COVID19 – Relief measures announced by FM.

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.


 

[pdf-embedder url=”https://bclindia.in/wp-content/uploads/2020/03/tax-compliance-package-ver-1.9.pdf” title=”tax compliance package ver 1.9″]

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