Nirmala Sitharaman Highlights: FM extends Income Tax, GST return deadlines; waives off late fee, penalty

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Updated: March 24, 2020 7:16:43 pm

Nirmala Sitharaman Highlights: FinMin has extended the deadline to file I-T, GST returns to 30 June 2020.  She has also reduced interest rate to 9 per cent vs 18 per cent, on delayed deposit of TDS. IBC proceedings may be suspended for 6 months.

Nirmala Sitharaman, compliance, statutory measures, covid 19, coronavirusNirmala Sitharaman Highlights: The Ministry of Corporate Affairs had yesterday rolled out a web form that was to ascertain the readiness of the companies towards fighting the Covid-19 pandemic.

Nirmala Sitharaman Highlights: Finance Minister Nirmala Sitharaman has extended the deadline to file IT returns to 30 June 2020.  She has also reduced interest rate to 9 per cent vs 18 per cent, on delayed deposit of TDS. The deadline to file March, April, and May, has also been extended to June-end. FinMin also announced that the companies with less than Rs 5 Cr turnover, will not have to pay interest, late fee, or penalty, however, for bigger companies, no late fee and penalty will be charged but the interest will be levied at a reduced rate of 9 per cent. The deadline for many Acts and schemes, including Sabka Vishwas Scheme, has also been pushed to 30 June 2020. In another major announcement, the independent directors of companies have received relaxation. Even if they did not hold one meeting last year, the same should not be seen as a violation in FY20.

On the Insolvency and Bankruptcy Code, the announcement has come that the default threshold limit of Rs 1 lakh has been steeply raised to Rs 1 crore. This has come as a major relief to MSMEs and it has also been announced if the situation doesn’t improve, section 7, 9, and 10 will be lifted for six months to provide cushion to the companies.

Amid coronavirus scare, any debit card can be used to withdraw money from any bank’s ATM, without any extra charge. Maintaining the minimum amount balance is also not mandatory, according to the announcements. In another announcement, the bank charges for digital trade transactions have also been reduced. FM Sitharaman said that the announcements have come from the economic task force, instituted after PM Modi announced it a few days earlier. She also assured of announcing economic packages very soon.

The Ministry of Corporate Affairs had yesterday rolled out a web form that was to ascertain the readiness of the companies towards fighting the Covid-19 pandemic. The government also said that it is a simple web form with minimum fields and can be filed from anywhere, without requiring payment or Digital Signature Certificate (DSC). The compliance is issued for all Indian companies, foreign companies, LLPs, and foreign LLPs and any one of the current Authorized Signatories of the Company or LLP can submit the form online with only OTP verification.

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Highlights

    17:54 (IST)24 Mar 2020
    Today's measures to help companies fight coronavirus

    The measures announced would definitely help various small, mid, and large companies in dealing with current Coronavirus lockdown and help people to remain in confinement for the time being. - Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers

    16:15 (IST)24 Mar 2020
    Unforeseen hurdle popped up while government was working on giving a fillip to the pace of growth in the country

    Prime Minister said that while the government was working on giving a fillip to the pace of growth in the country, an unforeseen hurdle in the form of COVID-19 came in front of the economy. He said that the challenge posed by the pandemic is graver than even that posed by the World Wars and we need to be on constant vigil to prevent its spread.

    16:12 (IST)24 Mar 2020
    New dawn of economic integration

    PM Modi has praised industry leaders for speaking in one voice on the needs of the unorganized sector. he has called it new dawn of economic integration.

    16:06 (IST)24 Mar 2020
    Invest India Business Immunity Platform launched to helping businesses withstand COVID-19

    Invest India, India’s national Investment Promotion & Facilitation Agency, under the Ministry of Commerce and Industry has launched The Invest India Business Immunity Platform. The Business Immunity Platform (BIP) is the active platform for business issue redressal, operating 24/7, with a team of dedicated sector experts and responding to queries at the earliest.

    16:03 (IST)24 Mar 2020
    Centre asks states to deploy fiscal resources for additional medical facilities

    The Central Government has asked all the State Governments to deploy fiscal resources for establishing additional medical facilities such as hospitals, clinical labs, isolation wards, expanding & upgrading existing facilities to combat the challenge posed by COVID19.

    16:01 (IST)24 Mar 2020
    Declare your readiness towards Covid-19 pandemic, govt asks companies to fill web form

    The Ministry of Corporate Affairs had yesterday rolled out a web form that was to ascertain the readiness of the companies towards fighting the Covid-19 pandemic. The government also said that it is a simple web form with minimum fields and can be filed from anywhere, without requiring payment or Digital Signature Certificate (DSC). 

    15:57 (IST)24 Mar 2020
    Bank ATM withdrawal charges removed, no Average Monthly Balance required till June

    Debit cardholders will be able to withdraw money from any ATM for free for three months, Finance Minister Nirmala Sitharaman announced today. She said that free of charge cash withdrawal from any other bank ATM will be allowed for debit cardholders for three months. This decision comes in the wake of the Coronavirus crisis which has infected over 500 people across the country. Read full story here

    15:52 (IST)24 Mar 2020
    Govt announces support for unorganized construction workers

    To support unorganized construction workers who sustain their livelihood on daily wages, an advisory has been issued today to transfer funds in the account of construction workers through DBT mode from the Cess fund collected by the Labour Welfare Boards under the BOCW cess Act. About Rs 52,000 crore is available as cess fund and about 3.5 crore construction workers are registered with these Construction welfare Boards.

