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The answer is yes. The deduction can be claimed of the Amount payable as Premium of old policies of LIC, Mediclaim, PPF, NPS, etc. which is due up to 31st March 2020, even if paid till 30th June, 2020. However, if the insured does not pay the premium of a term insurance policy whose due date is before 31st March, 2020; it may fail. So, it is advisable for the taxpayers should check for the last date that can be allowed for the payment of the premiums with their insurance providers to steer clear policy lapse.
The answer is yes. The Deduction can be claimed in the F.Y. 2019-20 for the New LIC, Mediclaim, PPF, NPS, etc. policies taken after 31st March 2020 but before 30th June 2020. But, “If you already have an existing health policy whose renewal date is before 31st March 2020, any delay or non- payment of the premium amount in such a health policy can result into a policy lapse. However, the grace period is provided after 31st March 2020 by IRDA for the payment of premiums. So, you can pay premiums within the grace period and can claim the benefit of tax deduction under Section 80D for the F.Y. 2019-20.”
The answer is yes. To get the benefit of deductions, those persons who have yet not made investments in PPF/LIC etc. and are eligible for getting deduction u/s 80C can do it now i.e. till 30th June 2020.
They can also invest in below-mentioned schemes:
Also, in the PPF A/c there is a restriction of Rs. 1.50 Lakhs for deposits in one year. If the person deposits any amount in between 1st April 2020 to 30th June 2020 and has not deposited any amount earlier in the PPF Account till 31st March 2020 then surely he can claim deduction u/s 80C for the FY 2019-20. However, as there is a yearly ceiling of Rs. 1.50 Lakhs for deposit in the PPF Account as per the present PPF rule, such person may not be able to invest again Rs. 1.50 Lakhs for the FY 2020-21. To take care of this situation, the Government may need to amend the PPF rules.
The answer is no. “All the tax-saving investments/payments will not be allocated to the F.Y. 2019-20 by default. The investments made between 1st April and 30th June 2020, can either be linked to F.Y. 2019-2020 or F.Y. 2020-2021 as per the choice of the taxpayer.”
Before we know about how a taxpayer worried about tax planning due to the Corona Virus? First, we need to understand what does Tax planning mean?
Tax planning is a situation where the taxpayer takes advantage of a fiscal incentive afforded to him by the tax legislation by actually complying to the conditions attached to that fiscal incentive.
Nowadays as all, we aware that whole the world is facing problem due to COVID 19. And in this situation, our taxpayers worried about their tax planning. And considering this issues our Finance Minister Nirmala Sitharaman has announced various reliefs to taxpayers in the press meet, held on the 24th of March 2020. As per this meeting investment in tax savings instruments, capital gains for investment to claim capital gains exemption, compliance with STT law, equalisation levy law compliances, all extended to 30th June 2020. So, no one faces a problem in his/ her tax planning.
There is good news for the persons who have taken a loan from any all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) as the RBI has issued a notification allowing banks and NBFCs to postpone the payment of EMI falling (becoming due) between 1st March, 2020 to 31st May, 2020 and to reschedule them accordingly. Due to this, the residual period of the loan will be shifted accordingly so you need not to worry about increased payment of EMI for the residual period of the loan. But remember the interest will be charged for the moratorium period. The relaxation will be for all term loans.
Also, RBI has also allowed the abovementioned financial institutions to postpone the interest for the working capital facilities provided to its client during the period from 1st March, 2020 to 31st May, 2020. The interest accrued upon these facilities shall be recovered on the immediatecompletion of the abovesaid period.
Refer to Circular No. RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20
We have the following 7 lessons for responding to unfolding events:
1. Update Intelligence on a daily basis:
A) We need to update our knowledge regarding the impact of COVID-19 in business processes & there is a requirement to prepare new strategies of mitigation rather than containment.
2. Beware of News Cycles:
A) The New Organisation often focus on what's new rather than the big picture & they sometimes don't distinguish between hard facts, soft speculation.
3. Use Expert & Forecasts Carefully:
A) Use those people who are expert in virology, public health, logistics & other disciplines. Forecasts carefully according to the current situation and information that what's going on & what works.
4. Constantly reframe your understanding of what's happening.
A) Planning is a continuous process, so the organisation needs to change its Policy & Procedure according to current or potential circumstances.
5. Make sure your response is balanced across these dimensions
A) Communication: Be sure to communicate policies promptly, clearly & in a balanced manner.
B) The Employee needs: identify employees’ needs, whether it is balanced with the policy & procedure of the organisation.
C) Supply chain stabilization: Stabilize supply chains by using safety stocks, alternative source.
6. Prepare for a changing world:
A) Companies should invest in Online Shopping, Online Education & Public Health Investment etc. to stay close to your customers.
7. Implementation & evaluation:
A) Analyze whether plan implemented as per design & it should be evaluated from time to time.
