Request For Escrow Deposit Receipt Verification: Fill & Download for Free

It’s important for home buyers to understand that a mortgage commitment letter in NYC does not guarantee that the bank will fund your loan.As you will see from the NYC mortgage commitment letter sample below, there are many contingencies in place for the bank to revoke its loan commitment to you. If you’re about to submit an offer and deciding whether to waive the mortgage contingency, it’s important to understand what a mortgage commitment letter entails and how much assurance a loan commitment offers you in the first place.What does a NYC mortgage commitment letter sample look like?This is an example of a standard mortgage loan commitment letter that would be issued to a New York City condo or co-op apartment buyer. There are additional sections in this NYC mortgage commitment letter sample you should review such as Commitment Conditions.MORTGAGE LOAN COMMITMENTBorrower Name(s):Borrower Mailing Address:Lender:Property Address:Type of Property: [Condo, Co-op, etc.]Commitment Expiration Date:Date:It is a pleasure to notify you that your application for a mortgage loan has been approved subject to the following matters set forth below and on pages 2 and 3.INSTRUCTIONSPlease sign, date and return Lender’s copy of this Commitment, along with any required fees and items requested, to the Lender at the following address, within 15 days of the date hereof, or at the option of Lender, this Commitment shall become null and void. Should you have any questions, please contact:This approval is not a final commitment. Due to the fact that interest rates are subject to change without notice, your approved payment and loan amount may change if interest rates increase or decrease.EFFECTIVE DATE AND COMMITMENT FEEThis commitment will become effective upon compliance with the terms herein and, if applicable, the receipt of your check in the amount of any non-refundable commitment fee (“stand-by fee”). It is understood and agreed that if this mortgage loan is not settled in accordance with the terms and conditions of this commitment, the Lender shall retain this fee as earned charges for the origination and approval of this loan.AMOUNTS, TERMS AND FEESAmount of Loan $[Amount]Initial (Contract) Interest Rate [Rate]%Loan Term [Number] monthsAmortization TypeBalloon Term (if applicable) [X] monthsLoan TypeLien Position 1st LienPAYMENT (P&I)Your initial interest only principal and interest (P&I) amount is $[Amount]. This amount does not include any escrowed amounts and may change if there is a change in loan terms.ESCROW[ X ] An Escrow Account is not required.[ ] An Escrow Account is required.Even if an Escrow (Impound) Account is not required at time of settlement, subject to the terms of your specific loan documents, the Lender may set up and require an Account should the taxes or insurance on the subject property ever become delinquent.EVIDENCE OF TITLEThe Evidence of Title is to be provided to the Lender and must indicate no liens, encumbrances, or any adverse covenants or conditions to title unless approved by Lender. The Evidence of Title must be issued from a firm or source, and in a form, acceptable to Lender. Borrower will be charged for the cost of providing such title and the cost of recording documents, all of which will be ordered by Lender unless requested otherwise.CANCELLATIONThe Lender reserves the right to terminate this commitment prior to the settlement of the loan in the event of an adverse change in your personal or financial status, or if the improvements on the property are damaged by fire or other casualty.REQUIRED ITEMS OR CONDITIONSAll Items Listed on the Commitment Conditions Addendum Apply.THE FOLLOWING CONDITIONS MAY APPLY TO YOUR LOAN DEPENDING ON THE LOAN TYPE AND TERMS.BALLOON MATURITYA balloon loan matures before the loan is fully amortized. The balance of the loan will be due in a lump sum payment at maturity.FIRE AND EXTENDED COVERAGE INSURANCEPrior to settlement, we will require an original insurance policy and/or binder containing fire and extended coverage (i.e., windstorm, hurricane, hail damages, or any other perils that are normally included under an extended coverage endorsement) insurance in an amount equal to the lesser of 100% of the insurable value of the improvements, or the unpaid principal balance of the mortgage as long as it equals the minimum amount (80% of the insurable value of improvements) required to compensate for damage or loss on a replacement cost basis through a company acceptable to the Lender, and a receipt showing premiums paid in advance for one year. The insurance policy shall also contain a standard mortgage clause in favor of Lender. We cannot require you to obtain a policy which exceeds the guaranteed replacement cost of the improvements securing the loan.If the property is new construction and you are not able to occupy the property immediately after closing, you will be required to furnish an original fire/hazard insurance policy or binder, including a Builder’s Risk Rider. If this is a renovation of an existing dwelling that will remain occupied, a Builder’s Risk Rider is not necessary.GOVERNMENT INSURED LOANSLoan Commitments issued for these types of mortgage loans, including, but not limited to FmHA, RHS, FHA, and VA, are subject to all the terms and conditions of the Agency’s commitment, or the VA certificate of reasonable value, as well as