Here is a list of the key announcements made by the Finance Minister
The Union Finance minister Nirmala Sitharaman made an announcement regarding some measures for the extension of the statutory and regulatory compliances. This has been done because of the coronavirus outbreak that has been spreading in the country and has a drastic impact on the economy. There have been fears of an economic emergency in the country but the Finance Minister said in a statement that the Economic Task Force will be soon announcing the economic relief package so that they are able to deal with the impact of the pandemic on the economy of the country.
The key announcements made by the Finance Minister are:
- The persons who hold a Debit card who withdraw their cash from the bank ATMs can now do it free of charges for the coming three months. This measure has been adopted so that the burden on the customers can be removed who are in urgent need of cash and will avoid the overcrowding at the branches of the banks.
- If the minimum balance requirement has not been kept by the customer, there will be no charges on it. The largest lender, the State Bank of India has waived the need of keeping at least a minimum balance in their savings account.
- A Reduction in the digital charges for all trade transactions.
- For the Financial year of 2018-19, the last date to file the returns has been extended to 30th June 2020. For any delayed payments that will be made till 30th June, the interest rate on that will be reduced from 12% to 9%.
- For the delayed payment of the TDS, the interest rate has been reduced from 18% to 9%.
- The linking of the Aadhaar-pan has been extended from 31st March till 30th June.
- The "Vivaad se Vishwaas" scheme has been extended to 30th June. There is no requirement to pay the additional payment of 10%.
- All the compliances under the Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, Vivaad se Vishwaas are extended to 30th June 2020.
All the GST returns for the months of March, April, May and the composition returns have been extended to 30th June 2020.
- No late fees or Penalty will be charged for the companies with less than 5 crores. For the companies above Rs 5 crores, the only int will be at the rate of 9 percent.
- The "Sabka Vishwaas" scheme for the indirect taxes that had the last date till 31st March has now been extended to 30th June 2020. Interest will not be levied.
- The Customs clearance will work 24x7 till 30th June 2020.
- In respect of the MCA21 registry, a moratorium is being issued starting 1st April 2020 till 30th September 2020. No additional fees will be charged for late filing.
- The mandatory requirement to hold a Board meeting will now be relaxed for 60 days for the coming two quarters.
- An extra duration of six more months is given to file the declaration of the commencement of business for all the newly incorporated cos.
- If the company has a company director who is not complying with the minimum residency requirement of at least 182 days. It used to be treated as a violation but It shall not be treated as one for now.
For Insolvency and Bankruptcy Code :
- The threshold of default is Rs one lakh for now. This is being increased from Rs one lakh to Rs one crore so as to prevent the trigger of the insolvency proceedings for SMEs.
- If the same continues beyond the month of April, then sec 7, 9, 10 of the IBC will be remaining suspended for a duration of six months.
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