The decision has been taken by the Ministry of Finance as many investors have not been able to deposit money into their accounts on time due to the nationwide lockdown.
The government has extended the deadline to complete tax-savings to June 30, 2020, via an ordinance dated March 31, 2020. However, this might lead to individuals filing ITR to claim excess tax deducted from their salary income.
The government has recently amended the EPF withdrawal rules which allow an EPF member to withdraw money in case of emergency due to COVID-19.
The extension of validity of Form 15G and Form 15H of FY 2019-20 would come as a relief for the taxpayers who usually have to submit these forms in the first week of April every financial year to lower or avoid TDS.
Rates of these schemes have been slashed by between 70 bps and 140 bps for the Apr-June quarter.
Lenders like Punjab and Sindh Bank, PNB, Canara Bank have announced EMI loan deferment via Twitter.
The government via a press release dated March 30, 2020, has clarified that there is no extension of the financial year. Here is a look at seven new tax rules that will come into effect from the new financial year, i.e. April 1, 2020.
The RBI, today, cut the repo rate and reserve repo rate by 75 basis points and 90 bps, respectively (100 basis points/bps = 1 per cent). The repo rate now stands at 4.4 per cent and reserve repo rate at 4 per cent.
According to chartered accountants, this means that individuals can complete their tax-saving exercise for the ongoing financial year 2019-20 by June 30, 2020.
For those who are yet to link their PAN with Aadhaar, this extension will come as a relief as not linking the two will lead to the PAN becoming 'inoperative', as per current income tax laws.
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