Union Finance Minister Nirmala Sitharaman today announced various statutory and regulatory compliance relief measures amid a complete shutdown almost all over the country to control the spread of the highly contagious coronavirus or Covid-19 infection.
Below are the key announcements:
A) Financial Services
– Debit card holders who withdraw cash from any bank ATM can do it free of any charge for next three months. The measure has been taken to ease the burden on customers who need urgent cash and avoid overcrowding of bank branches.
– There will be no charges on not keeping the minimum balance requirement. Country’s largest lender State Bank of India had already waived the requirement of holding a minimum balance in savings account.
– Reduced digital charges for trade transactions.
These changes and provisions have been made keeping in mind that citizens need to, and should, stay indoors unless it is absolutely necessary to venture out, the Finance Ministry said.
B) Tax Measures
– For Financial year 2018-19, last date for returns extended to June 30, 2020
– Interest Rate on delayed payment reduced from 12% to 9%
– For delayed deposit of TDS, interest has been reduced from 18% to 9 %
– Vivaad se Vishwaas scheme extended to June 30. And no additional payment of 10% to be paid
– All compliances under Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, Vivaad se Vishwaas, have been extended to June 30, 2020
C) Due date extended to 30.06.2020
– Aadhar Card- Pan Card Linking
– Sanction/Appeal/ Certificate/ Order/ Application etc including Investment in Saving Scheme, Capital Gain, Prohibition of Benami, Benami Law where due dates between 20th March to 29th June
D) GST
– Last date of March, April, May and composition returns of GST Return filing extended to 30.06.2020
– Companies less than 5 Crore Turnover: No late fees, interest, penalty
– Companies more than 5 Crore Turnover: No late fees, penalty; Interest leviable at 9%
E) Customs and Central Excise
– Sabka Vishwaas scheme for indirect taxes having last date till March 31 has been extended to June 30,2020. No interest to be levied.
– Customs Clearance will work 24*7 upto 30.06.2020
F) MCA
– In respect of the MCA21 registry, there is a moratorium being issued from April 1 till Sep 30. No additional fees for late filing.
– Holding Board meeting relaxed for 60 days for next 2 Quarters
– CARO Applicability postponed to FY 2020-21
– No violation even if Independent Director held no meeting
– For newly incorporated companies, additional time of six more months is being given for filing declaration of commencement of business
– If there is a company director who does not comply with minimum residency requirement of 182 days, this was treated as a violation. It shall not be treated as one.
– Deadline to invest 15 percent debentures maturing in a year in specified instruments – a mandatory move – has been moved from April 30 to June 30.
G) Insolvency and Bankruptcy Code
– Threshold of default is Rs one lakh as of now. From Rs one lakh it is being raised to Rs one crore to prevent triggering of insolvency proceedings for SMEs.
– If it continues like this beyond April, then sec 7, 9, 10 of the IBC will be suspended for a period of six months.
Various filing extensions and relief in compliance as listed above is essential for businesses to tide over these difficult circumstances. Businesses must also use this time to explore ways to become more and more tech focused so teams can work digitally and remotely.