Amidst the pandemic, discussions are happening about liquidity, tax compliance and economic development all around the world. The COVID-19 outbreak has proved to be devastating to the economies around the world. India’s GDP has been affected by the negative touchdown. Government of India has taken several steps to help the individuals, corporations and startups. It has taken steps to ensure liquidity in the market and boost the economic development process. The present paper talks about the tax administration, including “The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020” (hereinafter referred to as “Relaxation ordinance”) and “Self-reliant India” that tries to achieve the objective. These policies postponed the deadlines for filing of returns, reduced the rate of return in case of delayed payments, etc.