Across the globe, the impact of COVID-19 pandemic has been unprecedented, and companies, especially SMEs, are struggling to maintain their business. A survey by the Federation of Indian Chambers of Commerce & Industry (FICCI), reveals that besides the direct impact on demand and supply of goods and services, businesses are also facing reduced cash flows due to slowdown in economic activity.

While many countries have announced stimulus packages for businesses, the Government of India is yet to do so. However, the government has rolled out several measures to ease the affected businesses and taxpayers. These measures include but are not limited to an extension of the filing dates of Income Tax, GST, linking of PAN and Aadhar, and relaxations in labor laws. The government has also urged employers not to terminate their employees or reduce salaries. Additionally, the finance ministry is already working on an economic package to mitigate the impact of coronavirus on the Indian economy.

With an intent to address some of the most pressing concerns, we have catigoricaly curated lists of relaxations and measures undertaken by the government.

Banking Services

Sub Category Eligible Persons Nature Reliefs Cash Flow Benefit Duration of Benefit
Banking Operations All Persons Operations
  • No Charges on ATM cash withdrawal from any other bank
  • No Minimum Balance fees to be charged by banks
  • Click here to know more
 Yes 1 April 2020 - 30 June 2020
Banking Operations All Persons Operations

Reduced bank charges on digital trade transctions for all Trade Finance Consumers

Click here to know more 		Yes 1 April 2020 - 30 June 2020

Direct Tax

Sub Category Eligible Persons Nature Reliefs Cash Flow Benefit Duration of Benefit
TDS (Witholding Tax) All Entities Statutory
  • Reduced interest rate - 9% instead of 12/18% on late deposits of TDS
  • No additional penalty/fee for late payment
  • Click here to know more
 Yes 1 April 2020 - 30 June 2020
TDS (Witholding Tax) All Entities Statutory Payout TDS
  • No Charges on ATM cash withdrawal from any other bank
  • No Minimum Balance fees to be charged by banks
  • Click here to know more
 Yes March till May 2020
Banking Operations All Persons Compliance Returns No For JanuaryMarch 2020 Return Only
Aadhar-PAN Linkage All Entities Compliance General

Due date extended till 30 June 2020 from 31 March 2020.

Click here to know more 		No NA
Income tax return and tax audit report All Entities Compliance General Due date extended till 30 Nov 2020 from 31 Oct 2020 No For FY 19-20
TDS (withholding tax rates) returns All Entities Compliance General

Due date extended till 30 June 2020 from 31 May 2020

 No Quarter 4 FY 19-20
TDS (withholding tax rates) All Entities Statutory Payout TDS 25% reduction in withholding tax (WHT) rates for non-salaried resident taxpayers, effective from 14 May 2020 to 31 March 2021. Yes 14 May 2020 - 31 Mar 2021
PM Cares Fund Donation All Entities Optional Payout

100% tax exemption of donations to Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) u/s 80G of Income Tax Act, 1961

Click here to know more 		Yes FY 2020-21

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Originally published 20 May, 2020

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