CBDT releases relief funds to MSME
The Central Board of Direct Taxes (CBDT) issued Rs 5,204 cores as relief funds to MSME (Micro Medium and Small Enterprises) sector. Around 8.2 lakh small businesses have received Income Tax Refunds so far.
Highlights
In the last 10 days, CBDT issued Rs 5,204 crores as Income Tax refunds. The funds were issued to help MSMEs move out of their financial crunches caused due to COVID-19 crisis.
What is the issue?
The lock down has hit the cash flow of MSME sector. The released funds will help to increase the liquidity flow in the sector. Many workers employed in the sector have returned to their home town. Now, even if the government has permitted resuming of works in MSMEs, the industry is to face shortage of labours.
Outstanding Cases
There are 1.74 lakhs of pending cases with the CBDT. These cases are awaiting responses from taxpayers. These tax payers have been sent e-mails requesting them to reply within 7 days.
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Month: Current Affairs - April, 2020