Income Tax, GST, MCA, Digital Transactions reliefs announced by Nirmala Sitharaman today

 

 

 

Nirmala Sithraman's address -24.03.2020

 

 

Every attention is being given to the economy. The prime minister himself is closely watching the situation. A multi layered – including MPs, experts, industry participants etc. – task force is working and analysing all suggestions and developments. An economic package is being worked out. Sooner, we will come out with that.

-FM Nirmala Sitharaman, today at the video conference Press Address – 24th March 2020

Here, we have summarized the major announcements made by the FM today at the video con Press Meet.

Key Announcements – GST:

 

1. The last date for March, April, May 2020 GST returns and Composition returns extended to June 30th, 2020. Staggering dates to apply. More details are to be published in the note.

2.Composition Returns extended till 30 June 2020. 

3.No Interest, late fee or penalty will be charged for Company with turnover of upto Rs 5 cr. For businesses having turnover of above Rs. 5 cr, reduced interest @9% will get attracted.

 

Key Announcements – Income Tax:

 

1. Last date for filing FY 2018-19 Income Tax Returns extended to 30th June, 2020.

2.Delay deposit of TDS will attract interest of 9% insted of 18% will be charged till June 2020

3.Various date for Notice etc will be extended 30 June, like approval, appeal, statments, reports, order, investment in saving instrument, capital gains benefit, black momey, STT, Equalisation Levy etc

4. Due date for issue of notice for all laws linked to duty compliance extended till June 30

5. Due date for Aadhar – PAN linkage extended to 30th June 2020

6. Vivad se Vishwas Scheme time line extended to 30th June 2020 and no extra 10% tax payment required

 

Know more about our GST, TDS and other compliance services: Taxmantra Global trusted by 40K+ businesses worldwide

Key Announcements – MCA:

 

1. Mandatory requirement of holding board meetings is being relaxed by a period of 60 days, this relaxation is for the next two quarters.

2.Mandatory Independent Directors’ meeting requirement under company law relaxed for FY19 – if meeting not held yet.

3. Newly incorporated businesses have 6 months extra for commencement of business filing.

4. CARO 2020 will not be applicable for 2019-20 and will be applicable from 2020-2021

5. MCA 21 registry, moratorium issued from April 1 to Sep. 30, 2020

6. No additional fee for late filing

7. Deadline to create a deposit reserve of 20 percent till April 30 has been moved to June 30.

8. Deadline to invest 15% debentures maturing in a year in specified instruments has been extended to June 30. 

 

Key Announcements – Customs & Excise:

 

1. Sabka Vishwas dispute settlement scheme – last date for payment is now June 30.

2.  Customs clearance now an essential service, till June 30th, 2020 it will be working 24/7.

 

Key Announcements – Insolvency & Bankruptcy Code:

1. The default threshold limit is being increased to Rs 1 crore from the previous Rs 1 lakh, Sitharaman said, in order to prevent the triggering of IBC proceedings for SMEs.

2. The Ministry may consider suspending Section 7,8,9,10 of the IBC, for a period of 10 months, if situation worsens or continues in a similar manner.

 

Key Announcements – Fisheries:

 

1. All sanitary export permits which were to expire between April 1 and April 15, are being extended by three more months

2. The delay of arrival of assignments up to one month, will be overlooked.

3.Rebooking of quarantined cubicles in Chennai’s aquarium, for cancelled assignments will not lead to additional booking charges

Key Announcements – Banking:

 

1. Debit card holders who withdraw cash from any bank ATM can do it free of charge for next 3 months.

2. Minimum  balance requirement waived off. No penalty to attract.

3. Bank charges are being reduced for digital transactions.

 

Press Note – FM Nirmala Sitharaman

 

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