Union Finance Minister Nirmala Sitharaman today addressing a press conference on various legislative and regulatory enforcement issues in the midst of a complete shutdown to monitor the spread of highly contagious coronavirus or Covid-19 infection virtually across the world. The Ministry of Finance is already working on an economic package to reduce coronavirus ' effects on the Indian economy. Prime Minister Narendra Modi also declared the formation of a task force, led by Sitharaman, to explore steps to reduce the economic distress caused by the COVID-19 pandemic.

Measures to limit economic hardship caused by the COVID-19 pandemic.

The Finance Minister said the last date for filing income tax returns for the 2018-19 fiscal year is extended to June 30 and also declared June 30 as the new date for Aadhaar's compulsory filing with Permanent Account Number (PAN). "Debit cardholders withdrawing cash from any ATM system will now be able to do so for a period of three months free of charge.

HIGHLIGHTS:

A. (INCOME TAX)

➲ Last date of filing Income Tax Return FY 2018-19 increased to 30.06.2020

Individuals or body corporate can submit their income tax return for the year of the Financial year 2018-19 till 30/06/2020

➲ Delayed deposits of TDS, only reduced interest rate of 9% will be charged on delayed deposits till June 2020. No extension of the deadline.

The delayed interest on TDS will be charged at the rate of 9% till June 2020.

➲ Aadhaar-PAN linking deadline extended to 30th June

Now the due date for linking Aadhar and PAN is extended to 30th June 2020

➲ For delayed payments, interest rates have been cut.

➲ 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 - All extended to 30th June.

 

B. GST (GOODS & SERVICES TAX)

➲ Last date of March, April and May of GST Return filing extended to 30.06.2020

GST return filing for the March, April and May extended to 30/06/2020

➲ Companies less than 5 Crore : No late fees, interest, penalty

Companies having turnover less than 5 crore will not be charged any late feed, interest, and penalty on GST return’s filing

➲ Companies more than 5 Crore : No late fees, penalty; Interest leviable at 9%

Companies having turnover more than 5 crore will charged with 9% interest on late filing of return but penalty and late fees will not be charged.

➲ Composition Scheme Option can now be availed upto 30.06.2020

➲ Vivad se Vishwas tax dispute resolution scheme extended by 3 months to June 30. Those availing the scheme by the extended deadline will not have to pay 10 per cent interest on the principal amount.

C. Customs & Central Excise

  • ➲  Sabka Vishwas extended to 30.06.2020
  • ➲  Customs Clearance will work 24*7 upto 30.06.2020

 

D. MINISTRY OF CORPORATE AFFAIRS

➲ Board meeting holding relaxed for 60 days for next 2 Quarters

Companies get relaxation in holding board meeting for next two quater.

➲ CARO Applicability postponed to FY 2020-21

➲ No violation even if Independent Director held no meeting

If Ids don’t attend the meeting then no violation of rule will be there.

➲ Newly incorporated company - Commencement of business certificate : additional 6 months

Commencement of Business declaration can be filed with extended 6 months time i.e. 6 + 6 months = 12 months time

➲ Resident Director requirement not violation

For a director in any company, less than minimum residency of 182 days, shall now not be treated as a violation

➲ Deposits Repayment Reserve requirement and 15% Debenture repayment investment to be invested : till 30.4.2020 extended to 30.6.2020

20% deposit reserve to be created for redemption of deposit by April 30, 2020 is now shifted to June 2020.

15% Debenture reserve also shifted from April 30, 2020 to June 30, 2020.

➲ MCA21 Registry - Moratorium issued from April 1, 2020 to Sep 30, 2020 ie. No late fee at all.

 

E. INSOLVENCY AND BANKRUPTCY CODE

➲  Default threshold increased from Rs. 1 lakh to Rs. 1 crore

The existing threshold of ₹1 lakh hiked to ₹1 crore. This is being done to protect MSMEs

➲  Section 7, 9, 10 may be suspended for 6 months

- Initiation of corporate insolvency resolution process by financial creditors (Section 7 of IBC)

- Application for initiation of corporate insolvency resolution process by operational creditor (Section 8 of IBC)

- Initiation of corporate insolvency resolution process by corporate applicant. (Section 10 of IBC)

 

 

F. BANKING INDUSTRY

​➲   Minimum Balance Waiver is for the next 3 months at this moment

➲   Bank charges reduced for digital trade transaction for all trade finance consumers in order to reduce customer visit to bank ministry has taken a step to reduce the digital transaction charges

➲  Debit cardholders may withdraw cash from any ATMs absolutely free of charges for next 3 months