TaxBeat

Our Finance Minister-Mrs. Nirmala Sitharaman addressed a Press Meet on 13th May, 2020 to enumerate measures with regards to the Relief Package announced by our Hon'ble PM Mr. Narendra Modi to help India fight the economic damage done by the outbreak of COVID-19. A slew of measures were announced for granting collateral free credit facilities to MSMEs (Micro,Small and Medium Enterprises) and NBFCs (Non Banking Finance Corporations) for reviving the slumped businesses. MSMEs and NBFCs were promised a total credit of 3-4 lac crores with GOI (Government of India) backing the guarantees. The scheme can be availed till 31st October,2020. For business compliance and self employed professionals as well , several measures were listed out as below: Rates of TDS/TCS in respect of non salaried payments shall be reduced by 25% from 14.05.2020 to 31.03.2021 (as per the below table) except the following: Where a resident person does not furnish his PAN or Aadhaar and tax is deductible at a higher...

Taxpayers deposit money using challan and the paid amount gets credited in a particular head in the electronic cash ledger and the same can be utilized to pay the liabilities of that particular head only. Sometimes taxpayer deposits the amount in a wrong head and it cannot be utilized to pay the liabilities due under another head. In such cases taxpayers have to apply for refund of the tax paid under the wrong head by filing a refund application under FORM RFD-01 which is a long process and results in blockage of funds. To make the above process faster and easy an amendment is done through section 99 of the Finance (No.2) Act, 2019 by inserting subsection 10 & 11 under section 49 to transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, on the common portal, to the electronic cash ledger for integrated tax, central tax, State tax, Union, territory tax or cess. To give effect to this amendment co...