COMPLIANCE RELIEFS IN THE WAKE OF COVID-19 PANDEMIC

To ease the compliance related to Taxation/MCA, our Hon’ble Finance Minister of India Smt. Nirmala Sitharaman has announced major relevant measures, on 24th March, 2020, to fight against the COVID-19 pandemic. Let’s begin with it.

COVID-19

The Invest India Business Immunity Platform is launched to help businesses and investors withstand COVID-19, by getting real-time updates on India’s active responses to Corona virus.

Finance Minister Nirmala Sitharaman allowed States and Union Territories to lift food grains from FCI on three-month credit basis, for distributing to poor and needy, amid the corona virus scare.

INCOME TAX

The last date for filing Income Tax Returns for the A.Y. 2019-20 extended to 30.06.2020

Penal Interest at a reduced rate of 9% p.a. will be levied on late payment of tax till 30.06.2020

Aadhar-PAN linking can now be done till 30.06.2020

Investments for Chapter-VIA deductions for AY 2020-21 can also be done till 30.06.2020

The “Vivad se Vishwas scheme” has been extended to 30.06.2020. (i.e No 10% additional charge from now till 30.06.2020, instead of the earlier 31.03.2020)

GST

The due date of GST returns of Feb, Mar, Apr 2020 is now extended to 30.06.2020

For Turnover < 5 Cr – No Late fee, penalty and interest to be levied

For Turnover > 5 Cr – No Late fee and penalty, whereas Interest at a reduced rate of 9% p.a.

Time limit for opting Composition Scheme for F.Y. 2020-21 now extended to 30.06.2020

CORPORATE AFFAIRS

CARO 2020 (recently notified) will be applicable from F.Y. 2020-21, instead of F.Y. 2019-20

No violation for independent directors, who did not held even one meeting in F.Y. 2019-20

Non-compliance of minimum residency in India for at least 182 days by at least one director, of every company under the Companies Act, 2013, shall not be treated as a violation.

BANKING INSTITUTIONS

Debit Card holders can now withdraw cash from any bank ATM for free, for the next three months.

Waiver of Minimum Account Balance (MAB) fees for next three months, till June, 2020.

Reduction of bank charges for digital trade transactions for all trade, finance and consumers.

OTHER INDIRECT TAXES

The legacy “Sabka Vishwas Scheme” deadline extended from 31.03.2020 to 30-06-2020 (i.e. No interest if dues are paid before 30.06.2020)

No interest will be charged on the disputed amount of Customs and Excise till 30.6.2020

All these measures and relaxations are to benefit the people and facilitate the smooth working of our economy, during the COVID-19 pandemic.

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AUTHOR : MUSKAN LALWANI (CLICK HERE TO VIEW PROFILE)