The Finance Minister on 24th March 2020 has announced several reliefs for easing the burden on the citizens of India for complying with the requirement of Income-tax Act, Companies Act, Goods and Service tax laws etc.
A highlight of the reliefs announced today is as below:
Income Tax:
- For FY 2018-19, the last date for filing belated Income tax return has been extended from 31 March 2020 to 30 June 2020
- Due Dates for Issue of Notice, Intimation, Filing of Appeal, Furnish Returns, Sanctions, Applications and other compliances by Tax Payers also extended to 30th June, 2020
- Investment benefits under income tax act, capital gains reinvestments, Chapter VI-A deposit benefits to be extended to 30th June, 2020 (from 31st March, 2020).
- No extension of TDS date. But on delayed deposit of TDS, reduced interest of 9% will be charged in place of 18%.
- Applicability of VIVAD SE VISHWAS SCHEME, date extended to 30th June, 2020 from 31st March, 2020. No 10% additional charge will be levied for all applications made till that date.
- Aadhar PAN linking date extended to 30th June, 2020 from 31st March, 2020.
GST:
- Last date to file GST returns extended to 30th June, 2020 for March, April & May. Specific staggered dates will be intimated.
- No Late Fee, No Penalty for companies having turnover of less than Rs.5 crores. For companies having turnover more than Rs 5 Crores, no Late fee and penalty, only interest at reduced rate of 9%.
- Last date for adopting composition scheme extended to 30th June 2020.
Company Law:
- No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing non-compliant companies/ LLPs to make a ‘fresh start’
- Board Meetings requirement relaxed for a period of 60 days till next 2 quarters.
- Applicability of CARO (Companies Auditors Report Order) 2020, moved applicability to FY 2020-2021 (and not FY 2019-20)
- Additional time of 6 months given for newly incorporated companies, to file Form INC 20A for commencement of business.
- Every company shall have a to resident director, who stayed in India for 182 days in a Financial year. If a director cannot comply with this requirement during this Financial year, it will not be treated as a violation.
- If Independent Directors are not able to hold a separate meeting for FY 2019-20, the same shall not be seen as a violation.
INSOLVENCY AND BANKRUPTCY CODE, 2016
- Threshold for default under IBC raised from Rs 1 lakh to Rs 1 crore, to prevent triggering of IBC proceedings against MSMEs.
- If COVID-19 situation does not improve by April 30, 2020 then Section 7, 9 and 10 may be suspended for 6 months ie. No IBC cases will be filed in this suspension period to avoid forced IBC applications.
BANKS RELATED (DFS RELATED)
- Debit card holders can withdraw cash from any bank ATM, with no charge up-to next 3 months.
- No fee will be levied for not maintaining minimum balance for bank accounts for the next 3 months.
- Bank charges reduced for digital transactions related to all trade finance.
Others
- Customs clearance shall now be treated as an essential service, till June 30th, 2020 it will be working 24/7.
The Finance Minister clarified that no financial emergency will be declared. The finance ministry is already working an economic package to mitigate the impact of coronavirus on the Indian economy.
Click here to access the press conference.
