The Finance Minister in her press meeting on 24 Mar 2020 announced several relaxations to help businesses combat COVID’s brutal attack. Here are the key announcements
Income Tax
- Interest rate on delayed payment of advance tax, self-assessment tax, TDS, TCS and other taxes made between 20-Mar and 30-Jun shall be subject to reduced rate of interest of 9% (instead of 12% / 18%). No late fee or penalty shall be levied.
- Benefit of Vivad se Vishwas scheme extended to 30-Jun without 10% additional payment.
- Due dates for the following compliances extended to 30-Jun
- Aadhar – PAN linking,
- Filing income tax returns for the year 2018-19 (i.e. belated returns that could have been filed up to 31-Mar)
GST & Customs
- Due date for filing GSTR-3B for Mar’20, Apr’20 and May’20 extended to 30-Jun for suppliers with turnover less than Rs. 5 Crores.
- Interest rate on delayed payment of GST made between 20-Mar and 30-Jun shall be subject to reduced rate of interest of 9% (instead of 18%). No late fee or penalty shall be levied.
- Customs clearance shall be permitted 24X7 till 30-Jun
- Due dates for the following compliances extended to 30-Jun
- Opting for composition scheme,
- Filing GSTR-9 and GSTR-9C, and
- Payment date under Sabka Vishwas Scheme (no interest shall be charged if payment is made before 30-Jun)
Corporate Affairs
- No additional fees shall be charged for late filing during the period from 1-April to 30-September, in respect of any document, return, statement required to be filed on MCA portal,
- Date for convening Board meeting extended by 60 days for the next two quarters,
- Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021
- Reserves to be created for the maturity of debentures (15%) and deposits (20%) shall be allowed upto 30-Jun
- New companies shall be allowed 6 months more to file Commencement of Business
- Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation.
- Threshold of default under the Insolvency Bankruptcy Code 2016 has been raised to Rs 1 crore (from Rs. 1 lakh)
Financial services
- Debit card holders can withdraw money from any bank without any charges for 3 months,
- No fee shall be levied for failure to maintain minimum balance,
- Reduced bank charges for digital trade transactions for all trade finance consumers
In case of any questions, please do not hesitate to reach out to us on pavan@bclindia.in or write to us on bclindia.in/contact/. We would be glad to be of your assistance.
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