#Covid19 – death knell or a call to arms

The pandemic has changed business landscapes like never before. Work from home seems to be the new normal. Can businesses go back to the way things were before March 2020.

As with all change, there is resistance and a call for somebody – the Government, the rich, those with better resources, to bail out those who are not. As a developing country, any dole outs made by the Indian Government will eventually be paid for by its taxpayers – the largest group being ordinary salaried employees with automatic payroll tax deductions. So far, most of the relief measures announced only postpone the inevitable – moratorium on loans, extensions in compliance and a wait-and-watch approach to assuaging any financial or economic problems that are bound to flare up as time progresses.

If there is one lesson we should all learn, it is to change with the new norms. Doing the same things we did before may give us the same results as before, but opportunities in the new world will be grabbed by those who are willing to continuously innovate to reduce costs and add value.

It’s great to see that there are several Government offices that have embraced change – particularly the Provident Fund office running video conferences for establishments to address questions, so one doesn’t need to visit the office in person.

In a nutshell, the pandemic, subsequent lockdown and the gradual realization that “normal” will either take longer or look very different in the future should give us pause. Every part of the business ecosystem – business owners, employees, the legislators and regulators – should use this opportunity to look at what business plans, workspaces, laws, ought to look like. And then move towards making that a reality.

One change at a time

#Covid19 has helped shift the spotlight to health, hygiene and environmental issues ignored until now – underscoring the importance of resolving a problem as soon as it has been identified.

It’s time to change – even if it’s one thing at a time. 

Some employees in India impacted by #Covid19 may not receive a salary without State support to businesses impacted by the lockdown and while this is bad in itself, the tax law does not recognize such a situation.  There are deductions available for business related bad debts and rent not recoverable, but no similar provisions for salary not recoverable by the employee. 

It’s time to change the law to allow for special situations where salary is not taxed when due, but only when received.