the rules, and regulations, and all applicable requirements of the Farmers Home Administration, Rural Housing Service, Department of Housing and Urban Development, the Department of Veterans Affairs, and/or other state or municipal authority.FLOOD INSURANCEBy signing and accepting this commitment, you acknowledge that if the property securing this loan is in an area identified as having a special flood hazard you agree to these insurance requirements.Our policy, in order to best protect collateral interest, is to adhere to the more common industry practice of requiring flood coverage for the lesser of: the full 100% Replacement Cost Value or the maximum amount of insurance available under NFIP for the particular type of building; currently $250,000 per residential dwelling/condominium unit. A copy of the declaration page or application signed by the agent, along with proof premium has been paid, is required prior to closing.Flood insurance is mandatory now or in the future if this property has been or will be determined to be in an area which has a special flood hazard. Federal Law requires that flood insurance, available through any agent, must cover the lowest of: the outstanding principal balance of the loan[s]; the maximum amount of coverage allowed for the type of building under NFIP or the full replacement cost value of the building or contents securing the loan.TAX AND INSURANCE PAYMENTSMonthly deposits and initial deposits as determined by Lender are required to cover the payment of estimated annual real estate taxes, special assessments and, if applicable, FHA or Private Mortgage Insurance Premiums. Lender may also require additional deposits for hazard or other insurance if required for this loan. Such deposits are to be placed in a separate escrow or impound account.SPECIAL ASSESSMENTSIf required, all unpaid and future special assessment installments must be paid in full prior to, or at time of settlement.DOCUMENTATIONThe mortgage or deed of trust, note and other pertinent loan documents will be provided by Lender and must be signed by all applicants that are to be contractually liable under this obligation. Further, the mortgage or deed of trust must be signed by any non-applicant spouses if their signature is required under state law to create a valid lien, pass clear title, or waive unclear rights to property. Note: Samples of loan documents are available upon request.ADDITIONAL CONDITIONS FOR CONSTRUCTION LOANS.CONSTRUCTION LOANS: ONE PAYOUT AND MULTIPLE PAYOUTImprovements are to be built in a good and workman-like manner in strict accordance with plans and specifications furnished Lender and in compliance with applicable building codes. After completion, said improvements shall be approved by a representative of Lender and an occupancy permit shall be issued by local municipality. Any changes, whether they be additions, deletions, or alterations, of the plans and specifications, must be approved in writing by Lender in order that this loan commitment remain in effect.CONSTRUCTION LOANS: MULTIPLE PAYOUTEvidence must be submitted that the net proceeds of our loan are sufficient to complete the construction of the building, free and clear of all claims of Mechanic’s Liens for labor and material. All disbursements will be made upon the order of the borrower upon presentment of proper waivers of lien, subject to compliance inspections by the Department of Veterans Affairs, the Federal Housing Administration, or Lender, not to exceed 80% of the value of the work done. The remaining funds will be held back until the certificate of completion and/or occupancy certificate is issued.I (WE) accept the terms and Conditions of this Commitment and will notify Lender if there are any changes to the information provided on the application before the closing of the loan.Borrower DateCOMMITMENT ISSUED ON BEHALF OF LENDER BY:Take special note of the cancellation clause listed above. If you lose your job or suffer some other financial setback, the bank will have cause to terminate your loan commitment!What are some typical commitment conditions in a NYC mortgage commitment letter sample?This is an example of a some typical commitment conditions in a NYC mortgage commitment letter sample. Note the long check-list of tasks that must be completed in order for the lender’s commitment to be valid.COMMITMENT CONDITIONS(Attachment to Mortgage Loan Commitment)Borrower: The Closing Disclosure will be provided to you in advance of your closing indicating your loan terms and is followed by a government mandated waiting period before the actual closing occurs. Receipt of the Closing Disclosure does not indicate all loan conditions have been satisfied which must occur prior to closing. Changes of any kind that occur after the final Closing Disclosure has been delivered to you may result in an additional waiting period prior to closing.Borrower: This loan is also subject to all other lender specified conditions and must comply with all applicable federal, state, and local laws and regulations.Lender: Verification from the Lender’s Closing Agent / Attorney that a Recognition Agreement has been executed by the the Cooperative Board and received by the Closing Agent/AttorneyLender: Title to have Recorded UCC1 lien search at time of closingLender: Recognition agreements and stock certificate required at time of closingLender: This loan is approved for a maximum interest rate of — [ ]% (qualifying