Finance Minister Nirmala Sitharaman is set speak shortly. This comes amid wide disruptions caused by the coronavirus outbreak, now at 492 total confirmed cases and seven deaths. Globally, most governments have announced fiscal measures and relief packages, including direct cash transfers, to its citizens and businessmen amid these testing times.
Assuring citizens that a financial relief plan for those affected by coronavirus disruptions is under way, the finance ministry has come up with relief around statutory and regulatory compliance as the financial year comes to an end, Sitharaman said.
The ministry will announce compliance and regulation in the following order:
Every attention is being given to the economy. The prime minister himself is closely watching the situation. A multi layered - including MPs, experts, industry participants etc. - task force is working and analysing all suggestions and developments. An economic package is being worked out. Sooner, we will come out with that.
Interest rate on delayed payments of income tax for financial year 2018-19 has been reduced to reduced to 9 percent from 12 percent.
Last date for Aadhaar-Pan linkage is June 30, 2020
Vivad se Vishawas scheme has also been extended to June 30,2020. There will not be any 10 percent additional charge from now till June 30.
All last dates and deadlines of document submission and compliance, has been moved to June 30. This includes the last date for filing income tax returns.
Other due date: Issue of notice intimation, notification, approval order, sanction order, filing of appeal, furnishing of returns, return statement, applications, reports, any other documents, any compliance by taxpayer, incl. investment in savings instruments, for rollover benefits under I-T Act, Wealth Tax Act, Prohibition of Benami Transactions Act, Black Money Act, STT Law, CTT Law, Equalisation Levy Law, Vivad Se Vishwas Law – where time limit was limit was expiring March 20 now extended to June 30.
Last date for filing March, April and May 2020 GST returns and compensation returns extended to June 30, 2020.
No late fee or penalty will be charged for companies with a turnover Rs 5 crore or lower that file GST late. Those with a turnover of more than Rs 5 crore, will pay a reduced interest rate of 9 percent.
As most people work from home during the lockdown period, companies and board that do not hold even one meeting with their independent directors will not be held under violation of rules, Sitharaman said.
Other highlights:
MCA 21 registry, moratorium issued from April 1 to Sep. 30, 2020
There shall not be any additional fee for late filing
Relaxing norms for holding board meeting to 60 days, this relaxation is till next two quarters
For newly incorporated companies, requirement for filing declaration for commencement of business is 6 months, that is being extended by another 6 months
A director of a company who hasn’t stayed in India for 182 days or more, will not be held under violation under the Companies Act.
Deadline to create a deposit reserve of 20 percent till April 30 has been moved to June 30.
Deadline to invest 15 percent debentures maturing in a year in specified instruments - a mandatory move - has been moved from April 30 to June 30.
In order to prevent triggering of IBC proceedings for medium and small enterprises, the default threshold limit is being increased to Rs 1 crore from the previous Rs 1 lakh, Sitharaman said.
The ministry may consider suspending Section 7 , Section 9 and Section 10 of the IBC, for a period of 6 months, if the situation continues in a similar manner.
For the next three months, debit card holders can withdraw cash from any other bank’s ATM without charge.
Complete waiver of minimum balance requirement of bank accounts. No penalty will be charged for breaching the minimum balance.
Bank charges are being reduced for digital transactions.
These changes and provisions have been made keeping in mind that citizens need to, and should, stay indoors unless it is absolutely necessary to venture out, the Finance Ministry said.
