FM Nirmala Sitharaman: Last date to file ITR for FY18-19 extended, interest rate reduced on delayed payment; Covid-19 Impact

Finance Minister Sitharaman Nirmala Sitharaman announced several relaxations in the view of the lockdown announced to combat the spread of the novel Coronavirus, Covid-19 virus. Finance minister also announced that the government is preparing an economic package which will be announced soon in a bid to tackle the economic fallout affecting the Indian economy due to coronavirus pandemic. “Work is going on and we are very close to coming up with an economic package that will be announced sooner rather than later,” she stated.

Here are the important measures announced by FM, Nirmala Sitharaman:

• The last date for filling delayed income tax return (ITR) for the financial year 2018-19 has been extended till June 30, 2020 from March 31 now and interest rate for delayed payment of interest has been reduced to 9 per cent from 12 per cent earlier.
• Reduction of interest on delay in deposit of TDS will be reduced to 9 per cent from 18 per cent and all compliances for tax payment now stands extended till June 30, 2020.
• Last date to file ITR for FY2018-19 has been extended to June 30, interest rate reduced on delayed payment of tax.
• All compliances under Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, Vivaad se Vishwaas, have been extended to June 30, 2020.
• Extension of the last date to link PAN with Aadhaar to June 30 from March 31 earlier.
• Eased penalty, interest for GST late payment for small businesses.
• Last date to file GST return for March, April and May 2020 extended to June 30, 2020.
• For companies with less than Rs 5 crore turnover, no interest, penalty, late fee to be charged.
• Threshold of default extended to Rs 1 crore from existing Rs 1 lakh now to prevent insolvency proceedings against MSMEs.
• Moratorium to be issued on MCA-21 registration from April 1-Sept 30.
• Requirement of mandatory holding of board meetings for companies extended by 60 days.
• If situation continues beyond April, government to consider suspending Sections of IBC for 6 months to stop cos being forced into insolvency.
• No minimum balance maintenance requirement for bank account holders for the next three months.
• Debit card holders who withdraw cash from any other bank’s ATM can do so without any fee for the next three months.
• Modi government has also relaxed rules for informing commencement of business by new companies.
• For new business, commencement certificate can now be given in 1 year as compared to 6 months earlier.