pmt)Lender: If the loan does not close by the expiration date of the credit documents which includes verification of employment, assets and credit, re-verification will be required. To avoid re-verification the loan must close by: [Date] (rate)Lender: Obtain a completed and signed Form 4506-T (written permission to request tax returns from the IRS) for all borrowers at and before closing. — ** rcvd prior to closing **Lender: Closing agent to verify borrower(s) identityLender: Fully executed and signed Social Security Administration release (form OMB #0960–0760)Lender: Loan was approved based on the following parameters: Debt to Income Ratio not to exceed [ ]%; Total Reserves required for Transaction are $[Amount] or 12mos (subject to change) plus closing cost & prepays of $[Amount] (subject to change). Required Liquid Funds for transaction can be no less than $[Amount]. If any of these parameters change, as required by product guidelines, the loan will be subject to re-underwriting.Lender: If the loan does not close by the expiration date of the following documents, re-verification will be required:Appraisal: [Date] Verbal VOE: [Date] Rate: [Date] Lien Search: [Date] Co-Op Approval: [Date]Lender: No subordinate financing allowedLender: Seller paid closing cost may not exceed actual costs, the maximum amount that can be paid is — $[Amount]Lender: No cash out to borrower(s) at closingNote that this hypothetical lender does not allow any subordinate financing. That means you won’t be able to take out a 2nd lien home equity line of credit at a later time. Please also note that if your purchase doesn’t close in time, the lender may need to re-do the underwriting process.Sample Mortgage Commitment Letter InstructionsCONGRATULATIONS!Your application for a [Bank Name] Co-op Loan has just been approved. Enclosed you will find a commitment letter which provides you with specific details regarding your loan approval. We urge you to read it carefully as it contains important information on the financing terms and the documentation that is required in order to close your loan.WHAT ARE THE NEXT STEPS?You must sign the commitment and return it to us within ten (10) days of the commitment or before the expiration date, whichever is sooner with any fees specified. Please note that this commitment letter contains two critical dates. If you elected to lock in your interest rate and points there is a rate expiration date. If you do not close your loan on or before the rate expiration date, the terms and conditions will change.In addition, there is credit document expiration date. If you do not close your loan on before this date you will need to satisfactorily update certain credit documents in order for the terms and conditions of this commitment letter to apply. If your rate and points have not been locked, the rate expiration date will be established once you elect to lock in your rate. You must lock in your rate at least five business days prior to loan closing.Please read the commitment letter and riders carefully, as they contain conditions that must be satisfied prior to your loan closing. It is incumbent upon you to make sure that we are in receipt of all items listed. These items must be reviewed and approved at least three (3) days prior to loan closing. Again we must emphasize that you cannot close your loan unless all these items have been satisfied.We have notified the closing attorney for [Bank Name] of this loan transaction.Arrangement and instructions for closing your loan should be obtained by contacting the [Bank Name] attorney named in your commitment letter. A loan closing can be scheduled shortly after all necessary documents have been received by [Bank Name].The [Bank Name] attorney will be able to provide you with specific information regarding the following:-Closing Date-Closing Location-Prepaid Interest and Escrow Funds-Co-op Lien Search Requirements-Survey Coverage Requirements-Insurance Requirements (Hazard/Flood/Condominium/Co-op)We encourage you to have your attorney contact the [Bank Name] closing attorney to review the requirements. This should help to ensure that your closing goes smoothly.Thank you for choosing [Bank Name] for your financing needs. We are delighted to have you as a client.What are sample closing conditions in NYC?Dear [Borrower],We have received today from [Bank Name] a copy of a commitment letter for a co-op loan and will represent [Bank Name] at the closing. Please be advised that we cannot schedule a closing unless we receive confirmation that the conditions required by [Bank Name], prior to closing, have been satisfied and the conditions required at closing will be obtainable and brought to the loan closing.Enclosed with this letter you will find three copies of Recognition Agreements. The Recognition Agreement must be delivered to and executed by an Officer of the Cooperative Corporation. The fully executed Recognition Agreement must be delivered to our office prior to loan closing or it must be brought to loan closing. We will be unable to close a co-op loan without the original executed Recognition Agreement with the corporate seal.Enclosed with this letter you will find a Uniform Commercial Code Authorization Form. This document must be signed by each person who will be on title and promptly returned to our office. This document is necessary for [Bank Name], to obtain a security interest in the cooperative. Upon our receipt and/or