In the wake of the coronavirus pandemic, Fin Min Nirmala Sitharaman has announced a slew of changes. Here are the updates you need.
Union Finance Minister Nirmala Sitharaman, head of the “COVID-19 Economic Response Task Force”, has announced a number of statutory and regulatory compliance relief measures amidst a complete lockdown in the country. She has also assured of announcing economic packages very soon to mitigate the coronavirus scare.
Here are all the updates on her latest announcements:
Late GST Return Filing: No Interest, Penalty On Companies With Less Than Rs 5 Cr Turnover
For companies with a turnover of less than Rs 5 crore, no interest, penalty or late fee will be levied in case of late GST return filing. However, for companies with a turnover of more than Rs 5 crore, while the interest rate has been reduced to 9 per cent from 18 per cent, no penalty or late fee will be imposed in case of late GST return filing.
Sabka Vishwas Scheme extended to June 30
The deadline for the payment date of the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDR), has also been pushed to June 30, 2020.
SVLDR scheme has two objectives:
-Liquidation of the pending Central Excise and Service Tax legacy disputes
-Encouraging non-compliant taxpayers or tax evaders to declare unpaid taxes and come voluntarily in the ambit of the tax net.
FM has assured that no interest will be imposed on SVLDR interest payments made till June 30.
Insolvency & Bankruptcy Code (IBC) Default Limit Increased To Rs 1 Crore
The Insolvency & Bankruptcy Code default limit has been steeply raised from Rs 1 lakh to Rs 1 crore. This has come as a major relief and protection for the Micro-Small and Medium Enterprises (MSMEs). It has also been announced that if the situation continues beyond April, the central government will consider suspending Sections 7, 9, and 10 of the IBC. This is to stop companies being forced into insolvency.
For newly incorporated companies, there’s an extension of six more months to file commencement of business report.
Filing Of I-T Returns & GST Extended Till June 30
The deadlines for filing the Income Tax Returns and GST have been extended from 31 March to 30 June 2020. Furthermore, the government has also extended the last date for linking PAN cards with Aadhaar from 31 March to 30 June.
Withdrawal Charges and Minimum Balance Waived off for Debit Card Holders
Bank account holders don’t need to worry about a minimum amount balance as non-maintenance charges have been waived off for three months. Additionally, a debit card of any bank can be used to withdraw money from any ATM, without any extra charges. Even the bank charges for digital trade transactions for all trade finance consumers have been reduced.
(Edited by Saiqua Sultan)