Finance Minister Nirmala Sitharaman today announced some relief towards income tax filing to reduce the hardship of the tax payers in view of coronavirus outbreak in the country. The government also offered some relief on GST filing and on maintenance of minimum balance in back accounts. For companies, the government also announced some relief on compliances.
“Amidst coronavirus panic and lockdown, an extension of various deadlines especially income tax returns filing, Vivad se Vishwas scheme, and GST filing dates was the need of the hour," said Kapil Rana, Chairman and founder, HostBooks Limited.
Here are some key highlights:
1) Debit card holders can withdraw cash free of charge from any other bank ATMs for the next three months
2) Waiver of minimum balance in bank accounts for next three months. Applicable on all banks.
3) Deadline for income tax filing for FY18-19 has been extended to June 30
4) Interest for filing for delayed ITR for FY18-19 reduced to 9%, from 12%
5) Reduced interest rate of 9% on delayed deposit of TDS, as compared to 18% earlier
6) Aadhaar PAN linking date extended to June 30
7) Deadline for for filing March, April, May GST returns and composition returns extended till June 30, 2020
8) Vivad se Vishwas Scheme extended to June 30. No additional 10% charge on Vivad Se Vishwas scheme till June 30, 2020
9) Sabka Vishwas scheme on indirect taxes extended till June 30, no interest will be charged
10) For companies, requirement of holding board meetings is being relaxed by a period of 60 days. This relaxation is for the next two quarters.
Customs clearance now an essential service and till June 30th, 2020 it will be working 24/7
To stop companies being forced into insolvency proceedings, the threshold for default under IBC raised to ₹1 crore, from ₹1 lakh. This will benefit MSMEs
Newly incorporated companies get an additional 6 months to file declaration. There is a requirement to file declaration for the commencement of business within 6 months of incorporation.