While the entire Business Operations are shut down, the Business Community is under stress because many have to shut down their operations permanently due various reasons which are beyond their control, which they might not have dreamt of.
To give stimulus to the suffering business community and to fight the epidemic the CBDT can announce immediately the following reliefs to the Tax Payers:
1. To allow as deduction for Corporate Companies the expenditure made for relief of the suffering people due to lock down viz. the ‘Daily Wage earners’ ‘Street dwellers’ ‘People working in other states’ etc., under the CSR (Corporate Social Responsibility), which is hitherto is not allowed as a deduction from their business income, though they have to spend a specific percentage every year. The amount spent till 30.06.2020 should be made eligible for deduction for the year ended 31.03.2020 itself i.e. for the Assessment Year 2020-21. Then only all the companies will rush for spending huge amounts which will in a way help them to build good Public Relation at this hour of crisis.
2. A special deduction can be given, say 10% of the Gross Total Income of all the assessees for the above said expenditure. The deduction should be made available for the Assessment Year 2020-21 (relating to the year ending on 31.03.2020) itself for sum spent till 30.06.2020.
3. Globally the need of the hour is to find out a medicine to cure the affected people immediately and to find out a vaccine to prevent the infection. If it is done the entire world can get a sigh of relief for which it is said that the scientists of the entire world, is working day and night and from the reports it is learnt that this would take a long time. On our part, India has to do something to give a fillip to the Indian Researchers in this field not only to safeguard our own people but also to help the world for which a weighted deduction of 150% can be given to all who offer Income from Business or Profession for the amount spent in conducting researches and for all assessees for the donations to approved ‘Research Institutions’ either run by State/Central Governments or by Private Sector. Then only a large amount of money would be pumped into the research leading to finding out a medicine for cure for the disease and a vaccine for prevention early.