14 lakh SMEs to get benefited from Income Tax

With the SMEs are coming forward to congratulate the decision of the Government on taking decision of immediate tax refunds for SMEs, individuals to beat cash crunch up to Rs 5 lakh to be released for 14 lakh SMEs amid coronavirus COVID-19 lockdown.

This was made to provide relief to small and medium businesses (SMBs) and individuals suffering from cash crunch during the lockdown imposed to curb the spread of the coronavirus.

The statement said, "In the context of the COVID-19 situation and with a view to providing immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs 5 lakh, immediately. This would benefit around 14 lakh taxpayers."

It further says, "It has been decided to issue all pending GST and Custom refunds which would provide benefit to around 1 lakh business entities, including MSME. Thus, the total refund granted will be approximately Rs 18,000 crore”.

There is great amount of cash crunch in the industry with the job loss due to layoff , salary cut or delayed in the businesses because of the coronavirus impact. The number of fresh cases linked to COVID-19 has risen to 5,194 and the death toll stands at 149, said Health and Family Welfare Ministry today.

In a press conference, Sitharaman touched upon the taxpayers' concerns surrounding Income Tax returns, compliance, and the deadline related to GST, IBT related matters, bank related compliances etc, and said that the Narendra Modi-led government is working on a financial relief package to help people in the light of the COVID-19 pandemic.