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Writer's pictureShubham Goyal
May 22, 20201 min read

Government withdraws order on compulsory wage payment by firms during lockdown


Over the past few days, the industry had petitioned the government to withdraw its order on compulsory wage payment as they were themselves facing cash crunches issues.


On Sunday, the Ministry of Home Affairs (MHA) had issued a fresh set of guidelines which will be applicable from Monday. It has repealed the order dated 29.03.2020 which had talked about compulsory wage payment to workers during lock-down.


Statement issued by MHA:


"Save as otherwise provided in the guidelines annexed to this order, all order issued by the NEC (National Executive Committee) under section 10(2)(I) of the Disaster Management (DM) Act, 2005, shall cease to have effect from 18.05.2020."


Employers have welcome the step, saying it was absolutely necessary especially in absence of grants from the government towards wage payment, whereas Trade union leaders have criticized the government's step to withdraw the order as there will be no wage payment from the employer as well as no wage subsidy from the government.



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Writer's pictureShubham Goyal
May 20, 20201 min read

Clarification by CBDT in respect of Residential Status u/s 6 of the Income Tax Act,1961

During the previous year 2019-20, Individual who has come to India before 22nd march, 2020 and :-

  • Not able to leave India or departed on an evacuation flight on or before 31.03.2020, his period of stay in India from 22.03.2020 to 31.03.2020 or to his date of departure shall not be taken in account;

  • Quarantined in India on account of Corona Virus on or after 01.03.2020 and has departed on an evacuation flight on or before 31.03.2020 or has been unable to leave India on or before 31.03.2020, his period of stay from the beginning of his quarantine to his date of departure or 31.03.2020 as the case may be, shall not be taken into account.

 

NOTE: Further circular excluding the period of stay for these individuals up to the date of normalization of International flight operations for determination of residential status of the previous year 2020-21 shall be issued after the said normalization.

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