confirmation of certain information i.e. section/block/lot numbers of the building same will be inserted in the financing statement prior to filing. Please be sure to note that the executed Uniform Commercial Code Authorization Form and the check required by paragraph 3 below must be remitted to our attention at the time you accept your commitment letter to a assure a timely closing.To ensure that [Bank Name] has a proper security interest, a Cooperative search of the appropriate records will be conducted solely for [Bank Name]’s benefit. The search will be ordered by our firm and will be reviewed and approved by our office prior to loan closing. Payment of the lien search must be remitted to our office at the time you send back the UCC-1 Authorization form. The cost of the search is $275.00 and the filing fee for the UCC-1 is $100.00. Please remit a check for $375.00 made payable to [Name] for the lien search and the recording of the financing statement.Unless paid prior to loan closing, all charges and fees due to [Bank Name] must be paid from the loan proceeds. If you call our office the day before loan closing, we will advise you of the exact amount being deducted from loan proceeds.The commitment letter has two expiration dates; one is the Commitment Expiration and one is the Rate Lock Expiration. The loan must close and funds must be disbursed on or before the earlier of the Commitment Expiration or the Lock-In Expiration. In the event the loan is a refinance transaction and it is subject to the required three (3) business-day right of recission it must close four (4) business days prior to the expiration of any applicable rate lock agreement.Please note that a closing cannot be scheduled until the following items have been completed:– We have been advised by [Bank Name] that all commitment conditions have been satisfied.– The U.C.C. -1 financing statement has been filed.– The co-op search has been reviewed and approved– We have a copy of the proposed Stock Certificate and the first page of the Proprietary Lease. At closing, the original Stock Certificate and Proprietary Lease must be delivered to [Bank Name] Closing Attorney.– We must be in receipt prior to or at loan closing of a blanket insurance policy for the co-op evidencing sufficient dwelling coverage.[Bank Name] requires at least two (2) business days to schedule a loan closing.We are committed to providing you with the highest level of customer service. If you should have any questions please feel free to call us at [Phone Number].Content courtesy of https://www.hauseit.com/nyc-mortgage-commitment-letter-sample/Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Recently 50 Indian Revenue Service (IRS) Income Tax (IT) Officers supposedly volunteered to provide a document of suggestions called F.O.R.C.E. [Fiscal Options and Response to COVID-19 Epidemic].The CBDT has strongly condemned the release of the report in social media by stating as underCBDT disowns IRS Officers Report report circulating on social media regarding suggestions on tackling COVID-19 situation; Makes it clear that“CBDT never asked IRS Association or these officers to prepare such a report. No permission was sought by the officers before going public with their personal views and suggestions on official matters, which is a violation of extant Conduct Rules.”;While stating that necessary inquiry is being initiated in this matter, CBDT re-iterates that “the impugned report does not reflect the official views of CBDT/Ministry of Finance in any manner.”However I am giving summary of their report belowThe preface to the document prepared by them states that “this volunteering initiative tried to identify actionable areas to mobilise revenue while protecting taxpayers’ welfare as a fiscal policy response in general and response of direct taxes administration in particular.”The conclusion drawn by them is reproduced here“Thus, it is clear that:a) the Government needs to spend considerably more to revive the economy; andb) it needs to raise additional revenue, but in ways that must not burden the already distressed common man.The Government therefore has an uneviable task of spending more - As investment, relief measures, stimulus, health care etc and also balancing a fiscal deficit which will happen due to greater spending but lesser revenues due to COVID disruptions and an already faltering economy that was not growing at the pace it should.The Report expects that there will be non-compliance by taxpayers due to genuine hardship caused by the COVID-19 virus which will lead to a decline in revenue collection and also an erosion in the tax base.In summary the Report states that while there will be non-compliance and that this non-compliance may help the economy in the short run, it should not be encouraged as it will reduce tax base which will be difficult to recover. It also states that non-compliance may become a norm even when the economy rebounds and it will be hard to get people to comply. It also states that choice of non compliance will be discretionary making it unjust and inequitable.The Officers have in their report raised certain suggestionsREVENUE MOBILISATIONa) Short term measures (3–6 months)Raising of higher slab rate of tax to 40% from the existing slab rate of 30% for total income above threshold of Rs. 1 CroreAn alternative suggestion of re-introducing wealth tax for those with net wealth of Rs. 5 Crores or more. The rate