compliance has been extended.

Read Also : Income Tax Deductions 

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The Reserve Bank of India (RBI) has allowed all financial institutions to allow a 3 month moratorium for all term loans in light of the COVID-19. RBI COVID-19 relief on loans is that the banks can now allow their customers for a 3-month period to not pay their monthly EMIs, and further the non-repayment will not effect their credit score.

Some of the question which is answered are:-

 Q1: If  EMI is due soon. Now whether the payment will not be deducted from the account holder account?

Ans: The RBI has only allowed banks to allow a moratorium. So the account holder has to take specific approval from bank. Individual banks will have to allow suspension of EMIs. This means EMIs will still be deducted from the account if you haven’t taken specific approval.

Read Also : Income Tax Deductions 

 Q2: What will be process of work at bank level?

Ans: All banks has to get their decision approved at the board level and will have to discuss the moratorium. Once approved, they may reach out to customers informing them of the moratorium.

Q3: Will non payment will impact the credit score if the bank suspends EMIs?

Ans: No. It will not.

 Q4:Which banks can offer this deferment to their customers?

Ans: All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) included.

Q5:Is this a deferment of EMIs a waiver of EMIs or?

Ans: This is not a waiver, but a deferment. The accumulated interest and principal as decided later shall be paid to the bank. Further RBI has recommended that the repayment schedule and all subsequent due dates as also the tenor for such loans may be shifted by 3 months.

Q6: Does the moratorium cover both principal and interest?

Ans: Yes. It does. If announced by your bank, you will be exempt from payment of your entire EMI, including payment and interest for three months. This will be applicable on all loans outstanding as on March 1, 2020.

Q7:What kind of loans does the moratorium cover?

Read Also : GST Recent Updates 

Ans: The RBI policy statement mentions term loans, which includes home loans, personal loans, education loans, auto  and any loans which have a fixed tenure. The also include consumer durable loans, such as EMIs on mobiles, fridge, TV etc

 Q8: Does the moratorium cover credit card payments ?

A: Since credit cards are revolving credit and not term loans, they are not covered under the moratorium.

 Q9: If a person have taken a project loan for setting up a factory. Can he not pay my EMI?

Ans: The moratorium has been allowed on any loan classified as term loans. If the bank is convinced that the person are not in a position to pay the EMIs, he will get a deferment.

 Q10: What relief has  RBI announced for businesses?

Ans: The RBI has allowed deferment for interest for all working capital loans taken by businesses. This will be applicable in respect of all working capital facilities outstanding as on March 1, 2020. The accumulated interest for the period will have to be paid after the expiry of the deferment period. There will be no change in terms and conditions of loan agreements and this will not result in asset classification downgrade.

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Experts suggest that the moratorium is seen as a precursor to a shotgun marriage with another player — tipped to be SBI and LIC as per media reports — to help resuscitate Yes Bank.

Sure enough, soon after the government capped withdrawals, the RBI said it would supersede Yes Bank’s board and appoint its own administrator.

“The financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said.

“The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank,” the RBI said, adding that steps taken by Yes Bank to attract new investors had failed.

After taking into consideration these developments, the Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors, it had no alternative but to apply to the Central Government for imposing a moratorium, the central bank said.

“The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic,” RBI said.

In terms of the provisions of the Banking Regulation Act, the Reserve Bank will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation “and with the approval of the Central Government, put the same in place well before the period of moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time,” RBI added.

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The apex Bank , Reserve Bank of India has issued  a circular regarding changes in timings of National Electronic Funds Transfer (NEFT) on 24*7 basis.

As per the circular , the neft facility will now be available 24*7 basis starting from 16^th December 2019 with the first settlement taking place after 00:30 Hours on 16^th December 2019.

The important points in the circular are as follows:

• The number of batches will be 48 each of Half Hour every Day
• The first settlement will be done after 00:30 Hrs on 16^th December 2019.
• The facility for Electronic transfer on NEFT basis will be available for all the days disregard of any holidays either public or otherwise.
• During Banking hours, NEFT Transaction will be initiated and processed as usual , but after the business hours of banks it is expected to be automated transactions initiated using Straight Through Processing (STP) modes by the banks and financial institutions .
• The present practice of crediting the beneficiary account (Account of transferee or person on whose account payment is done) or returning the transactions to originating (transferor or person from whose account amount is transferred) bank will continue.
• The members bank has to ensure the sending of positive confirmation message for all NEFT credits .
• All the existing provisions of the current National Electronic Funds Transfer procedural guidelines will be applicable for NEFT 24*7 basis transaction as well.

BENEFITS TO ACCOUNT HOLDERS IN THIS FACILITY

The account holder will be benefited by the change in NEFT Timings  as in the present condition the transaction initiated through NEFT mode after banking hours will be scheduled for the next working day and the transaction gets completed only after one day their by delaying the transactions .

After this facility , there will be no such situation and the amount will be transferred within a batch of half hour and will be credited to the payee on the same day.

The taxpayers will be enabled to pay GST and other Indirect Taxes in India after business hours of banks also due to this changes in NEFT timings.

IMPACT OF CHANGES IN NEFT TIMINGS  

Newly Introduced section in Income Tax Act , 1961 , Section 269SU says that the persons having business more than Rs 50 Crores in the preceding Financial Year shall provide mandatory the option of electronic payment or mode of payment in electronic form other than the mode of payment already given by them to customers  from 01^st November 2019. Noncompliance of this provision will result in imposition of penalty to the default persons.

Download the Circular – Click Here

Also Read : https://gstplatform.com/gstn-sending-sms-to-file-gstr3b/

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