On 26th March, 2020, many big announcements have been made by the government to reduce the hardships of the people during the critical time of nationwide lockdown. Finance Minister Nirmala Sitharaman has announced a relief package of 1 lakh 70 thousand crores. Employees Provident Fund (EPF) subscribers can now withdraw 75% of their PF account balance or equal to three months salary, whichever is less. This withdrawal will be in the form of non-refundable advance.
Also, the Finance Minister has announced to share the PF of employers and employees of small companies with less than 100 employees for three months. In this, 12% of the employer and 12% of the employee, that is, 24% of the total share will be borne by the Government. This relief is for companies which have less than 100 employees and the salary of less than 90% of its employees is less than Rs. 15,000.
Firstly, you need to know that in the era of Globalisation, the economies of various Countries are largely interdependent on each other. Hence conditions of one economy affect the other thereby affecting the exchange rates. Also, you might be observing that the value of INR is degrading day-by-day over the past few days after the RBI took control of Yes Bank. The situation becomes even worse when the Corona Virus led to the lockdown of our economy. As a consequence, the exchange fell to INR 76.55 per USD on 23rd March, 2020 and the same degraded to INR 75.95 per USD on 24th March, 2020.
Actually, the reason is that many of the foreign investors who have invested in the Indian market are of the view that Indian Healthcare system will not be adequate to cope up with the Corona Virus and the stock exchange will suffer more because of which the investors are drawing their money out of the Indian Stock Market to prevent themselves from the feasible losses which hit the treasury of foreign exchange of RBI. This unestimated demand creates a gulf between the demand and supply which gives rise to the degraded foreign exchange rate.
As a corrective measure and for the ease of citizens, Government provided various relaxations, RBI revises its Repo rate to 4.4% and provides various other relaxations to money lenders which emerges as a remedy to this degraded Foreign Exchange Rate and currently the Exchange Rate is floating at INR 74.88 per USD.
(Data provided by Morningstar for Currency and Coinbase for Cryptocurrency).
For every Company including Foreign Companies having an annual net worth of Rs.500 cr. or annual turnover of Rs.1000 cr. or an annual profit of Rs. 5 cr., it is necessary for them to spend at least 2% of the average profit of three years on CSR activities.
In a tweet Finance Minister Nirmala Sitharaman said:
"In the view of the spread of the novel # Coronavirus in India, it's declaration has pandemic byWHO & decision of Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR Activity" and the same has been notified through General Circular 10/2020 No. 05/01/2019-CSR dated 23.03.2020.
Corporate may be permitted to contribute in cash or kind towards COVID-19 (an eligible CSR activity).
Due to Coronavirus (COVID 19) is spreading in the whole world vastly. Restrictions and lockdowns imposed in the country to control the spreading of the virus. Doctors are curing the coronavirus patients risking their own life. Policemen are on duty. Safai karamcharis, Ward Boys, Nurses, ASHA workers and many others are working for us risking their own life in danger.
Finance Minister Nirmala Sitharaman, on 26th March 2020, during a press conference announced insurance cover of Rs 50 lakh per person to the health workers – Doctors, Paramedics and Nurses, ASHA workers and Sanitation staff who are working for us to fight against the COVID-19 illness and face the highest risk of the illness.
This is expected to benefit such individuals and will help them in case they are exposed to the virus.
If a health worker is diagnosed as coronavirus positive, he would get claims settled for up to Rs 50 lakh under this health insurance cover scheme. The policy will cover hospitalization and other treatment expenses related to COVID-19.
The Coronavirus (COVID 19) is spreading in the whole world vastly. This pandemic has curtailed businesses operations across the globe. With restrictions and lockdowns imposed in the country is going to hit financially very hard. People could experience a loss of income due to illness or workplace closures. Here are a number of steps that you can take to prepare yourself for the financial uncertainty:
1. Revisiting Investment Plans: The period of lockdown can be utilized to revisit investment plans and to rethink whether to change strategy or not and start curtailing the non-important ones.
2. Support others: If you are able, use your money to help friends, family and your broader community.
3. Make your own discounts: When it comes to buying discounted goods, you anoverspend without realizing it. Can look at other areas to save too.
4. Essential Needs: Holding enough cash for basic needs is important but being prepared for the long term essential needs is important. So think about the same.
5. Should I keep my savings in the bank account or withdraw as banks can fail at any time: If you have put your money in bank accounts then you should not worry as there’s a minimum balance which they will give even if they fail. Moreover, the minimum balance condition has been waived off for the time being during Coronavirus for the period of 3 months upto 30 June 2020.
The Coronavirus pandemic is spreading like a fire. On 23rd March 2020, our Prime Minister Narendra Modi announced nationwide lockdown for 21 days from 24th March to 14 April 2020 which affected the daily wagers and migrant workers who have been working in big cities away from their homes.
