The union finance minister Nirmala Sitharaman has finally taken some relief measures on the basis of currently widespread coronavirus pandemic. The decisions are taken to provide relaxation to the various sectors as well as to the taxation industry. In her video conference with all the state finance ministers and panel, she has talked on all the sectors including Income Tax, GST, Customs & Central Excise, Corporate Affairs, Insolvency & Bankruptcy Code (IBC), Banking Sector and Commerce.

Announcement Related to Income Tax Act

• Financial Year 2018-19: the due date is 30.06.2020 to file Income Tax Returns
• Financial Year 2018-19: Delay in payments till 30.06.2020 will attract a 9% rate, Int rate reduced to 9% from 12%
• On TDS interest rate on delayed deposit on reduced to 9% which was 18% earlier, till 30.06.2020
• Dates of various other things such as notice, notification, intimation, approval order, statement filing, sanction order, filing appeals, applications, reports, any other compliance including investments, rollover of capital gains, wealth tax act, STT levy, Equalisation law, etc for which time limit expired on 20.03.2020 or thereafter be expanded to 30.06.2020.
• Aadhaar/ PAN linking date is extended to 30.06.2020
• VSV scheme extended to 30.06.2020 i.e. without extra 10% / 5% additional charge. and post 30.06.2020 additional payment will be applicable.

Announcements Regarding GST ACT

• For taxpayers having average annual turnover lower than Rs. 5 Crore, the applicable last date to file GSTR 3B which is due in March, April and May 2020 can now file the same by the last week of June 2020. Also, there is no interest, late fee, and penalty charged.
• And the other taxpayers can file returns due in March, April and May 2020 by the last week of June 2020 however there will be a reduced rate of interest @ 9 % per annum from 15 days after the due date (note that current interest rate is 18% per annum). Also, in this case, no late fee and penalty to be charged, if filed before or till 30th June 2020.
• Also one can opt for composition scheme which is extended till the last week of the June, 2020. Additionally, the due date for making payments for the quarter ending 31st March 2020 and filing of return for 2019-20 by the composition dealers is also extended till the final week of June, 2020.
• The date for opting composition scheme extended to 30.06.2020
• Vivad se Vishwas Bill Scheme extended till 30.06.2020. No penalty or interest levied on payments made under for assessees whose turnover is not more than 1.5 cr
• Customs clearance till 30.06.2020 to operate 24*7

MCA Matters Announcement

• MCA-21 registry – moratorium issued from 01.04.2020 to 30.09.2020. No additional late fees.
• For Board meetings – relaxation by a period of 60 days for next two quarters
• CARO 2020 will be made applicable from Financial Year 2020-21 and not this year.
• For the Financial Year 2019-20, if independent directors are not able to hold any meeting then it will not be considered as default.
• For new incorporated Companies, declaration of commencement of business can be furnished within an additional 6 months to the already existing 6 monthly limit
• Director of Resident Company who does not comply with minimum requirements of residing for 182 days – now relaxed
• The requirement of deposits reserves of 20% by the month of April now shifted to 30.06.2020.
• The requirements of 15 percent debentures maturing in specified instruments before 30.04.2020 extended till 30.06.2020

Insolvency and Bankruptcy Code

• A threshold of Rs. 1 lac is now raised to Rs. 1 cr to protect MSME effective immediately
• Only If the situation worsens, sections 7, 9 and 10 of IBC are expected to be suspended for 6 months.

Other Important Points

Department of Financial Services

• Debit cardholders who withdraw cash from any ATM (bank) from any bank – without any charge for 3 months
• No minimum balance requirements fee for three months
• Decrease bank charges for digital trade transactions for trade finance consumers