of wealth tax was not specified but it could be 1–2%Increase in surcharge applicable to foreign companies having a branch office or a permanent establishment in India.They have suggested that the revenue garnered through these measures should be kept in an escrow account against which the government will identify certain specific projects or expenditure which will have a decisive impact on the economy and commit to utilising the taxes garnered through the above measures only on those items. It is suggested that the information be made public with a live spending meter to show how much is spent on what measures.COVID Relief Cess of 4% as a one time levy in cases where the taxable income is greater than Rs. 10 Lakhs so as to help finance capital investment in COVID Relief work.Currently no deduction is allowed for expenses under CSR as per Companies Act. It is suggested that companies undertaking COVID relief activities under CSR be allowed to claim as allowable expenditure for the FY 2020–21Suggested to allow payment of non-managerial staff salaries as part of CSR obligations.To include CM Relief Fund as a CSR ActivitySuggestion to devise a scheme where unusued CSR fund upto FY 2019–20 can be partly used to donate to the PM Cares Fund and balance to be used for business activity. Suggestion is 75% to PM Cares Fund and 25% to Business Purpose.To consider contribution to PM Cares Fund and CM Relief Fund as CSR not just for FY 2020–21 but also for FY 2021–22To allow deduction to PM Cares Fund u/s 80G not just in current year but to spread the benefit over the span of next three years at the option of the donor.To extend benefit of donation u/s 80G to those companies who are making a donation to PM Cares Fund and opting for new regime of lower tax rates only for the FY 2020–21. (Under new lower tax regime no deductions under Chapter VI were otherwise allowable)To issue COVID Savings Certificate like National Saving Certificate so as to mobilise money. It is proposed that person investing in such scheme will be allowed a deduction of upto Rs., 2,50,000/-. The scheme to be open to Individuals, HUF, Charitable entities and Political Parties.Amnesty Scheme for collection of undisputed demand with waiver of interest in part or full as well as undisputed penaltyb) Medium Term measures (9–12 months)Provision of tax discounts and rebates in percentage points for those tax payers who are complying in a timely manner. This will incentivise tax complianceImpose additional tax liability on corporations making base eroding payments such as interest and royalty to foreign related party. It is to be levied as an alternative tax on modified taxable income where the modified tax exceeds the normal income tax liability. This is suggested to curb tax evasion by MultinationalsReintroduction of inheritance tax. in some countries this is as high as 55%.Increasing taxes levied on Overseas Citizen of India on capital gains accruing out of inherited properties by 10%Increase in Equalisation Levy by 1% i.e. from 6% to 7% for ad services provided by non resident entities online, and from 2% to 3% for non resident e-commerce entities.Tax department can encourage the super rich and those willing, to give up at least one tax subsidy/tax deduction/ tax concession for only a year- for e.g. an individual could voluntarily opt for giving up his/her 80C deduction for a year.Other tax measuresA complete tax holiday / tax break is proposed for the next 3 years for all corporates, firms and businesses operating in the healthcare sector which is to include manufacturing of pharmaceuticals, medical grade masks, gloves, gowns, ventilators, testing labs, construction contractors involved in building of hospitals/primary health centers, etc.Tax incentives in the short run can aim at businesses that find it easier to operate with social distancing, so that their immediate economic and revenue potential can be fully maximized. However, long term tax incentives should target those workplaces which will find it harder to operate in the ‘new normal’EXPENSE RATIONALISATIONDefence Expenditure to be scaled down by postponing acquisitions where process has not kick startedExpenditure on ambitous projects like bullet train where work has not started to be held backRe-orient expenditure budget presented in February 2020 to meet funding requirement in Q1 to fight COVID. They have suggested that apart from amount set aside for infrastructure works in Ministry of Railways and Ministry of Road Transport and Highways atleast Rs. 1 Lakh Crores of capex be used for COVID works. And out of Revenue expenses, atleast 10% saving to be done equivalent to Rs. 263,014/- Crores to be used for COVIDDirect cash transfer of Rs. 3000-Rs. 5000/- a month for atleast 06 months, to beneficiaries including agricultural labourers, farmers, daily wage earners, informal sector workers and others. Economic studies have estimated this population to be around 12 crore households, comprising of 60 crore individuals.Enlarge the budget allocated to MNREGA and ensure guaranteed work for the marginalized. The scheme to focus on public works programmes such as building of rural roads, public health infrastructure, primary school buildings and the like.To support MSMEs by giving some form of wage support so that employees may be retained or given paid leaveTAXPAYER WELFAREShort Term measures:I. Measures to boost consumption and improve disposable income:i. Short