Since they didn’t have many resources to sustain and lock themselves for 21 days, it became quite difficult for them as neither they have the option to go to their homes nor they can survive here in big cities because of lack basic necessities and also the money to buy them. The Government on seeing this have started some buses as a mode of transport for them to ease their journey. This situation is intense where the whole nation is approaching towards stage 3 of the pandemic and a mass has come to the streets like this. Both the Government and Police are trying to make the situation under control.
RBI finally responded to the Coronavirus-induced crisis with a whopping 75 basis points cut inthe repo rate, bringing it down to 4.4 per cent, it is lowest ever to rescue a slowing economy that has now got caught in coronavirus whirlwind. The RBI since early February inject cash equivalent to 3.2% of the Country’s gross domestic output. The RBI said it will conduct auctions of targeted term repos of up to three years' tenor of appropriate sizes for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.
Liquidity availed under the scheme by banks has to be deployed in investment-grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as on March 27, 2020. RBI has also reduced CRR by 100 basis points from 4% to 3% for one year starting from March 28, 2020 to March 26, 2021 with a reduced minimum daily requirement of 80% from 90% from the fortnight beginning from March 28, 2020 available upto June 26, 2020.
Because of corona and consequential lockdown, Investors of the companies are withdrawing their money by selling their stockholding. In this situation law of demand and supply works, the supply of such stock in the secondary market is so high, such that market price of shares of companies is falling continuously which result in lower in market capitalization of Companies. On 23/03/2020 benchmark of Sensex tumbled 3,934.72 or 13.15 %, to end at 25981.24 points,while the Nifty 50 index settled 1100.85 points, or 12.70%, lower at 7634.60 and in order toavoid major loss in the chunk of the capital of Investor trading has been halted for 45 minutes. The market capitalization BSE of Rs of 151 Billion has fallen to 103 billion. A total of 48 Billion market capitalization has been lost due to the pandemic of COVID-19.
CA Gopal Kumar Kedia is the best Chartered Accountant in Delhi, India with over 30 years of vast Experience of all the Chartered Accountants Services.
For us, at G. K. Kedia & Co. client satisfaction is our utmost priority and we never hesitate to go the extra mile to help our clients more efficiently. With professional expertise, and a multidisciplinary skilled team, we are committed to our mutual progression – CLIENT'S SUCCESS IS OUR SUCCESS. The rapid outbreak of the coronavirus presents an alarming health crisis that the world is grappling with. In addition to the human impact, there is also a significant commercial impact being felt globally. The COVID-19 (coronavirus) pandemic has created a great deal of uncertainty and concern. We at G. K. Kedia & Co. are still working dedicatedly for our clients and wanted to communicate that we are still here for our clients and there will be no interruption in our services during this Lockdown as a result of COVID-19 outburst in India so that we can alleviate the impact of COVID-19 on our Clients Business. Many of us are rapidly adjusting to new ways of working as a result of these challenging times. Here at G. K. Kedia & Co. we have implemented our business continuity plans, and have taken actions to ensure continued services to our clients. First and foremost, our plan ensures the health and safety of our employees, so we can continue to deliver and support the services our clients count on. We have closed our offices for the next few weeks, migrating to a Work-From-Home model, to do our part for the well-being of our employees and our communities. Our secure remote working practices are enabling our staff to communicate and collaborate with our clients regardless of location while preserving our existing security and operational controls. The flexibility of our model and Community-based approach enables us to continue with you with minimal disruption. We have the processes, practices and infrastructure in place to continue to provide the business and operational support that you need in this challenging time. G. K. Kedia & Co. is a firm having a Cloud-Based tally and Peer to Peer networking system commonly known as "P2P". We are fortunate to have a suite of tools that keep our business operating smoothly, no matter where our people are. In addition, of cloud platforms & P2P have built-in features that offer flexibility and allow employees to work from anywhere and which is acting as an essential tool for serving our clients at this point of time, when the whole economy is in lockdown and with the help of cloud-based networking system we are able to meet the deadlines in a timely manner and which ultimately results in optimum utilization of resources and a higher level of client satisfaction. During this lockdown period, numerous circulars are being issued by Ministry of Corporate Affairs (MCA), Central Board of Indirect Taxes and Customs (CBIC), Central Board of Direct Taxes (CBDT), in relation to statutory compliance, GST Return compliance and Income Tax compliance, so we as the Chartered Accountants having expertise in Statutory compliance, Direct Taxes as well as Indirect Taxes, keeping our clients updated with recent circulars and notifications issued by the respective authority. Our team members are continuously adhering to the queries or problem which is being faced by our clients and solving their queries on a real-time basis which in turn results into a higher level of satisfaction which is the utmost objective of our firm. While we prefer to meet face-to-face with you, we are heeding the advice of health and safety leaders and will move to virtual meetings and digital communications. We believe that our Client's success is our success — so now, more than ever, we want to assure you that we are here to help you all.