Key Announcements By Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman today announced several relaxations in tax compliance rules for individuals and firms and also raised the threshold of triggering insolvency cases to Rs 1 crore from the current Rs 1 lakh.

Related to Income Tax

• FY 2018-2019 | AY 2019-2020
  • ITR last date extended to 30th June 2020
  • Tax payment made till 30th June- Interest reduced from 12% to 9%
  • Delayed deposit of TDS till 3oth June- Reduced interest 9%
• Extension of dates for various compliances
  • The due date for all notices/orders/appeals/applications/reports/any other document/any compliance by taxpayers up-to 30th June 2020
  • All investments/saving instruments for rebates can be made by 30th June 2020.
  • Adhaar-PAN linking date extended to 30th June 2020
• Vivad Se Vishwas Scheme extended up-to 30th June 2020, No additional charge of 10% up-to 30th June 2020, the earlier disputed tax has to be deposit by 31st March without additional charge of 10%.

Related to Goods and Services Tax (GST)

• March, April and May 2020 month GST returns & composition return filing date extended up-to 30th June 2020.
• Companies with less than 5 Crore Turnover no interest, late fees or penalty.
• Other companies more than 5 Crore turnover, no Late fee and penalty, only interest at a reduced rate of 9%
• The date for opting for the composition scheme extended to 30th June 2020.

Related to Custom/Central Excise

• Sabka Vishwas Scheme (Indirect Taxes) extended from 31st March 2020 to 30th June 2020, no interest will be levied at all.
• Custom clearance till 30th June 2020 will be 24*7

Announcements by the Ministry of Corporate Affairs (MCA)

• From 1st April till 30th September 2020, no additional fees for late filings.
• Holding board meetings period of 60 days relaxation till the next 2 quarters.
• Applicability of Companies Auditors Report Order (CARO) 2020 will be from FY 2020-2021 instead of 2019-2020
• 2019-2020, if no meeting held with Independent director, no violation.
• For newly incorporated companies, the commencement of business form can be filed with an additional time of 6 months.

Related to Insolvency and Bankruptcy Code, 2016

• The threshold of default raised from Rs. 1 Lacs to 1 crore.
• If the situation of COVID-90 continues like this, after 30th April 2020, may suspend section 6 months sections 7, 9 and 10 of IBC for the next 6 months.

Related to Bank Accounts

• Debit cardholders can withdraw cash from any bank ATM- No charge up-to next 3 months
• No minimum balance requirement fees for bank accounts
• Bank charges reduced for digitally transactions related to all trade finance.

The Government will also announce a fiscal package to help the economy face the impact of the coronavirus.