With extension of due date for filling of Tax Return, the Ministry of Finance (“MOF”) notifies changes in the new ITR Forms.

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Amidst the continuity of the Lockdown and consequential difficulty faced by Industry, the Income Tax Department, in an enabling move has extended the time period till 30th November 2020. At the same time, notified bringing in some key changes in the income tax return forms, the income tax department has now released ITR forms for financial year 2019-20 (Assessment Year 2020-21). In a notification (31_2020 by way of 12th Amendment to Income Tax Rules), the finance ministry issued ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4 (Sugam), ITR 5, ITR 6, ITR 7 and ITR V forms. The income tax department had earlier withdrawn ITR form 1 and ITR form 4 to incorporate changes made in income tax rules in the wake of the Covid pandemic. “The new forms require a separate table to disclose tax saving investment made in Q1 2020 for availing them in FY 2019-20. Following Forms (New Format) and changes made applicable have been notified; ITR 2 form: For individuals and HUFs not having income from profits and gains of business or profession. ITR 3 form: For individuals and HUFs having income from profits and gains of business or profession. ITR 4 form: Also known as Sugam, it is meant for individuals, […]

Rs 20,000 crores Subordinate Debt for Stressed MSMEs

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Stressed MSMEs need equity support GoI will facilitate provision of Rs. 20,000 cr as subordinate debt Two lakh MSMEs are likely to benefit Functioning MSMEs which  are  NPA  or  are  stressed  will  be eligible Govt. will provide a support of Rs. 4,000 Cr. to CGTMSE CGTMSE will provide  partial  Credit  Guarantee  support  to  Banks Promoters of the MSME will be given debt by banks, which will then be infused by promoter as equity in the Unit.

Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

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Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material and restart business Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020 Borrowers with up  to  Rs.  25  crore  outstanding  and  Rs.  100  crore  turnover eligible Loans to have  4  year  tenor  with  moratorium  of  12  months  on  Principal repayment Interest to be capped 100% credit guarantee cover to Banks and NBFCs on principal and interest Scheme can be availed till 31st Oct 2020 No guarantee fee, no fresh collateral 45 lakh units can resume business activity and safeguard jobs.

COVID-19 impact on Fixed Deposit schemes and its safety considerations

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A 75 basis points cut in the repo in March 2020, banks have started reducing the interest rate on their fixed deposits (FDs). The COVID-19 pandemic’s impact on the economy would be severe and that banks will continue to reduce interest rates in the near term. The RBI will make sure liquidity remains high and interest rates are low so that it can push the economy up after the lockdown is over. Experts are of the opinion that due to COVID-19 Lockdown the assets of many small private financial institutions and co-operative banks will turn into non-performing and therefore it is essential to take case of your Fixed Deposits considering the following points. Interest shall go down but offer assured return and safety With loans being priced at low interest rates due to the linking with the repo rate, it becomes difficult for banks to continue paying higher interest rates on fixed deposits to investors. So, fixed deposit interest rates will come down further because of lower loan rates of repo-inked schemes. But at the same time the deposits offer assured returns and capital safety in the present market conditions. Deposit for shorter Tenure Although interest rates across tenures are […]

Top national events that shaped India in Financial Year 2019-20

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We have seen the major outbreak during FY 2018-19 was Pulwama Attack on 14th February 2019 and on retaliation Indian Airforce has carried Balakot Airstrike crossing the Line of Control directed against a terrorist training camp on 26th March 2019. Apart from this we have also seen Kerala Floods During FY 2019-20 we have seen set back for Indian Politics where we have seen the demise of our veteran personality viz. George Fernandes, Manohar Parrikar, Sheila Dikshit, Sushma Swaraj, Arun Jaitley & Ram Jethmalani. Apart from this the major events during Financial Year 2019-20 that has been compiled by the undersigned are: April 11, 2019 – Voting for the 2019 Indian general electionbegan April 17, 2019 – Jet Airways suspended all flight operations, due to lenders rejecting Rs 4 billion of emergency funding and its membership in the IATA was suspended. On 17 June, after getting no acceptable offers from Etihad Airwaysand Hinduja Group, lenders to Jet Airways decided to refer the company to National Company Law Tribunal (NCLT) for insolvency proceedings with debt of $1.2 billion. May 3, 2019 – Cyclone Faniarrives on the coast of Odisha May 23, 2019 – Counting and declaration of results for the 2019 Indian general election. Narendra Modisecures landslide victory. May 24, 2019 – Surat Fire Tragedy; […]