S. D. Mehta and Co., Chartered Accountants is a firm established in 1981 located in Ahmedabad, India.
The firm is having a vast and enriched experience over 37 years, and is committed to give high level of client service and satisfaction.
The firm is providing super specialist services in the field of Income-tax and GST alongwith Transfer pricing, International taxation, personal taxation and Statutory as well as Internal auditing services to domestic as well as foreign clients. The firm is a holder of Peer Review certificate.
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Rs. 3,00,000 Cr Package scheme details
(Emergency Credit Line Guarantee Scheme / ECLGS)
Operational Guidelines
The Scheme shall be named as ‘Emergency Credit Line Guarantee Scheme (ECLGS)’ (hereinafter referred as the ‘Scheme’) and the credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’
To provide 100% guarantee coverage for the GECL, which shall be a pre-approved sanction limit of up to 20% of loan outstanding as on 29th February, 2020 to eligible borrowers, in the form of additional working capital term loan facility (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs) from all Member Lending Institutions (MLIs) to eligible Business Enterprises / Micro, Small and Medium Enterprise (MSME) borrowers, including interested PMMY borrowers , in view of COVID-19 crisis, as a special Scheme.
Scheme shall come into force from the date of issue of these guidelines by NCGTC.
For the purposes of this Scheme –
SCOPE AND EXTENT OF THE SCHEME
Name of the Borrower |
Overall Outstanding of the Borrower across MLIs (INR Crore) |
Overall Outstanding of the Borrower with MLI (INR Crore) |
DPD of borrower as on 29th Feb 2020 (Days) |
Turnover as per latest available financials (INR Crore) |
|
Borrower A |
30 |
15 |
30 |
90 |
Not eligible |
Borrower B |
30 |
15 |
62 |
90 |
Not eligible |
Borrower C |
25 |
25 |
59 |
75 |
Eligible |
Borrower D |
15 |
10 |
0 |
80 |
Eligible |
Borrower E |
20 |
10 |
0 |
125 |
Not Eligible |
Name of the Borrower |
Overall Outstanding of the Borrower across MLIs (INR Crore) |
Overall Outstanding of the Borrower with MLI (INR Crore) |
Total Maximum Loan Amount allowed under the scheme (INR Crore) |
Total Maximum Loan Amount allowed without NOC for MLI (INR Crore) |
A |
B |
C= 20% of A |
D= 20% of B |
|
Borrower A |
20 |
15 |
4 |
3 |
Borrower B |
5 |
2 |
1 |
0.4 |
Borrower C |
25 |
25 |
5 |
0.5 |
Borrower D |
15 |
10 |
3 |
2 |
Interest Rate on GECL shall be capped as under:
Following are the major & important amendments proposed by the Hon’le Finance Minister in her budget presented on 1st February 2020:
1. Rates of Income tax
The Finance Minister has given option for two schemes of rates of taxation and assesse is free to choose any one of the following schemes:
*Conditions:
A Deduction u/ch VI-A not to be claimed:
In case where lower rates of taxation are opted (i.e. new proposed scheme), deduction under chapter VI-A shall not be allowed. To elaborate, no deduction u/s 80C (Investments in PPF, LIC, NSC etc.), u/s 80D (Medi-claim), u/s 80E (Interest on Education loan), u/s 80G (Donation), u/s 80U (Disability deduction), u/s 80GGA & u/s 80GGC (donation to political parties) etc. are not allowed to be claimed. However the only deduction that shall be allowed are, u/s 80CCD (National Pension System upto Rs. 50,000/-) and u/s 80 JJA (Deduction in respect of employment of new employees from business income). Further a salaried employee would not be able to claim deduction of leave travel allowance, House rent allowance, Standard deduction or other exemption for allowances and perquisites. Also a business assesse would not be able to set off brought forward loss and unabsorbed depreciation.
B Further conditions:
An Individual or HUF having Business Income would be able to exercise the option once and shall be valid for all subsequent years. This option can be withdrawn only once for a previous year thereafter he shall never be able to exercise option under this section. An Individual or HUF having no Business Income shall be able to exercise this option in every previous year.
