The Corona Virus pandemic has caught the world in a tight grip impacting not just human life, but toppling the world economy as well – all in just a matter of a few weeks. In order to provide economic and mental relief to the country as the pandemic spreads, Union Finance Minister Nirmala Sitharaman on Tuesday (Jan 24, 2020) announced a slew of measures.
Finance Ministry has come up with relief around statutory and regulatory compliance as the financial year comes to an end and areas being touched upon are as follows,
- Income tax
- Customs and Central Excise
- Ministry of Corporate Affairs
- Insolvency and Bankruptcy Code
- Bank-related compliance
i) For Financial year 2018-19, last date for returns extended to June 30, 2020. Delayed payments made till June 30, interest rate reduced to 9% from 12%.
ii) For delayed deposit of TDS, interest has been reduced to 9 % from 18%
iii) Aadhaar-pan linking extended to June 30,2020 from March 31,2020
iv) Vivaad se Vishwaas scheme extended to June 30. And no additional payment of 10% to be paid
v) All compliances under Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, Vivaad se Vishwaas, have been extended to June 30, 2020
i) All GST returns for March, April, May 2020 and composition returns extended to June 30, 2020
ii) For companies less than 5 cr, no late fee and penalty to be charged. For above Rs 5 cr, only interest at the rate of 9%. Late fees and penalty waived.
i) Sabka Vishwaas scheme for indirect taxes having last date till March 31 has been extended to June 30,2020. No interest to be levied.
ii) Customs clearance till June 30 to work 24×7.
iii) Due date to complete pending payments of central and excise duties have been extended to June 30, 2020, without any interest or late fee charge.
i) In respect of the MCA21 registry, there is a moratorium being issued from April 1st 2020 till Sep 30th 2020. No additional fees for late filing.
ii) There is a mandatory requirement for holding Board meeting. Relaxing norms for holding board meeting to 60 days, this relaxation is till next two quarters
iii) For newly incorporated cos, additional time of six more months is being given for filing declaration of commencement of business
iv) If there is a company director who does not comply with minimum residency requirement of 182 days, this was treated as a violation. It shall not be treated as one
v) Deadline to create a deposit reserve of 20 percent till April 30 has been moved to June 30 2020.
vi) Deadline to invest 15% debentures maturing in a year in specified instruments – a mandatory move – has been moved from April 30 to June 30, 2020.
Insolvency and Bankruptcy Code
i) 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.
ii) The ministry may consider suspending Section 7, Section 9 and Section 10 of the IBC, for a period of 10 months, if the situation continues in a similar manner.
i) All sanitary export permits which were to expire between April 1 and April 15, are being extended by three more months.
ii) The delay of arrival of assignments up to one month, will be overlooked.
iii) Re-booking of quarantined cubicles in Chennai’s aquarium, for cancelled assignments will not lead to additional booking charges.
i) Debit card holders who withdraw cash from any other bank’s ATM can do it free of any charge for the next three months.
ii) Minimum balance requirement has been done away with.
iii) Reduced digital charges for trade transactions.
An economic package is being worked out. A multi layered – including MPs, experts, industry participants etc. – task force is working and analyzing all suggestions and developments.