Govt to Release Tax Refunds Immediately

In the critical time of Coronavirus, Government of India has taken a crucial step of releasing Rs.18,000 crores of pending refunds to the respective Income Tax payers. Complete Coverage: Coronavirus

Crux of the Matter

Tax Refunds as Monetary Measure The increasing number of Coronavirus cases in India may compel the government to extend the lockdown. In such a case, businesses across the country will be cash-strapped. Currently, almost every sector is also facing a labour shortage. The government extended its relief by releasing pending refunds worth Rs.18,000 of Income Tax and GST returns. The Ministry of Finance said that this move will benefit 14 lakhs individual taxpayers and 1 lakh businesses. The government will soon release the pending GST refunds too, which will support and enable the small and medium businesses to pay pending wages to laborers. But the Government will only entertain pending refunds amounting up to 5 lakh rupees. Besides financial aid, the Government also gave permission to companies to hold meetings on virtual platforms and to continue operations.

MPs Pay Cut Looking at the severity of the matter, Ordinance has been passed by the members of Union cabinets, which will allow the government to implement pay-cuts in the allowance and pension of members of parliament by 30% for 1 year. Union Minister Prakash Javadekar declared that MPLADs (Members of Parliament Local Area Development Scheme) fund has been discontinued till 2022. Further, he informed that this fund of Rs.7,900 crore (Rs 5 crore per annum per MP, for 2 years) will go into the welfare of the nation during the coronavirus crisis.

Curiopedia

1. A tax refund is a reimbursement to a taxpayer of any excess amount paid to the tax collecting authority. Taxpayers tend to look at a refund as a bonus or a stroke of luck, but it really represents an interest-free loan that a taxpayer makes to the government.

2. In the budget presented on Feb 1st, 2018 by Arun Jaitley, salaries of the MPs witnessed a hike of as much as 25%, which might be brought back down after recent pay cut.

Curated Coverage

1. India Today – Coronavirus: MP allowances, pensions slashed by 30% for a year, President, PM, governors to take salary cut

2. Economic Times – Govt to immediately issue Rs 18,000 crore as pending tax refunds to individuals, businesses

3. Livemint – Govt to release ₹18,000 crore tax refunds to businesses, people

4. Hindustan Time – Covid-19: Govt to issue all pending income tax refunds up to Rs 5 lakh

5. Time of India – 30% pay cut for MPs; MPLADS suspended

#Coronavirus #GST #IncomeTax