2 Residential Status :
An Individual shall be treated as resident if he has been in India for a period of 120 days or more (earlier it was stay of 182 days or more in India) in a year or has been in India for a period of 365 days or more within 4 years preceding that year.
3 Due Dates for filing Return of Income:
Certain changes have been proposed in respect of due dates for filing of Return of Income.
Category of return |
Existing Due Date of filing return / report |
Proposed Due Date of filing return / report |
Income Tax Return (without Audit) |
31st July |
No change |
Income tax Return (with Audit) |
30th September |
31st October |
Audit Report |
30th September |
30th September |
Income tax Return (Working Partner) |
30th September |
31st October |
Income tax Return (Non-Working Partner) |
31st July |
31st October |
4 Dividend Distribution Tax:
According to the proposed amendment, Companies would no longer be required to pay Dividend Distribution Tax (DDT) from now onwards. However, Dividend shall be taxed in the hands of recipient of Dividend at the applicable rates of Income tax.
5 Audit of Books of Accounts:
It is proposed to raise limit of turnover for the purpose of getting books of accounts audited u/s 44AB from Rs. 1 crore to Rs. 5 crore. However, the increase in limit of audit turnover is applicable only subject to following conditions:
(i) Aggregate of sales / turnover or gross receipts in cash does not exceed 5% of total sales/turnover or receipts during the financial year
AND
(ii) Aggregate of expenditure in cash does not exceed 5% of total expenditure.
6 Cost of Acquisition for Long term capital gain:
In respect of asset acquired before 1st April 2001, the Fair market value as at 01-04-2001 shall not exceed the stamp value as on 01-04-2001. As such, an assessee would not be able to claim Fair market value in excess of Stamp duty value limiting thereby the benefit of Indexation.
7 Lower TDS on fees for Technical Services:
Under the amended proposal TDS is required to be deducted at 2% instead of 10% on fees for technical services other than professional services.
8 TDS on E-commerce transactions:
Under this proposal, a new section 194-O is proposed to be inserted where, TDS @ 1% would be required to be deducted from the gross amount of sales or services or both payable by e-commerce operator (owner of the e-commerce platform) to e-commerce participant (who uses the e-commerce platform for providing services or selling goods). However no TDS would be made in case of Individual or HUF if gross amount of sales or services does not exceed Rs. 5,00,000/- AND the individual or HUF provides PAN / Aadhar to the e-commerce operator.
9 Vivad Se Vikas Scheme:
According to us, this is the major highlight of this Budget. This government has taken many steps in past few years to reduce the tax litigations. The Sabka Vishwas scheme resulted into settling over 1,89,000 cases.
As of now, there are almost 4,83,000 direct tax cases pending in various appellate forums i.e. Commissioner (Appeals), ITAT, High Court and Supreme Court. Under the "Vivad Se Vikas" scheme, a tax payer would be required to pay only the amount of disputed taxes and will get complete waiver of interest and penalty portion, provided that the Taxpayer pays the tax amount by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay a certain additional amount. The scheme will remain open till 30th June, 2020.
Taxpayers in whose cases appeals are pending at any level can avail benefit from this scheme.
Authored by-
Shaishav D. Mehta, FCA
(E) shaishav@sdmca.in
READ MOREHighlights of Economic Reforms announced by our FM
As all are aware the Indian Economy is facing a slow-down. There is a fear of unemployment on a large scale in private sector. There was a pressure on government to come with relief measures to save the economy and depressed capital market. Finance Minister Mrs. Sitharaman announced certain measures to revive economy and capital market. She has also assured further measures in a short-while to stimulate economy. The following is the summary of measures announced by the Finance Minister on 23rd August 2019:
In order to infuse funds in the banking system, following measures have been announced:
A number of welcome measures are announced to infuse liquidity in NBFC and HFC (Housing Finance Companies)
Following provisions are announced in GST:
The forgoing was a summary of certain important measures taken by Government to face the problem of economic slow-down. The FM has further promised stimulus measures to be announced shortly in this regard. The measures if implemented properly shall definitely put the Indian economy in upper gear.
Shaishav Mehta (FCA)
(M) 9727595108
S. D. Mehta & Co.
Chartered Accountants
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