term capital loss made by retail investors due to recent stock market slump should be allowed to be set off from salary income.ii. Amount spent on treatment of hospitalization due to Corona should be allowed as deduction under section 80DDB. This requires notifying Corona under Section 80DDB.iii. The bonus or any other allowances given to the employees with annual income 10 lakhs should not be considered as taxable income at the hands of employees.iv. The taxpayers can file return within due date and there will be option of paying the self assessment tax after 6 months of filing the return.v. Individual taxpayers who lost the job were allowed to defer the tax payment for 6 months or till the new job is found, whichever earlier.vi. Withdrawal from NPS and other small saving instruments should be made 100 percent tax free. This should also apply to interest chargeable on KVP.vii. Increased deduction for payment of interest over purchase of house, automobile etc. Increased deduction under section 80C can be provided for payment of interest over the loan taken for fresh purchase of property and automobiles, electronic items which have been made in India completely.II. Support for MSMEs:i. RESTORE THE CASH TRANSACTIONS LIMIT UNDER SECTION 40A (3) AND 40A(3A) TO 20000: the COVID crisis has hit the economy really hard and worst hit is the informal sector. what people would be looking for in this sector is hard cash. But a low limit of 10000 may inhibit firms from dealing with workers. a higher limit would certainly go a long way.ii. Provision for carry back of net operating losses arising in the current and previous financial year upto five years may be introduced. This provision will especially beneficial for start-ups. It will improve cash flow by way of immediate refund of taxes paid earlier.iii. Due to the current crisis, there is likely to be a significant delay in tax audits under section 44AB. Thus assesses having income unto 10 crores may be exempted from tax audit requirement for the current fiscal year only.iv. Presumptive taxation under 44AD should be allowed at 6 percent for all transactions and not just digital transactions.v. TDS deducted u/s192 for the employees can be deposited by the end of the FY, rather than monthly deposit. This will give relief for the deductors and ease the cash flow pressure for the business and able to maintain the payroll without any job cutsvi. MSME whose total tax liability is less than 5/10 lacs be given a tax moratorium (deferment only) for 1 year. It will result in a positive cash flow of 33% for thoseIII. General tax relief measures for corporates:Advance tax relief: Advance tax payment schedule may be rationalized to mandate a payment of only 25% of total taxes till September 2020 (u/s 234C of the Act) without payment of interest. or Considering the reliefs and incentives announced and proposed by the government, the viability of collection of advance tax at 25%, 55%, 80% and 100% by the respective dates can be considered. OR the tax collection may be advanced in three instalments of 50% by September 15th, 85% by December 15th and 100% by March 15th to that the government can balance the reliefs with the tax collections.The rates of interest on delayed payment of advance taxes could be lowered (to say 0.5 % per month from the existing 1%) Further, all the taxpayers had paid advance tax in 2019-2020 based on expected incomes which did not materialize in March. They have paid extra advance tax on that account. They may be allowed to carry forward some excess of the advance tax paid to this year.Corporate tax relief for stressed sectors:As a one-time measure, the option of providing reduced corporate tax rate to companies which have suffered a reduced turnover beyond a threshold (say 25%-30%) during the FY 2020-21. Certain conditions may be attached to avail the same e.g.. No reduction in no. of employees, there is no re-constitution of business by way of merger / de-merger, slump sale, amalgamation etc., no other incentives are availed etc. Such an incentive will also aid the travel and tourism industry, including the aviation sector, which has been hard-hit by the pandemic.Carry forward losses/MAT/AMT credit expiring on March 31, 2021 may be carried forward till March 31, 2022. Brought forward losses of taxpayers that will be expiring on March 31, 2021 under the provisions of Section 72 of the Income Tax Act, 1961 along with MAT and AMT credit under Section 115JAA and 115JD of the Act may be extended till March 31, 2022.The “Speedy Refund programme issued to all taxpayers without any distinction in a phased manner depends the fiscal cost involved. Including refunds witheld due to issue of scrutiny notice.Increased depreciation expenditure to promote capital expenditure such as on Building and Plant and MachineryRelief in late filing fee of ITR, TDS returns and late deposit of TDS for Q4 of FY2019-20, Q1 &Q2 of FY2020-21 provided returns were filed in time.Interest on late deposit of TDS as deductible expense during FY 2020-21Salaries deduction under section 37(1)to be made weighted average of 200 %. This will incentivize employers to not layoff workers.Section 80JJAA may be amended to provide tax relief for MSMEs at the rate of 30 percent on the wages cost, on retention of 90% of workforce at full compensation and benefits till filing of return for AY 2020-21.Losses for the previous year 2020-21 can be made a separate category and given same treatment with respect to set off and carry forward as unabsorbed depreciation.Bring some expenditure out of ambit of section 43B: firms in this crisis will face a problem of cash flows particularly interest. Hence interest payments can be allowed on due basis as an exception to this year.