COVID-19: Relaxations under Financial laws
The outbreak of Novel Coronavirus (COVID-19) has turned the whole world upside down. Almost all the countries have been affected by this deadly virus.
COVID -19 has lead to havoc in economies. No sector has been left untouched by the adverse impacts of this pandemic virus. To prevent its spread, the governments all around the world have been asking people for social distancing.
In past few days, we have witnessed lockdown in almost every district of the country. The government recently has also announced a complete lockdown of the country.
All the offices, shops have been shut down to safeguard its employees. In a scenario like this work from home came to rescue many organizations.
The Government is taking all possible measures to control the spread of pandemic COVID-19. The number in India has crossed 500.
Keeping in mind the current scenario and to provide relaxations to the taxpayers , The Hon’ble Finance Minister has announced the extension of various statutory due dates and other relaxations for the taxpayers via a video press conference.
The relaxations have been provided under various legislations such as Income Tax Act, Goods and Service Tax Act, Custom and Excise Act, Companies Act etc.
Some Key Announcements are:-
INCOME TAX ACT:-
1. Extension of last date of filing return for AY 2019-20 (FY 2018-19) from March 31, 2020 to June 30, 2020. This covers the revised and belated returns.
2. The last date for linking Aadhar and PAN has been extended to June 30, 2020
3. Vivad se Vishwas Scheme can be availed till June 30, 2020 without payment of additional 10%
4. Dates for issue of notices, filing appeal furnishing returns applications where time limit is expiring between March 20, 2020 to June 29, 2020 has extended to June 30, 2020
5. Date for investment in saving instruments or investments for roll over benefit of capital gains under various acts including Income Tax Act, Black money Act where the time limit is expiring between March 20, 2020 to June 29, 2020 extended to June 30, 2020
6. Interest on delayed payments of advance tax , Self Assessment tax, TDS,TCS, equalization levy made between March 20, 2020 and June 30,2020 shall be charged at reduced rate of 9% for this period. Further no late fee/penalty shall be charged for delay relating to this period.
GOOD AND SERVICES TAX ACT:-
1. Due date for filing GSTR-3B has been extended to June 30, 2020 for March, April and May 2020.
2. Date for filing GST Annual returns of FY 18-19, which is due on March 31, 2020 is extended till last week of June, 2020
3. Date for opting composition scheme has been extended to June 30, 2020.
4. No late fees interest, penalty will be charged for companies with less than INR 5 Cr turnover on delayed filing of return
5. For Companies with turnover exceeding INR 5 Cr, the late fee & penalty has been waived off and the interest shall be charged reduced rate of 9%
6. Payment date under Sabka Vishwas Scheme has been extended to June 30, 2020. Further no interest shall be charged for this period.
CORPORATE AFFAIRS:-
1. No Additional fees shall be charged for late filing during moratorium period from April 1 to September 30,2020 in respect of any document, return, statement etc required to be filed before MCA -21 registry.
2. Board Meeting to be relaxed by a period of 60 days till next 2 quarters.
3. CARO 2020 will now be made effective from Year 2020-21
4. If no meeting is held with independent director in 2019-20 it is not to be considered a violation.
5. For newly incorporated companies, the commencement of business form can be filed with an additional time of 6 months
6. If a company’s director does not comply with minimum mandatory period of stay in India u/sec 149, it will not be treated as violation.
INSOLVENCY AND BANKRUPTCY CODE, 2016:-
1. The threshold of default under Section 4 of IBC has been raised to INR 1 crore. This will by and large prevent triggering of Insolvency proceedings under MSMEs.
FINANCIAL SERVICES:-
1. Relaxation for 3 months
- For Debit Cardholders to withdraw cash for free ATM from any other banks ATM.
- Waiver of Minimum balance fees
- Reduced bank Charges for digital trade transactions for all trade finance customer.
CUSTOMS:-
1. 24 X 7 Custom Clearance till end of June 30, 2020. This will facilitate the exports and imports related activities and reduce the effect of COVID -19 on Indian exports-Imports.
These measures announced by Hon’ble Finance Minister would surely help all the business and taxpayers in dealing with current COVID-19 lockdown and help people to remain in confinement for time being.