Due to rapidly increase of Corona Virus cases in the country, Finance Minister Nirmala Sitharaman made several announcement to stablise the economy which has been hit hard by COVID-19. Nirmala Sitharaman addressed the media at 2pm Tuesday. Here are the highlights from press conference:-
1. FY 18-19: Last date of filling Income Tax return is extended to 30th June, 2020.
2. Instead of 12% or 18% p.a., 9% interest will be levied on delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020,( i.e. 0.75% per month instead of 1/1.5 percent per month). No late fee/penalty will be charged for delay relating to this period.
3. Adhaar-Pan linking date extended till 30th June.
4. Vivad se Vishwas scheme has been extended to June 30, no 10% additional charges.
5. Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of returns, return statements, applications, reports, and any other documents and any compliance by the taxpayers, including investment and savings instruments for rollover benefit of capital gains under Income-tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT law, Vivad Se Vishwas law, and others, where the time limit was expiring between 20th March to 29th June 2020, is extended to June 30, 2020.
Goods and Service Tax (GST)
6. Businesses with turnover upto 5 crore and having any GST Return (Normal or composition) due date in the month of March, April and May is extended to 30th June, 2020. In other words, no interest, late fee or penalty will be charged for GST returns till 30th june,2020.
7. Businesses with turnover above 5 crore and having any GST Return due date in the month of March, April and May is extended to 30th June, 2020. However, interest will be charged at a reduced rate of 9 % per annum from 15 days after due date (current rate is 18 % per annum). In other words, No late fee and penalty will be charged for GST returns till 30th june,2020 but interest will be charged @9% p.a after 15 days from due date.
8. Date for opting Composition scheme is also extended to June 30, 2020.
9. Payment date under Sabka Vishwas Scheme with no interest is extended to30th June, 2020.
10. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 is also extended to 30th June 2020.
11. Custom Clearance will operate 24×7 up to June 30.
12. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020 to 29th June 2020 is extended to 30th June 2020.
Related To Corporate Affairs
13. In respect of MCA-21 registry, suspension issued from April 1 onwards till 30th Sep 2020. There is no additional fee for late filling in respect of any document, return, statement etc.
14. Requirement of holding board meetings within prescribed interval has been relaxed for 60 days( two quarters) i.e., till 30th September.
15. For 2019-20, if independent directors have not been able to hold even a single meeting without the attendance of Non-independent directors and members of management, it will not be seen as a violation.
16. Applicability of Companies (Auditor’s Report) Order, 2020 is postponed to financial year 2020-2021.
17. Newly incorporated companies are given additional 6 months for declaration of commencement of business. Earlier in 6 months they have to declare now they have a time limit of 6 months +6 months i.e. 12 months.
18. Directors who do not comply with the minimum residency requirement i.e. 182 days at present will not be held as violation.
19. Deadline for investing 15 percent of debentures maturing during a particular year into specified instruments and deadline for creating a 20 percent deposit reserve has been extended to June 30.
20. Threshold for insolvency under Insolvency and Bankruptcy Code, 2019 is raised from Rs 1 lakh to Rs 1 crore to protect MSMEs. If the situation continues beyond April 30, 2020 then sections 7, 9 and 10 of IBC 2016 may get suspended for six months to prevent companies from being forced into insolvency.
Compliances Related to Aquaculture
21. Sanitary permits for import of shrimp brood stock and any other aquaculture inputs which were to expire between March 1 and April 15, are all extended by 3 months.
22. Delay up to 1 month in arrival of consignments will be accepted.
23. Rebooking of quarantine cubicles for cancelled consignments in aquatic quarantine facilities (AQF) with additional booking charges will be allowed.
24. Verification of documents and grant of NOC for quarantine will be relaxed from 7 days to 3 days.
Bank and Digital Transaction Related
25. Debit Card holders can withdraw cash from any ATM for free for next 3 months.
26. There shall not be any minimum balance requirement fee for three months.
27. Bank charges for digital trade transactions for all trade finance consumers to be reduced.
28. With respect to commerce activities, for procedural and eligibility point of view, extension of timeline will be given, but there shall be not an extension or modification for scheme guidelines.
29. Regarding monthly EMI’s the bank will give you details, FM Nirmala Sitharaman said.
30. Closely monitoring volatility in Stock Market in contact with Regulators three times a day, FM announced.
The author of above article is Punit Chaplot.
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