Finance Minister on Corona Outbreak:- Major Announcements

FM Nirmala Sitaraman Addressed the Media today 22-03-2020 and gave a briefing on relief on various statutory compliances which are summarised below:-

***Direct Taxes***

1.Income Tax Return:-

• The last date of filing of Income Tax Return (Belated Return) for the Financial Year 2018-19 is extended to 30th June 2020.
• Interest on delayed payment has been reduced from 12% to 9%.

2. Tax Deducted at Source (TDS)/ Advance Tax/ Self Assessment Tax:-

• The interest rate on delayed payments of advanced tax, self-assessment tax,  regular tax, TDS, TCS, equalization levy,  STT, CTT  made between 20th March 2020  and  30th June 2020, the reduced interest rate at 9% instead of 12 %/18 % per annum (i.e.0.75%  per month instead of 1/1.5 percent per month) will be charged for this period.  
• No late fee/penalty shall be charged for delay relating to this period.

3. AADHAR-PAN Linking:-

• The Aadhar-PAN linking date is extended to 30th June 2020 from 31st March.

4.Vivad se Vishwas Scheme:-

• Due date extended to 30th June 2020.
• Further, no additional 10% till 30th June 2020.

5. Other due dates under the Income Tax Act:-

• Wherever the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020, in following cases:-
• The due date for the Issue of Notice.
• Issue of intimation/notices.
• Filling of Appeal.
• The time limit for completion of proceedings.
• Date of investment in any saving instrument for rollover the benefit of Capital Gain.

***Indirect Taxes***

1. GSTR-3B:-

• The last date for filing GSTR-3B for the month of March, April and May 2020 (i.e returns for the supplies made in the months of February, March & April, 2020)extended to 30th June 2020.
• This extension is only for those having Aggregate annual turnover less than Rs.5Crore.

2.Interest on delayed payment:-

• The interest rate at 9% (instead of 18%) for any delayed payment made between 20th March 2020 and 30th June 2020.
• No late fee and penalty will be charged if complied before 30th June 2020.

3.Composition Scheme:-

• The last of making payment for the quarter ending 31st March 2020 is extended to 30th June.
• Filling of return by composition dealers is extended to 30th June.
• The last date for opting for composition scheme for 2020-21 is extended to 30th June 2020.

4.Sabka Vishwas Scheme:-

• The payment date under Sabka Vishwas Scheme is extended to 30th June 2020.
• No interest for this period shall be charged if paid by 30th June 2020.

5.Other Due-Date under GST:-

• The due date for issue of notice, notification, approval order, sanction order, filing of the appeal, furnishing of return, statements, applications, reports, any other documents, the time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.

6. Customs Act:-

• 24X7 Custom clearance till the end of 30th June 2020. 
• The due date for issue of notice, notification, approval order, sanction order, filing of the appeal, furnishing applications, reports, any other documents, etc., the time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020. 

***Banking***

• Debit Cardholders to withdraw cash for free from any other bank's ATM for 3 Months.
• Waiver of minimum balance fee.
• Reduced bank charges for digital trade transactions for all trade finance consumers.

***Corporate Affairs***

1.Board Meeting:-

• The mandatory requirement of holding meetings of the Board of the companies within the prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till the next two quarters i.e., till 30th September.

2. Applicability of CARO, 2020:-

• Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier.
• This will significantly ease the burden on companies & their auditors for the year 2019-20.

3.Independent Directors:-

• As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of non-independent directors and members of management.
• For the year 2019-20, if the IDs of a company have not been able to hold even one meeting, the same shall not be viewed as a violation.

4. Creation of Deposit Reserve:-

• The requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.

5. Maturing of Debenture:-

• The requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020,  maybe done so before 30th June 2020. 

6. Declaration of Commencement:-

• Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed.

7. Resident Director:-

• 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.

8.Insolvency Proceedings:-

• The threshold of default under section 4 of IBC 2016 is raised to Rs.1Crore from Rs.1Lac.
• Further, if the current situation continues beyond 30th April 2020, the Government may consider suspending sections 7, 9 and 10 of IBC 2016 for a period of 6 months.

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[Disclaimer:-This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.]