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.
- 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 clearance shall operate from June 30, 2020.
- 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.
- 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.