Synopsis on relaxation brought in various compliance requirement by our Finance Minister

March 24, 2020 : To safeguard the interest of corporates and other person, today Union Finance Minister Nirmala Sitharaman announced various regulatory relief in view of complete shutdown all over India to control the spread of the highly contagious COVID-19.

All relief and relaxations towards the laws are summarized below for ease of reference. However, extension of timelines for various compliance and procedures are provided but the detailed notifications will be issued by Ministry of Commerce.

Relaxation in Income Tax:

  • Filing of Income Tax return for financial year 2018 – 2019 extended to 30th June 2020
  • Reduced interest rate to 9% for delayed tax payment till 30th June and no late fee or penalty shall be charged for any delay during this period
  • All investments and tax saving instruments for rebates can be made by 30th June 2020
  • Linking of Adhaar-PAN extended to 30th June 2020
  • Tax dispute resolution scheme Vivad Se Vishwas extended up to 30th June 2020
  • No additional interest of 10% on payment to Assessee who availed Vivad Se Vishwas scheme till 30th June 2020
  • Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer shall be extended to 30th June 2020

Relaxation in GST:

  • Deadline for filing GST returns for March, April and May 2020 extended upto 30th June 2020
  • Relaxation provided to companies with less than Rs. 5 Crore turnover for interest, late fees or penalty
  • Companies with more than Rs. 5 Crore turnover, no late fee and penalty, only interest at a reduced rate of 9%

Relaxation in Custom and Excise:

  • Payment under Sabka Vishwas Scheme shall be extended to 30th June, 2020 and no interest shall be charged for this period
  • 24 X 7 Custom Clearance of essential commodities and services till 30th June 2020
  • Due dates for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of applications, reports, any other documents and time limit for any compliance under the Customs Act and other allied Laws shall be extended to 30th June 2020

Relaxation in Companies Act, 2013:

  • No additional fees for late filing of forms during 1st April to 30th September 2020
  • Rules related to holding Board Meeting relaxed for 60 days for next two quarter till 30th September 2020
  • CARO 2020 will be applicable from financial year 2020 – 2021 instead of 2019 – 2020
  • No violation in case Companies unable to hold one meeting of Independent Directors as per Schedule 4
  • Additional period of 6 months be provided to newly incorporated companies for filing commencement of business form
  • Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020 – 2021 before 30th April 2020 shall be allowed to be complied with till 30th June 2020
  • Requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020 may be done so before 30th June 2020
  • Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation

Relaxation in Insolvency and Bankruptcy Code, 2016:

  • Threshold limit for default raised from Rs. 1 Lakh to Rs. 1 Core
  • May suspend Section 7, 9 and 10 of IBC for next 6 months to stop companies being forced to Insolvency

Relaxation in Banking Activities:

  • For next 3 months there will be no charge levied to debit card holders for withdrawal of cash from ATM of any other bank
  • Waive off charges for minimum balance requirement
  • Bank charges reduced for digitally transactions related to all trade finance