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.