Page 43 - Banking Finance June 2020

ARTICLE

to be high which is major challenges of banking sector the customers through all sorts of communication channels
moreover RBI's 3 months moratorium would further also key area needs to be addressed by all banks what Banks
aggravate the situation and banking will be severely hit out in India are religiously doing for the betterment of customer
of the recession what world is already entered into servicers through existing as well as new innovative ideas.
according to the IMF. The Sept. bad loan expected to surge This COVID 19 crisis has opened new vistas for the Banking
beyond 10% average compare to 9 % last year , EMI needs sectors as well.
to be reworked, the hard hit sectors like automobile,
tourism, aviation, hospitality, Hotel, Consumer Durables, Merger of All Public Sector banks will give banking Sector
Real Estate & Construction would further push the NPA to a new scale of operation.1st of April 2020 we have witnessed
as high as 15 % which is suspected according to the industry the mega merger of 3 banks PNB, OBC & UBI merged into
expert and the obvious fall out will be severe pay cut , single bank called PNB, Govt's merger of 10 Banks into 4
unemployment, job loss , economy is already out of gear, bank will certainly give baking industry a major boost for
loan growth decline with high default ratio. Central Govt. scale of operation, investment into modernisation and
should keep and deploy disaster Management Team or quick digitalization , profitability consolidation of operation,
Response Team for Bank also because of sudden catastrophe globalisation ill led to customer's benefit. Cost of operation
bank should be proactively deal with such unforeseen events will certainly go down. As far as corporate governance and
to safeguard the interests of all stakeholders. standard is concerned will improve including accountability
and effective monitoring. Reduction of multiple position and
In order to improve the liquidity in the market RBI has cut subsequent contraction of surplus unused labour force will
the Repo Rate which is noteworthy cascades the economic dwindle which will augment banking profitability and
revival and infuse more and more confidence among the productivity. It will integrate bank & banking activities to
industrialist . Business continuity and communication with the large extent. T

You can now file I-T returns till Nov 30

In view of prolonged disruption caused by the Covid-19 pandemic, the government on Wednesday notified the extension
of income-tax (I-T) filing deadlines. These include due dates for revised I-T returns for 2018-19 (FY19), declaration of
tax-saving investments for FY19, linking permanent account number (PAN) with Aadhaar, among others. The much-
awaited compliance relief comes as a breather for businesses and taxpayers struggling due to the extended lockdown.
“In view of the challenges faced by taxpayers in meeting statutory and regulatory compliance requirements across
sectors due to the outbreak of Covid-19, the government brought the Taxation and
Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, on March 31, which extended various time limits. In
order to provide further relief to taxpayers for making various compliances, the government has issued a notification
on June 24,” the Central Board of Direct Taxes (CBDT) said in a release.
The due date for revising or filing I-T returns for FY19 has been extended by a month to July 31. The last date for
making tax-saving investments to claim deduction under Section 80C (LIC, PPF, NSC, etc), 80D (Mediclaim), 80G
(Donations), etc for 201920 (FY20) has been further extended to July 31.
“Hence, the investment/ payment can be made up to July 31 for claiming deduction under these Sections for FY20,”
the CBDT said.
Providing relief to small and middle-class taxpayers, the date for payment of self-assessment tax with tax libility up to
Rs. 1 lakh has also been extended to November 30. Self-assessment tax refers to any balance tax that has to be paid
by an assessee on income after accounting for tax deduction at source and advance tax before filling the return of
income. In cases with self-assessment tax liability over Rs. 1 lakh, no extension has been granted and interest will be
levied in case of delayed payments.
The due date for commencement of operations by new special economic zones (SEZs) for claiming tax holiday under
section 10AA of the I-T Act has been extended by to September 30.

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