Union finance minister Nirmala Sitharaman on Tuesday said that the last date to file income tax (I-T) returns for the financial year 2018-19 (FY18-19) has been extended to June 30, 2020. The interest on delayed payment has been reduced to 9 per cent from 12 or 18 per cent earlier, she added.
Here are the major updates from the finance minister’s presser:
- Aadhaar-PAN linking deadline has also been extended to June 30, 2020.
- ‘Vivad-se Vishwas’ (settling disputes for indirect taxes) scheme has also been extended to June 30 with no additional charge.
- Last date to file March, April and May 2020 GST returns and composition returns extended to June 30.
- For companies with less than Rs 5 crore turnover, no penalty or interest will be charged.
- For over Rs 5 crore (bigger companies), interest at reduced rate of 9% will be charged.
- Relief for imports and exporters: Customs clearance now an essential service, till June 30, 2020 it will be working 24×7.
- For newly incorporated companies, there is a requirement to file declaration for the commencement of business within six months of incorporation. This has been extended to six more months.
- If a company director who doesn’t comply with the minimum residency norm (staying in the country for 182 days or more), this won’t be treated as violation
- Mandatory requirement of holding board meetings is being relaxed by a period of 60 days, this relaxation is for the next two quarters.
- In relief to the small businesses, insolvency proceedings’ threshold limit extended from Rs 1 lakh to Rs 1 crore
- Debit card holders can withdraw cash from any bank ATMs without any additional charge for the next three months (till June 30).
- No minimum balance is required for the next three months.
- Bank charges have been reduced for all trade and finance consumers.
- 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 including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between March 20, 2020 to June 29, 2020 will be extended to June 30, 2020.
Earlier in the day, the finance minister mentioned that the Centre is “readying an economic package which will be announced sooner rather than later” amid the Covid-19 lockdown.
Prime Minister Narendra Modi is also scheduled to address the nation at 8 pm via video-conferencing. This would be PM Modi’s second address after he called for the ‘Janta Curfew’ in his first one to contain the coronavirus spread.
The Prime Minister on Monday held a conference call with some of India’s top entrepreneurs and bankers, who urged policy makers to immediately slash interest rates by as much as a full percentage point, transfer cash to the poorest citizens, and suspend loan-repayments.
He also held two interactions with heads of media houses and India Inc leaders via video conferencing.
On March 19, PM Modi had announced the formation of a ‘Covid-19 Economic Response Task Force’ to tackle the economic situation.
Over the past three days, many states have declared curfews and India’s international borders have been shut for most visitors since March 11. India so far has close to 500 virus cases.
Controlling the outbreak is crucial the government is going through its worst slowdown in a decade. Foreign investors are selling Indian assets at an unprecedented pace. Deaths from the novel coronavirus have topped 15,000 across the globe.
Meanwhile, the Reserve Bank of India (RBI), which is due to review interest rates April 3, announced a Rs 1 lakh crore cash injection on Monday.
(Source: Times of India)
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