-Extend the benefits of depreciation for plants in backward areas of certain states to all the states.-Amendment in section 40A (13): to bring mark to market losses due to sudden change in market conditions under the ambit of deductible expenses.-The time limit for VIVAAD SE VISHWAS scheme should be extended from present 31st march 2020 to 31st December 2020 so at to benefit taxpayers who are stuck in litigation and unable to avail the scheme benefits due to lockdown.Exemptions to the sectors under section 10A, which the government has announced will be phased out can be extended for another 5 years.For businesses engaged in aviation companies (passengers), hotels, automobile, construction and real estate sector.TDS deduction for payment to businesses engaged in the aforementioned sectors may be waived off or be allowed at nominal rates to support the liquidity position of businesses.This can also be facilitated by an upward revision of the monetary threshold for TDS deduction.-For the real estate sector, the time limit construction of affordable housing project under to get tax relief under section 80-IBA should be extended from 5 years to 7 years considering the downturn in the economic activity due to the present crisis. Further, the requirements in terms of area of plot and the size and stamp duty value of residential units to allow the project to qualify for tax relief under the said section may be relaxed to benefit more projects than what was originally envisaged. Similarly,moratorium on the notional rent income from the inventory should be extended for another 3 years or till there is boom in the real estatesector, will bring more relief to the already stressed sector.Expenses incurred by companies in enabling Work from Home (WFH) for its employees can be allowed as an eligible business expense and weighted deduction of 150% can be considered. This could include steps like development of Virtual Private Networks, data storages etc.ESOP taxation benefits: It can be provided to startups under section 192 as part of the Finance Act 2020, can be extended to regular employers for the current fiscal year who as a part of cutting their expenses can deduct the salary of their employees and grant them shares, leading to equity infusion.The Government should issue a clarification stating that there would be no impact on the determination of POEM of Companies under the domestic law on account of Board meetings taking place through video conferences and extended stays of employees in India due to travel restrictions.IV. For the health sector:DEDUCTION UNDER SECTION 35AD: currently losses under section 35AD are not allowed to be set off from profits of any other business except specified business under section 35AD. This deduction under the current year for the hospital business can be allowed to be set off from other businesses. Similarly, Manufacturing of PPE, ventilators and face masks can be notified as a specified business under section 35AD to allow deduction for all the capital expenditure done in course of setting up a new business.-Deduction under 80GGA extended to 125 percent of amount paid to any research association which has as its object the undertaking of scientific research for the purpose of developing medicines or ventilators etc. to fight the Corona outbreak.Additional Depreciation should be allowed on machinery bought for manufacturing PPEs and Ventilators, masks, glovesetc. to support the activities to meet the increased demand in the covid-19 management.-“Zero tax for Healthcare workers”: The healthcare frontline workers should be given complete relief for this FY from paying tax. It is the appreciation for the courage of the corona warriors who fought this pandemic by risking their lives.V. Serving the service sector:PROVISION FOR BAD DEBTS IN CASE OF BANKS (section 36(1) (viia): this can be raised from 8.5 % to 12% for Indian banks, 7.5% for public financial institutions, SFCs, NBFCs. considering the widespread losses to business and subsequent rise in NPAs, banks would need cushioning to protect their lending ability so that economy can revive.Exemptions to IT sector under section 10A, which the government has announced will be phased out can be extended for another 5 years.VII. For NGOs to be partner in covid relief:All relief work towards Covid relief can be deemed to be considered a part of definition of charity as stipulated in the Section 2(15) of the Income Tax Act so that activities can be suitably carried out by the various charitable institutions.NGOs can be allowed an additional deemed application of 1% of their gross income to account for additional expenditures for which they may not have additional proof of expense for some time frame.Donations in cash above Rs. 10000/- to be allowed to assist the mobilization of the resources suitably by the NGOs, subject to the verification later on through the donation receipts and donor details.Expenditure in cash above Rs. 10000/- can be relaxed allowing deductions to the NGO for higher amounts subject to the verification of the bills and vouchers.Inter charity donations other than corpus donation should