A step by Finanace ministry amidst Corona crisis is been seen. according to Finance ministry all the pending income-tax refunds up to Rs 5 lakh is to be released immediately. The move is set to benefit around 1.4 million individual taxpayers. This step also gives benefit to 100,000 businesses.
In New Delhi the finance ministry said on Wednesday that it will immediately release as much as ₹18,000 crore in tax refund. This refund is released to individuals and businesses to provide relief in the wake of the Coronavirus crisis. The move is set to benefit around 1.4 million individual taxpayers as well as 100,000 businesses.
A step by finance ministry amidst corona crisis is a move is followed up by Narendra Modi administration’s recent move to offer relief in interest, fee and penalty for late filings of various statutory forms amidst a nation-wide lockdown to fight the pandemic.
“It has been decided to issue all the pending income-tax refunds up to Rs. 5 lakh, immediately,” said in a statement from the ministry. It also said that it had been decided to issue all pending Goods and Services Tax (GST) and customs duty refunds. This would provide benefit to around 100,000 business entities, including micro, small and medium enterprises. Easing the liquidity problem of individuals and businesses has been the key part of the government’s strategy to help them ride over the current crisis. This includes loan repayment moratoriums and cash transfers to the needy, in addition to distribution of additional grain and pulses to the poor.
Businesses are facing the challenge of paying wages to their workers with unstable revenue streams during the lockdown period. Prime Minister Modi had last month appealed to businesses to adopt a humane approach and not to enforce any pay cuts. Businesses which have borne the brunt of the lockdown would greatly be enthused at the prospect of getting GST refunds, enabling quicker resumption of operations, said MS Mani, partner at Deloitte India.