Ordinance passed for 100% Tax Exemption on donations to PM Cares Fund

On March 31, 2020, the Government of India passed an ordinance to allow 100% exemption on donations made on PM Cares Funds. The ordinance has also extended the time limit of direct and indirect tax filings to June 30, 2020.

Key Features on Direct Taxes

  • The last date for filing Income Tax returns has been extended to June 30, 2020
  • The Aadhaar-PAN linking that has been made mandatory has been extended to June 30, 2020. If not linked the GoI had earlier warned about cancelling such PAN registrations.
  • The deadline of Vivad se Vishwas Scheme has also been extended to June 30, 2020.

Key Features on Indirect Taxes

The last date for indirect taxes of the following has also been extended to June 30,3030

  • Central Excise Returns
  • Taxes paid under Customs Act, 1962
  • Taxes paid under Sabka Vishwas Legal Dispute Resolution Scheme, 2019.

PM Cares Fund

The funds donated to PM Cares Fund are to be 100% exempted from tax under Section 80G of Income Tax Act.

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World Bank: 11 million to enter poverty in Pacific and East Asia

On March 31, 2020, the World Bank announced that around 11 million are to enter poverty in Pacific and East Asia due to the spread of COVID-19. The virus has affected more than 780,000 and has so far killed more than 37,000.

Highlights

According to the World Bank, around 35 million people in Pacific and Asia will escape poverty. This includes 25 million in China alone. The bank has projected the growth in the region to be slow and around 2.1%. In 2019, the bank had estimated the growth of the region as 5.8%.

The bank has projected growth rate of China as 2.3%. Earlier, in 2019, it had predicted China’s growth rate as 6.1%.

Suggestions

The bank recommends more investments in the health sector. It suggests for macroeconomic policies and integrated containment of the virus. The World Bank also recommends targeted fiscal measures such as health care and subsidies for sick pay. This will make sure the temporary deprivation is not converted into long term human capital losses.

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