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News You Can Use: Govt Extends Crucial Deadlines For Financial Tasks, Eases Rules To Tackle Coronavirus Impact

Team BankBazaar
Image source: Dragana_Gordic/Freepik

While announcing there is no financial emergency in the country in the wake of Covid-19 crisis, the government came out with a number of steps to boost economic sentiment and ease the various burdens on the industry as well as the common man. The government also said that the economic task force is working on a big financial package, and it will be announced soon.

Take a look at key steps announced by the government:

TAXATION

  • Income tax returns filing date for a belated or delayed filing for financial year has been extended to June 30. The interest that is levied for a delayed tax payment has been reduced to 9% from 12%.
  • The deadline for linking your Aadhaar with PAN has been extended to June 30 from March 31.
  • The interest rate for delayed deposit of TDS has been slashed to 9% from 18%.
  • The Income Tax Act, Wealth Tax Act, Benami Transaction Act, Vivaad se Vishwaas and Black Money Act has been extended to June 30, 2020. You will also not be required to make additional payment of 10% for Vivaad se Vishwaas scheme.

BANKING

  • The government has directed the banks to do away with minimum balance requirement for savings account. This will allow customers and businesses to use more of their liquidity during this distressing time without worrying about penalties.
  • All debit card holders can withdraw cash from any bank ATM free of any charges for the next three months.
  • The digital trade transaction charges has been reduced.

CUSTOM AND CENTRAL TAXES

  • Sabka Vishwas scheme deadline date extended to June 2020. No interest for payment made up to June 2020.
  • Custom clearance up to June 30, 2020 will work as normal 24X7.

GST

  • The government has extended the last date for the filing of March, April and May 2020 GST returns to June 30, 2020. The compensation laws for GST have also been extended to end of June based on original due date of filing.
  • The government said those companies that have less than Rs. 5 crore turnover will not be required to pay late filing fee, interest or penalty. For companies that have turnover over Rs. 5 crores, interest of 9% will be applied.

INSOLVENCY AND BANKRUPTCY CODE

  • The threshold for default is Rs. 1 lakh currently. The government raised it to Rs. 1 crore to prevent triggering of IBC against MSMEs.
  • If the current situation stretches beyond April, then Sec 7,9, 10 of the IBC will be suspended for a period of six months.

For Companies

  • For MCA 21 registry, the government issued a moratorium from April 1 to September 30, 2020 without any addition fee for late filing.
  • The company board meetings have been relaxed for a period of 60 days for the next two quarters.
  • The new incorporate companies will get additional time of six months for filing of commencement of business.
  • Any director who does not comply with minimum residency requirement, shall not be treated as a violation

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