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In a laudable show of responsible governance, Indian Finance Minister, Nirmala Sitharaman, initiated a series of relief measures to make cash available to homes and businesses suffering from losses owing to the Covid 19 pandemic. Relief includes payment extensions for income taxes, GST, and halting of tax proceedings. These measures are crucial not only in providing expendable cash in the hands of consumers but also to pare losses for businesses whose transactions and cash flows have been obstructed by the ongoing Coronavirus blockade.

 

Income Tax

 

• Extend last date for income tax returns for FY 2018‐19 (AY 2019‐20) from currently March 31, 2020 to June 30, 2020.
• Aadhar‐PAN linking date to be extended from March 31, 2020 to June 30, 2020
• No additional 10% amount needs to be paid under the Vivad se Vishwas Scheme if payment is made by June 30, 2020.
• Other matters for which due date extended to June 30, 2020
  • Issue of notice, intimation, notification, approval order, sanction order.
  • Filing of appeal.
  • Filing of returns, statements, applications, reports, any other document for completion of proceedings.
  • Compliance by taxpayer – Investment in saving instruments such as Section 80C, 80D, 80G etc.
  • Investment for roll‐over benefit of Capital Gains, i.e. Investment made under series of Section 54.
  • Furnishing of documents under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Act, Black Money Act, Securities Transaction Tax Law (STT), Commodity Transaction Tax Law (CTT), Equalisation Levy, Vivad se Vishwas Law.

Note: for the above point 1(d), where the time limit is expiring between March 20, 2020 and June 29, 2020 has been extended to June 30, 2020.

 

• Reduced tax rate of 9% p.a. shall be used instead of 12%/18% for delayed payments of advance tax, self‐assessment tax, regular tax, TDS, TCS, Equalisation Levy, STT, CTT made between March 20, 2020 and June 30, 2020. Also, no late fee/penalty shall be charged for delay relating to this period.

 

Goods and Services Tax / Indirect Tax

 

• Where the aggregate turnover is less than Rs. 5 Crore, taxpayers can file their GSTR‐3B for the month of March, April and May 2020 by the last week of June 2020. No interest, late fee, penalty to be charged.
• For other businesses, i.e. having aggregate turnover of more than Rs. 5 Crore may also file their returns for the month of March, April and May 2020 by the last week of June 2020 but it would attract an interest of 9% p.a. from 15 days after the due date of the respective month against the rate of 18% p.a. which is currently prevailing in the law. No interest, late fee, penalty to be charged if complied by last week of June 2020.
• Composition scheme can now be opt by taxpayers by last week of June 30, 2020. Also, timeline for filing of return by Composition dealers for quarter ended March 31, 2020 is also extended to last week of June 2020.
• Date for filing GST annual returns of FY 18‐19, i.e. GSTR‐9 which is due on March 31, 2020 is extended till the last week of June 2020.
• Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between March 20, 2020 to 29th June 2020 shall be extended to June 30, 2020.
• Payment date under Sabka Vishwas (Legacy Dispute Resolution) Scheme shall be extended to June 30, 2020. No interest for this period shall be charged if paid by June 30, 2020.

 

Customs

 

• Custom clearance will operate 24×7 till the end of June 30, 2020.
• Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between March 20, 2020 to June 29, 2020 shall be extended to June 30, 2020.

 

Financial Services

 

• No charge shall be levied for 3 months for withdrawing cash from any other bank’s ATM.
• Waiver of charge for not maintaining minimum balance in bank accounts.
• Reduced bank charges for digital trade transactions for all trade finance consumers.

 

Ministry of Corporate Affairs (MCA)

 

• No additional fees shall be charged for late filing during a moratorium period from April 01 to September 30, 2020, in respect of any document, return, statement etc., required to be filed in the MCA‐21 Registry, irrespective of its due date.
• The mandatory requirement of holding Board Meetings of the companies within 120 days of previous Board Meeting shall be extended by a period of 60 days till next two quarters i.e., till September 30, 2020.
• Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020‐ 2021 instead of from 2019‐2020 notified earlier.
• 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 Independent Directors of a company have not been able to hold even one meeting, the same shall not be viewed as a violation.
• Requirement to create a deposit reserve of 20% of deposits maturing during the financial year 2020‐21 before April 30 2020 shall be allowed to be complied with till June 30 2020.
• Requirement to invest 15% of debentures maturing during a particular year in specified instruments before April 30, 2020, may be done so before June 30, 2020.
• 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.
• 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
• Increase in the threshold of default under section 4 of the Insolvency and Bankruptcy Code, 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). The Government may consider suspending section 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 for a period of 6 months if the COVID‐19 outbreak situation continues beyond April 30, 2020.

 

 

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