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. The last date for filing a belated income tax return (ITR) for the FY 2018-19 has been extended from March 31 to June 30, 2020.
Highlights:
- Nirmala Sitharaman has also announced that minimum account balance charges and ATM withdrawal charges will be waived off for 3 months
- Modi government is working on an economic package for industries affected by the coronavirus
The deadline for filing returns of goods and services tax (GST) for March, April, and May this year has also been extended till June 30. The government has also extended the last date for linking the PAN card with Aadhaar from March 31 to June 30.
Bank account holders do not need to worry about maintaining a minimum monthly balance as non-maintenance charges will be waived off for three months. ATM withdrawals from any bank ATMs will also be free for debit cardholders for the next 3 months.
Here are the key announcements by FM Nirmala Sitharaman:
Financial Services:
*Debit cardholders who withdraw cash from any bank ATM can do it free of any charge for the 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. The country’s largest lender State Bank of India had already waived the requirement of holding a minimum balance in the savings account.
*Reduced digital charges for trade transactions.
Tax measures
*For the Financial year 2018-19, the last date for returns extended to June 30, 2020. For delayed payments made till June 30, the interest rate reduced to 9% from 12%.
*For a delayed deposit of TDS, interest has been reduced to 9 % from 18%
*Aadhaar-pan linking extended to June 30 from March 31
*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
For GST
*All GST returns for March, April, May, and composition returns extended to June 30, 2020
*For companies less than 5 cr no late fee and penalty to be charged. For above Rs 5 cr, the only int at the rate of 9%
For Customs
*Sabka Vishwaas scheme for indirect taxes having the last date till March 31 has been extended to June 30, 2020. No interest to be levied.
*Customs clearance till June 30 to work 24×7.
For Companies
*In respect of the MCA21 registry, there is a moratorium being issued from April 1 till Sep 30 no additional fees for late filing.
*There is a mandatory requirement for holding a Board meeting. We are relaxing it for 60 days for the next two quarters.
*For newly incorporated cos, 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 the minimum residency requirement of 182 days, this was treated as a violation. It shall not be treated as one.
For 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.
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