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Key highlights of Finance Minister Press Conference today

Key highlights of Finance Minister Press Conference today

In wake of complete lockdown due to fast spread of COVID-19 in India, our Finance Minister today held a Press Conference in New Delhi. Following are the key decisions taken in the aforesaid Press Release that have impact on Corporate India: Income Tax Changes:

  • Last date of filing ITR for FY 2018-19 has been extended to June 30, 2020. Interest rate on delayed payment of tax reduced from 12 per cent to 9 per cent;
  • Interest on delay in deposit of TDS has been reduced from 18 per cent to 9 per cent;
  • Linking of Aadhaar and PAN card to be extended to June 30, 2020;
  • “Vivas se Vishwas” scheme has been extended to June 30, 2020 with no additional tax payment until June 30, 2020;
  • Due date for making investment for availing deduction under section 80C and other investment related sections has been extended to June 30, 2020.

GST:

  • Last date for filing GST returns for March, April and May 20202 has been extended to June 30, 2020. The staggered dates for the same shall be provided in a separate press note;
  • No interest, late fee or penalty shall be levied till June 30, 2020 for companies having turnover of less than 5 crore. For others, interest will be charged at reduced rate of 9 per cent;
  • Due date for opting for Composition scheme has been extended to June 30, 2020;
  • ‘Sabka Sath Sabka Vishwas’ scheme has been extended to June 30, 2020.

Customs:

  • Customs clearance shall operate from June 30, 2020.

MCA:

  • Moratorium on late submission fee till September 30, 2020 for all filings with Ministry of Corporate Affairs (‘MCA’);
  • Mandatory requirement of holding Board meetings relaxed with grace period of 60 days for next two quarters;
  • CARO deferred to FY 2020-21 and shall not be applicable for FY 2019-20;
  • Six additional months to be provided to obtain Certificate of Commencement of business for new Companies;
  • Requirement for having a resident director has been temporarily relaxed.

Others:

  • Default limit under Insolvency & Bankruptcy Code increased from 1 lac to 1 crore;
  • No charge on ATM withdrawals from any bank ATM for next three months;
  • No minimum balance charge to be levied by banks for next three months;
  • Bank charges on digital transactions to be reduced.

 

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