The Finance Minister revealed that the federal government is presently engaged on an financial package deal, which shall be introduced quickly. The financial package deal is aimed to cope with COVID-19 disaster and preserve the financial system afloat, amidst full lockdown introduced by 32 states and union territories to fight coronavirus outbreak.
The Minister majorly spoke on statutory and regulatory compliance issues associated to earnings tax, GST, insolvency and chapter code, fisheries, financial institution associated compliances and commerce associated bulletins.
FM press convention: Key Highlights
Income tax associated issues
For fiscal 12 months 18-19,
- The final date for submitting earnings tax has been prolonged from March 31 to June 30, 2020.
- The rate of interest for delayed earnings tax funds has been decreased from 12 to 9 %.
- No extension however on delayed deposit of TDS, solely decreased curiosity of 9 % shall be charged on the delayed deposit until June 30, 2020. The present price of curiosity is 18 %.
Various different due dates and see submitting have all been prolonged to June 30.
The Aadhaar and pan linking deadline has additionally been prolonged to June 30 from March 31.
Vivaad se Vishwas scheme has additionally been prolonged to June 30 and from now there isn’t a further cost until June 30. Earlier there was no further cost until March 31.
The due dates for challenge of discover, intimation, submitting of attraction, submission of earnings tax return and any different doc or compliance matter by the tax payer together with saving devices or capital good points below earnings tax act, wealth tax act, benami property act, STT regulation, CTT regulation, Vivaad se Vishwas regulation, the place the time restrict was expiring in March shall all be prolonged to June 30, 2020.
The final date for submitting of March, April and May GST returns has been prolonged to June 30.
For corporations which have lower than 5 crore turnover, no curiosity, late charge or penalty shall be charged.
For larger corporations, no late charge or penalty for first 15 days however curiosity shall be charged at decreased price of 9 %.
The final date for submitting return below the composition scheme has additionally been prolonged to June 30.
Central customs and central excise
The final date of Sabka Vishwas scheme (for settling disputes in oblique tax regime) has additionally been prolonged from March 30 to June 30, 2020. No curiosity to be levied if individuals pay as much as June 30, 2020.
During this era, though there may be lockdown, customs clearance will function 27×7 until June 30.
Company associated issues below Ministry of company affairs
In respect of MCA 21 registry, there’s a moratorium issued from April 1 until September 30. There shall not be further charges for late submitting.
In case of holding of the necessary board conferences, the finance ministry is enjoyable it by a interval of 60 days until the following two quarters.
The applicability of the businesses auditors report order 2020, which was presupposed to have been introduced into power in 2019-20, shall now be made relevant from fiscal 12 months 2020-21.
For 2019-20, if the unbiased administrators of the corporate haven’t been capable of maintain even one assembly, the identical shall not be seen as a violation.
For newly integrated corporations, there’s a requirement to file declaration for graduation of enterprise inside six months of incorporation. The time has been prolonged by 6 extra months.
If there’s a firm director who doesn’t adjust to the minimal residency requirement, which presently is 180 days or extra, below part 149 of the businesses act it was handled as a violation. It won’t be handled as a violation now.
There is a requirement to speculate 15 % of debentures maturing throughout a specific 12 months in specified devices earlier than April 30. Now it can be executed by June 30.
Insolvency Bankruptcy Code
The thresh-hold for default, is presently Rs 1 lakh, we’re elevating the threshhold of default to Rs 1 crore in order that we can forestall triggering insolvency Bankruptcy proceedings towards MSMEs.
However, we are going to watch the state of affairs state of affairs, if it will get higher then we are going to proceed like this. However, if the state of affairs continues to be like this even after April 30 then we are going to think about suspending part 7,9 and 10 of the IBC for six months in order that corporations can be stopped from being pressured into insolvency proceedings.
Fisheries- compliance associated to import permits
All sanitary import permits (SIPs) for import of shrimp groot shares, which had been to run out between March 1- April 15, 2020, at the moment are being prolonged by one other three months.
Further, the delay as much as one month within the arrival of consignments shall be ignored.
There shall be no further cost for rebooking of quarantine cubicles for canceled consignments in aquatic quarantine amenities in Chennai.
The verification of paperwork and grant of NOC for quarantine shall be relaxed from 7 days to three days.
Department of Financial Services
Debit card holders will now be capable of withdraw money from any financial institution ATM for free for the following three months.
There shall not be any minimal stability requirement charge.
The financial institution prices to be decreased for digital commerce transactions for all commerce, finance shoppers.
Department of Commerce
The following principal shall be adopted in all commerce-related departments:
For procedural and eligibility level of view the extension of timeline shall be given, however there shall be no extension or modification of scheme tips.
Stay tune for updates of the press convention.