Economic Relief announced by Finance Minister of India on account of COVID-19

Date: 24th March, 2020

On 24th of March, 2020 Finance Minister of India, Mrs. Nirmala Sitharaman announced various reliefs after the situation getting serious due to COVID-19 (commonly known as ”Corona Virus”). Below are the point-wise Economic relief announced by Finance Minister of India

Nirmala_Sitharaman_Covid19_Announcement

Income Tax Compliance

  • For FY 2018-19, last date of filing Income Tax Return with penalty extended from 31st March, 2020 to 30th June, 2020.
  • For FY 2018-19, interest for delay in payment of Income Tax reduced from 12% to 9%.
  • Although the due dates of filing TDS Returns not extended but the delayed deposit will now attract interest penalty of 9% against the 18%.
  • Vivad se Vishwas Scheme extended till 30th June, 2020. Moreover additional charges of 10% will not be charged.

GST COMPLIANCE

  • Due dates for GST Return filing for the month of February, March & April – 2020 for both Regular as well as those opting for Composition Scheme extended till 30th June, 2020.
  • For Companies with turnover of less than ₹5 crores, no interest, penalty or late fees will be levied.
  • For Companies with turnover above ₹5 crores, interest will be charged at reduced rates of 9%.
  • Date of Opting Composition Scheme extended from 31st March, 2020 to 30th June, 2020.
  • Due Date for filing GST Annual Returns for FY 2018-19 extended till 30th June, 2020.
  • Payment date without any interest under Sabka Vishwas Scheme extended till 30th June, 2020.

Custom Compliance

  • Custom Clearance will be operational 24×7 during this Lockdown Period.
  • Due date for issue of notices for all laws linked to duty compliance extended till 30th June, 2020.

MCA Compliance

  • In respect of MCA-21 registry, moratorium being issued till 30th September, 2020. No additional fees for late filing.
  • For Board Meeting requirement under Companies Act, 2013, relaxation for next 2 quarters given.
  • For Newly incorporated companies, grace time of 6 months to file declaration for commencement of business.
  • For a director in any company, less than minimum residency of 182 days, shall now not be considered as a violation.

IBC Compliance

  • Government may suspend Section 7, 9 & 10 under Insolvency & Bankruptcy Code (IBC) for MSME for 6 months beyond 30th April, 2020 depending on situation.

BANK RELATED COMPLIANCE

  • Debit Card holders can withdraw cash from any Bank’s ATM without any additional charges for the next 3 months.
  • No Minimum balance requirement fees will be charged by Banks.
  • Bank charges reduced for digital trade transaction for all trade finance consumers.

OTHER COMPLIANCE

  • Due date for linking Aadhaar number with PAN extended till 30th June, 2020.

This Post will be updated time to time with announcements by honorable Finance Minister of India during this Pandemic COVID-19.

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