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COVID-19 Pushes Tax into the Spotlight as Strategy for Resilience

COVID-19 Pushes Tax into the Spotlight as Strategy for Resilience 02/23/2021 | 09:33am EDT Send by mail : Message : Taxation of digital products and services will have the greatest impact on total tax liability Mapping the effects of the pandemic is tax executives’ No. 1 priority for 2021  While an economic downturn had long been anticipated, no one expected a pandemic would plunge the globe into economic chaos with such exacting scope and speed. When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, tax became an integral part of business response and planning for relief. In fact, 99% of tax executives said they’ve been involved in their organization’s response to the economic slowdown caused by COVID-19, according to the

For direct taxes, Budget 2021 has largely maintained status quo

Owing to deep impact on the Indian economy due to outbreak of Covid-19, the central government announced several schemes and relaxations during 2020 to boost and strengthen the economy. In the backdrop of Covid-19 cases reducing and economic recovery from third quarter, the Union Budget 2021 was presented by the Finance Minister (FM) with expectation to provide impetus to the recovery process and lay the ground for a double-digit growth target. The major focus of the Hon’ble FM has been on building the infrastructure and healthcare sector of the country by substantially increasing the allocation. As it has always been said that the real changes are not in the speech of the Finance Minister but in the fine print. This saying stands true for the Budget 2021. A number of clarificatory and procedural changes have been proposed by the Hon’ble Finance Minister in the Memorandum relating to Direct Taxes.

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