Navigating Taxes in Financial Transactions
The COVID-19 pandemic has created an unprecedented disruption to the world economy and public at large since start of 2020. Some of the world’s most developed countries are badly hit socially, financially and economically. Some of the countries have already announced a downward projection in their growth estimates, some economies are clearly in a negative zone and world on the edge of a bigger recession than last few decades. However, India looks better than some of these advanced countries at present in handling the COVID-19 Pandemic due to its timely as well quite strict initiatives. Indian Government has announced ‘Self Reliant India’ relief package of approx. INR 20 trillion in three tranches between March 2020 to May, 2020 to protect the Indian industries and various sectors from ill effects of lockdown for more than two months. We have covered the announcement in ‘Business Compliance and relief measure’ and ‘Special economic package’.
Needless to say, Government has taken some pro-active measures such as relaxation in residential conditions for foreign citizens stranded in India between 23-31 March 2020 and some relaxations on filing of tax returns, but considering the damage due to loss of business for more than 90 days lockdown, we believe the tax measures are not enough! It is most likely that in coming days, more and more representations will be made and after reviewing the challenges in tax collection, the Government may come up with Industry specific tax stimulus to meet COVID-19 disaster and boost the confidence of the taxpayers to sail through in tough tides.
Therefore, We, at In Corp attempt to pen down some of the direct (herein referred to as ‘Income Tax’ or ‘IT’) and indirect tax (herein referred to as ‘Goods and Service Tax’ or ‘GST’) propositions, which we feel most relevant, that one may face in testing times of COVID-19
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