GST AND INCOME TAX REFUND

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