COVID 19- IMPACT KEY HIGHLIGHTS FOR RELIEF IN FINANCIAL SECTORS AND RETURN DUE DATES

Ministry of Corporate Affairs

Requirement to hold mandatory board meetings relaxed for 60 days for next two quarters

The government on Tuesday, 24th March 2020 , said that the mandatory requirement of holding  board meetings is being relaxed by a period of 60 days till next two quarters i.e 30.09.2020.

Extra 6 months given to newly incorporated firms to file declaration

The finance ministry announced that for newly incorporated companies, there is a requirement to  file declaration on commencement within six months, which has been extended by additional  six months to file their returns. Thus, the newly incorporated companies have been given a time  of one year to file their Commencement of Business Return.

Minimum Residency requirement not applicable for this Financial Year

Nirmala Sitharaman also said that If there was a company director who does not comply  with the minimum residency requirement, it shall “not be treated as a violation.”

Applicability of CARO 2020 with effect from 2020-2021 instead of 2019-2020

The finance minister Nirmala Sitharaman also said that the applicability of The Companies  Auditors’ Report Order 2020, which was supposed to have come into force in 2019-20, has been shifted to 2020-21.

No late filing fees imposed from 01.04.2020 to 30.09.2020

No additional fees shall be charged for any document, return, statement etc. required to be filed with MCA-21.

No violation if Independent Directors Meeting not held during the FY 2019-2020

As per the regulatory requirements even if no meeting of the Independent Directors had been held during FY 2019-2020 , it shall not be considered as a violation.

Deposit reserve of 20% of Deposits maturing on 30.04.2020 be extended to 30.06.2020

The Deposits which were due for maturity on or before 30.04.2020 for which a deposit reserve of 20% had to be created has been extended for compliance till 30.06.2020.

Requirement of 15% investment in specified securities of deposits maturing on 30.04.2020 be extended to 30.06.2020

Requirement to invest in 15% of debentures maturing during a particular year in specified instruments before 30.04.2020 may be done before 30.06.2020

CUSTOM & CENTRAL EXCISE

Customs clearance will operate 24×7 till 30 June, says FM

In a major relief to imports/exporters, the government on Tuesday, 24th March 2020 , said that customs clearance is now an essential service, till 30 June, 2020 and it will be working 24/7.

Payment under ‘Sabka Vishwas’ scheme extended to 30 June

The government announced on Tuesday, 24th March 2020 that payment date under the ‘Sabka Vishwas’ scheme, which was for settling disputes in the indirect tax regime, has been extended till 30 June 2020.

GOODS AND SERVICE TAX

No interest, penalty for firms with less than Rs 5 cr turnover

The finance minister announced on Tuesday, 24th March 2020 that there is no interest, no penalty and no late fee will be charged for companies with a turnover of less than Rs 5 crore. The minister said that the interest rate for such companies is reduced to 9 percent.

She added that only interest will be applicable, but no late fee and no penalty for bigger companies

Last date of filing GST returns extended to 30 June

The last date for filing March, April and May 2020 GST returns is being extended to 30 June 2020, said Nirmala Sitharaman during the media conference on Tuesday, 24th March 2020 , 2020.

She added that different staggering dates will be applicable, but all will be the end of June. The interest rate for filing a delayed return has also been brought down to 9%

Aadhar Card-Pan Card linking last date extended to 30 June, says Nirmala Sitharaman

The finance minister announced on Tuesday, 24th March 2020 that the Aadhaar-PAN linking date  has been extended to 30 June 2020 from what was 31 March 2020.

INCOME TAX

Interest rate on delayed deposit of TDS reduced Nirmala Sitharam also said that the Interest rate on delayed deposit of TDS reduced.
She said, “No extra 10 percent interest will be charged between now and 30 June.”

Last date to file I-T returns extended to 30 June

The last date for income tax returns for the financial year 2018-19 is extended from 31 March to 30 June, announced Nirmala Sitharaman on Tuesday, 24th March 2020 .

She added that for the delayed payments, interest rate has been reduced from 12 percent to 9 percent.

She said, “No extra 10 percent interest will be charged between now and 30 June.”

INSOLVENCY AND BANKRUPTCY CODE

Threshold for default extended to Rs 1 crore, says FM

Nirmala Sitharaman on Tuesday, 24th March 2020 announced that the threshold of default extended to Rs 1 core from existing Rs 1 lakh, in order to prevent insolvency proceedings against MSMEs Insolvency and Bankruptcy Code.

Govt might suspend Section 7, 9 and 10 of IBC

The government is considering to suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC), at a later stage, if the current situation continues beyond six months.

Meanwhile, for fisheries, the finance minister said that a one-month delay will be condoned in the arrival of the consignment of fisheries. Import permits for fisheries expiring in April have been extended by three months

RBI, finance ministry monitoring volatility in stock market; SEBI has suggested guidelines

She reiterated that an economic package will be announced ‘sooner’, rather than later.

She also said, ‘We are closely monitoring the situation. SEBI has come up with guidelines and stated its position on the recent volatility. We are monitoring the stock market thrice a day.

The government is working on an economic package to deal with the hardships caused by the lockdown to control the coronavirus crisis and the same will be announced soon

FINANCIAL NEWS

NO IMPOSITION OF MINIMUM BALANCE REQUIREMENT FOR 3 MONTHS

The finance minister also clarified that banks not imposing the minimum balance requirement fee is for a three-month period, for now.

NO WITHDRAWAL CHARGES ON DEBIT CARDS

Debit cardholders can withdraw money, free of charge, announces FM from any bank ATM for the next three months. She also stated that there shall not be any minimum balance requirement fee.

REDUCED BANK CHARGES ON DIGITIAL TRADING

The government said that bank charges are reduced for digital trade.

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