FM Announcement at 2 PM on 24th March 2020 in respect of Compliance and Regulatory Matters Due to COVID 19

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FM Announcement at 2 PM on 24th March 2020 in respect of Compliance and Regulatory Matters Due to COVID 19

Overview : <h1 class="title2" style="font-family: &quot;Open Sans&quot;, sans-serif; font-weight: bold; margin: 10px 0px 0px; padding: 0px; font-size: 48px; line-height: 1.1; color: rgb(0, 0, 0);">Deadline for I-T, GST retruns filing extended till Jun 30</h1>

Part A – Income Tax Act
1. Last date of filing of return for FY 2018-19 extended to 30th June 2020 from 31st March. For delayed payments of tax, interest rate reduced from 12 to 9%
2. No extension, but on delayed deposit of TDS - reduced interest of 9% will be charged till 30th June 2020
3. Various other dates have been extended to 30th June 2020
a. Due date for issue of notice, approval order, sanction order, return, statement, application, report, investment u/s 80C, Capital gain investment for rollover benefit under Income Tax Act, Wealth Tax Act, Benami Act, STT Law, CTT law, Vivad se Vishwas Law, Black Money Law
4. Aadhar – PAN linking date has been extended to 30th June 2020
5. Vivad se Vishwas scheme has been extended to 30th June 2020 and no additional charge upto 30th June 2020 (Earlier additional 10% was chargeable after 31st March)
Part B – Goods and Service Tax
1. Last date for March, April and May GST return and Composition return has been extended to 30th June 2020 (27th / 29th / 30th June in Phases)
2. Companies having less than 5 Crore turnover – No interest, no late fee, no penalty
3. Bigger companies – no Late fee and penalty – Only interest at reduced rate of 9% for late payment after 15 days original due date
4. Date for opting of composition scheme has been extended to 30th June 2020
Part C – Customs
1. Sab ka Vishwas having extended last date from 31st March 2020 extended to 30th June 2020. No interest will be levied if we pay upto 30th June 2020
2. Customs clearance upto 30th June 2020 will operate 24*7, so that no importers and exporters are impacted
Part D – Corporate Law
1. In respect of MCA 21 registry, there is a Moratorium issued from 1st April to 30th September 2020 – No late fees for late filing
2. Holding board meeting relaxed by 60 days for next 2 quarters.
3. Applicability of CARO 2020 will be applicable from FY 2020-21 instead of FY 2019-20.
4. For FY 2019-20 even if 1 meeting has not been held with Independent Director, it shall not be considered as violation
5. For newly incorporated Company – Requirement of filing of declaration of commencement of business extended from 6 months to 12 months
6. Company director who does not comply with minimum residency limit in India of 182 days u/s 149 of Companies Act – Shall not be treated as a violation
7. Requirement of Deposit reserve of 20% of deposits which are maturing in FY 2020-21 to be created before 30th April 2020 extended to 30th June 2020
8. Requirement to invest 15% of debentures maturing in specific year in specific investments by 30th April to 30th June 2020.
Part 5 – Insolvency Bankruptcy Code
1. Threshold of default of Rs 1 lakh increased to 1 crores to prevent MSME to go into bankruptcy.
2. May consider suspending Section 7, 9 and 10 of IBC for period of 6 months if situation continues like this upto April 2020

For More Information

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