be allowed not restricted to the similarity of the subjects of the donor trust and the donee trust, if the purpose is covid relief and response, subject to the application determined vide Circular no 1132 dt 5-1-1978 and Instruction Number 1582 dt 19-10-1984.Substantial refunds of many trusts due to the TDS wrongfully deducted by the payers/ donors treating their payments as professional/ contractual income inspite of 12A registration of these trusts, are pending and their release must be expedited to ease the liquidity crunch which is being faced by these charitable institutions.Bringing long term capital gains and short term capital gains in definition of adjusted total income and allowing deductions on cash donations up to a certain limit. u/s 80G. Similarly, cap on overall deduction under 8OG to charitable institution can be temporarily lifted from 10 percent of total income to 25 percent, where such donation is given to charitable intuitions engaged in relief of the poor or providing medical facilities.Registered charitable organisations should be allowed to engage in activities other the ones originally mentioned in their deed of registration if it pertains to fighting the current pandemic.-The charitable trust has to spent 85% of the donations received for the purposes of the charitable trust in the same financial year or in the next financial year by giving undertaking in order to take exemption. The donations which are remaining unspent in the two years if donated to PMCARES or specific fund before return filing date, then 200% of such donation will be taken as spent for the purposes of the charitable trust.VIII. Procedural Measures to be undertaken by the Income tax department:To explore a “zero scrutiny year” for the current fiscal year. This will be a bold step but this is required at this time of crisis.Administrations may want to consider suspension of debt recovery, including suspending the garnishing of wages or bank accounts and asset seizures and sales. Otherwise, the scheme of giving 10% reduction in the arrear demand if it is paid within due date can be explored for the capable assesses.The dept. should go for minimum search and seizure operations in the current year, at least till 30 September, 2020.Deferring the applicability of proviso to Section 254 of the Act – mandatory requirement for payment of 20% of demand for stay before ITAT. Relief can also be provided by lowering the above limit of 20% to 10% to assist the taxpayers. This move will help foreign companies which are facing repetitive litigation wherein huge demands are raised on account of issues which involved substantial question of law, particularly for foreign companies.Tax payment facilitation: To facilitate the seamless and timely tax payment, taxpayers can be facilitated by following measures: Other banks which have pan-India presence can be included in the list of the authorised banks to accept tax payment. Some loan facility can be provided by the banks to the taxpayers which can be used for the payment of taxes.Taxpayers facilitation and communication: Short AVs can be released on social media encouraging taxpayers for better compliance as a patriotic contribution towards nation’s War Against COVID-19 with help of DTE. Of PR, PP & OL.T website, print, online & TV may be used for promoting these initiatives. Income Tax official website and PR,PP&OL/Spokesperson/AIIRSA may be used to give appropriate publicity to this initiative of REGION IT.UTILISE ASK CENTRES AS A “FORCE MULTIPLIER” FOR COVID-19The ASK will have an IT-COMAL Desk (INCOME TAX – COVID-19 MANAGEMENT LIASON) manned by a skeletal roster of staff. Act as a temporary single-window to receive requests/queries from taxpayers most affected by COVID-19. such as help with refunds or applications for stay of demand/grant of instalments. The Desk will push the requests to concerned http://PCIT.IT-COMAL. The Desk will also serve as a data bank for identifying business entities and Trusts who may be able to part with Central or jurisdictional state government/s in any COVID-19 related endeavour. For e.g. if Min. of Textiles needs to locate manufacturer who can be contacted for making PPE/masks etc., it can call/email the IT-COMAL Desk.The department should also consider organising a 'Facebook Live' session where it can address the queries and grievances of taxpayers in real time.Creating a Chatbot (or a virtual assistant- 'Tax assistant' like the Google Assistant) on the department website to interact with taxpayers and deal with common grievances that might arise in this situation.VPN access: The Income Tax Department itself should implement the Virtual Private Network so that it is able to work from home also and to be able to continue working in such crisis times in the future.TACKLING TAX EVASIONFocus on underreporting by those entities that should not have lower incomeAnalyse duration and intensity of industry wise lockdown, location of business etcFocus on businesses reporting losses so as to verify doubtful claims and manipulation by consolidated groupsSecure tax witholding through broader surveys and exchange of information with other agenciesWatch for scams such as investor scams, insider trading and impostor scams and to wholly tax such incomeAmnesty Scheme with 65% tax for undisclosed income where 35% will be used for COVIDVigilance on activities by charitable organisation using non invasive methods and data analytics