Quick Summary of Compliance Relaxation Measures announced by Finance Minister

Quick Summary of Compliance Relaxation Measures announced by Finance Minister

Union Finance Minister Nirmala Sitharaman today announced various statutory and regulatory compliance relief measures amid a complete shutdown almost all over the country to control the spread of the coronavirus. FM has extended compliance deadlines and provided various relief measures in Income Tax, GST, Customs, IBC, Ministry of Corporate Affairs (MCA) and other financial measures.

The compliance relief measures are summarised below for your quick reference.

(A) INCOME TAX COMPLIANCES

(A1) Extension of Due Date

S. N. Particulars Original Due Date Extended Due Date
1. Last date of Income Tax Returnfor FY 2018-19 31.03.2020 30.06.2020
2. Aadhaar-PAN linking date 31.03.2020 30.06.2020
3. Vivad se Vishwas scheme(No Additional 10% payment if payment made by) 31.03.2020 30.06.2020

(A2) Bulk Extension of Due Date (if falling due between 20.03.2020 to 29.06.2020)

1. Due date of 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 : Time limit extended to 30.06.2020

2. Payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT

- Reduced interest rate at 9% instead of 12 %/18 % per annum.

- No Late fee/ Penalty

(B) GST COMPLIANCES

(B1) Extension of Due Date

S. N. Particulars Extended Due Date
1. Last date for filing GSTR-3B in March, April and May 2020-       T/O less than Rs. 5 croreNo Interest, Late fees/ Penalty-       Others

No Late fees/ Penalty

Interest @ 9% (Currently 18%)

30.06.2020
2. Composition Option-       Opting of Scheme-       Making payment for Quarter ended 31stMarch 2020-       Return filing for FY 2019-20 30.06.2020

(B2) Bulk Extension of Due Date (if falling due between 20.03.2020 to 29.06.2020)

Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws : Time limit extended to 30.06.2020

 (C) EXCISE AND CUSTOM

(C1) Extension of Date

  • Sabka Vishwas Scheme  : Payment date extended to 30th June, 2020.
  • 24X7 Custom clearance till end of 30th June, 2020

(C2) Bulk Extension of Due Date (if falling due between 20.03.2020 to 29.06.2020)

  • Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws
  • Time limit extended to 30.06.2020

(D) MCA COMPLIANCES

S. N. Topic Relaxation
1. Moratorium Period:1st April 2020 to 30th September 2020 No additional fees shall be charged for late filing during the moratorium period in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date.
2. Holding of Board Meeting Extension by 60 days till next 2 Quarters i.e. till 30th September
3. CARO 2020 Deferred to FY 2020-21
4. Independent Director meeting Holding of atleast one Independent Director meeting without attendance of non-independent meeting and members : Relaxation for FY 2019-20
5. Deposit Repayment Reserve Creation of DRR of 20% of deposits maturing in FY 2020-21 can be done till 30.06.2020 (instead of 30.04.2020)Debentures maturing during a year
6. Debentures maturing during a year Investment 15% of such amount in specified instruments can be done till 30.06.2020 (instead of 30.04.2020)
7. Resident Director Non-compliance not to be treated as violation

(E) Insolvency Bankruptcy Code (IBC)

  • Threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh)
  • Section 7, 9 and 10 of the IBC 2016 may be suspended for a period of 6 months

(F) Financial Services

Relaxations for 3 months

¡  Debit cardholders to withdraw cash for free from any other banks’ ATM

¡  Waiver of minimum balance fee

¡  Reduced bank charges for digital trade transactions for all trade finance consumers

If you have any question or any comment/suggestion, kindly let me know.


About Chintan Patel FCA, CPA(USA), Cert.IFRS(ICAI), CISA (USA), DISA, DIRM

CA Chintan Patel is a partner of Naresh J. Patel & Co. Chartered Accountants (www.nareshco.com). Key Professional Contributions: Immediate Past Chairman of Ahmedabad Branch of WIRC of ICAI, Co-author of book on Ind AS & ICDS published by Taxmann, Trainer/Faculty at more than 300 seminars/conferences. He has over 15 years of post qualification experience working with SMCs, MNCs on International GAAP, Companies Act, 2013, GST and other advisory.
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