Covid 19 : Compliance Relaxations


Covid 19 : Compliance Relaxations 

Bases on the Covid 19 exigency situation, the Government of India has relaxed many compliance deadlines and penalties on Income Tax, GST, Custom /Central Excise, Insolvency And Bankruptcy Code, 2016 and Banking operations.

Income Tax Related - FY 2018-2019 | AY 2019-2020

  •  ITR last date extended to 30th June 2020
  • Tax payment made till 30Th June- Interest reduced from 12% to 9%  Delayed deposit of TDS till 3oth June- Reduced interest 9%
  • Extension of dates for various compliances
  • Due date for all notices/orders/appeals/applications/reports/any other document/any compliance by taxpayers up-to 30th June, 2020
  • All investments/Saving instruments for rebates can be made by 30thJune 2020.
  • Adhaar-PAN linking date extended to 30th June 2020
  • Vivad Se Vishwas Scheme extended up-to 30th June 2020, No additional charge of 10% up-to 30th June 2020, earlier disputed tax has to be deposit by 31st March without additional charge of 10%.

GST Related

  • March, April and May 2020 month GST returns & composition returns filing date extended up-to 30th June 2020.
  • Companies with less than 5 Crore Turnover no interest, late fees or penalty.
  •  Other companies more than 5 Crore turnover, no Late fee and penalty, only interest at reduced rate of 9%
  • Date for opting composition scheme extended to 30th June 2020.

Custom /Central Excise

  • Sabka Vishawas scheme (Indirect Taxes) extended from 31st March 2020 to 30th June 2020, no interest will be levied at all.
  • Custom clearance till 30th June 2020 will be 24*7 MCA
  • From 1st April till 30th September, 2020, no additional fees for late filings.
  • Holding board meetings period of 60 days relaxation till next 2 quarters.
  • Applicability of CARO 2020 will be from FY 2020-2021 instead of 2019-2020
  • 2019-2020, if no meeting held with Independent director, no violation.
  • For newly incorporated companies, commencement of business form can be filed with additional time of 6 months.
  • If company director not comply with minimum mandatory period to be stayed in India u/s 149 of Companies act, it will not be treated as violation.

Insolvency And Bankruptcy Code, 2016

  • Threshold of default raised from Rs. 1 Lacs to 1 Cores
  • If situation of COVID-90 continues like this, after 30th April, 2020, may suspend section 6 section 7, 9 and 10 of IBC for next 6 months. 

Banks Related (DFS Related)

  • Debit card holders can withdraw cash from any bank ATM- No charge up-to next 3 months
  • No minimum balance requirement fees for bank accounts
  • Bank charges reduced for digitally transactions related to all trade finance