    15:42 (IST)24 Mar 2020
    ICC feels the need for a clear definition of products and services

    ICC feels the need for a clear definition of products and services to ensure smooth manufacturing and supply of Essential goods. Many Non Essentials products are necessary to ensure regular supply of Essential goods. It is important to keep these items easily available as right kind of packaging is key to hygiene and ample availability of quality food products. Else unsafe food products may find their way into the markets. - Rajeev Singh, Director General, Indian Chamber of Commerce.

    15:41 (IST)24 Mar 2020
    Government of India has already identified the list of jobs and services deemed 'essential'

    "The Government of India has already identified the list of jobs and services deemed "essential" and, therefore, are not required to be in lockdown for the next few weeks. At present, there are several commodities scheduled under the Essential Commodities Act, 1955, as essential drugs; fertilizer, whether inorganic, organic or mixed; foodstuffs, including edible oilseeds and oils, etc". - Rajeev Singh, Director General, Indian Chamber of Commerce.

    15:38 (IST)24 Mar 2020
    No violation for independent directors, who did not hold even one meeting

    The independent directors of companies who have not been a part of even one meeting, should not be seen as a violation in FY20, according to the FinMin announcements

    15:35 (IST)24 Mar 2020
    Economic packages will be announced sooner, than later

    As the Finance Minister was making an announcement regarding regulatory compliance today, she said that the economic packages will be announced sooner, than later.

    15:32 (IST)24 Mar 2020
    Deadline for Sabka Vishwas scheme extended to 30 June 2020

    Taxpayers get more time to end cases of litigation regarding direct taxes. Govt extends the deadline of Sabka Vishwas Scheme to 30 June 2020, which was previously 31 March 2020.

    15:28 (IST)24 Mar 2020
    IBC threshold limit raise: Breather for MSMEs in particular, in the backdrop of many small units heading for liquidation

    "Raising the default threshold trigger under bankruptcy code from Rs 1 lakh to Rs 1 crore is a welcome measure and will provide a breather for MSMEs in particular, in the backdrop of many small units heading for liquidation,” Hari Hara Mishra, Director, UV ARC.

    15:26 (IST)24 Mar 2020
    FinMin closely monitoring stock market volatility

    FM Sitharaman said that she is closely monitoring volatility in the stock market and the FinMin is in contact with regulators three times a day.

    15:23 (IST)24 Mar 2020
    Deadline for GST returns filing extended to 30 June 2020, penalty, late fee, interest waived off

    The deadline to file March, April, and May, has also been extended to June-end. FinMin also announced that the companies with less than Rs 5 Cr turnover, will not have to pay interest, late fee, or penalty, however, for bigger companies, no late fee and penalty will be charged but the interest will be levied at a reduced rate of 9 per cent.

    15:21 (IST)24 Mar 2020
    No need to search for own bank ATMs, visit any ATM

    FinMin has waived off extra charges on using other bank's ATMs, giving people the facility to use nearby ATMs without paying any extra charge. 

    15:18 (IST)24 Mar 2020
    No need to maintain minimum balance in bank accounts

    FM Sitharaman today announced that there will be no penalty for not maintaining the minimum balance amount in the bank accounts.

    15:03 (IST)24 Mar 2020
    FM raises threshold limit for IBC proceedings to Rs 1 crore

    Threshold for IBC extended to 1 crore rupees. Depending on situation, an IBC moratorium for 6 months may be on the cards if situation remains bad. However latter not implemented yet

    14:23 (IST)24 Mar 2020
    Retailers body urges state govts to keep all forms of grocery stores open during lockdown

    The Retailers Association of India (RAI) has requested state administrations to allow food and grocery stores of all formats, irrespective of their locations, to stay open during the lockdown period. The request comes after some unfortunate incidents in Maharashtra, Andhra Pradesh, Uttar Pradesh, Punjab and Gujarat where the police beat up employees and delivery staff of retailers and dragged them to police stations.

    14:22 (IST)24 Mar 2020
    Tourism sector comes to halt as 32 states declare lockdown; these five states may face maximum hit

    The sector that provides employment to thousands of people in organised and unorganised sectors, with Foreign Exchange Earnings (FEEs) of nearly $30 billion a year, has faced the direct impact of coronavirus scare. Even before the lockdown, India hosted 72,000 fewer tourists in the month of February, according to the data provided by Prahlad Singh Patel, MoS (IC), Ministry of Tourism, in a reply to a question in Lok Sabha. Read full story here

    14:18 (IST)24 Mar 2020
    Coronavirus outbreak: India has tremendous capacity in eradicating COVID-19 pandemic, says WHO

    India, which led the world in eradicating two silent killers — smallpox and polio — in the past, has a tremendous capacity in eradicating the deadly coronoavirus pandemic that has now claimed nearly 15,000 lives globally, according to a top WHO official.

    14:15 (IST)24 Mar 2020
    India Inc seeks fiscal stimulus, moratorium on debt repayment to mitigate coronavirus impact

    To mitigate the impact of coronavirus outbreak on the economy, India Inc has sought a host of measures, including a year-long moratorium by banks on debt repayment, tax cuts and fiscal stimulus am ounting to Rs 2 lakh crore to needy citizens through Aadhaar-based direct benefit transfer.

    14:10 (IST)24 Mar 2020
    Digital India: Risk of coronavirus on currency notes, ATMs make banks recommend digital transactions

    As cases related to coronavirus have swelled up in India, the social-distancing and avoiding the touch of other humans and surfaces are the unanimous concern of every citizen. In this unfortunate time, the currency notes that are circulated with regular contact of hands also raise an alarm.

    14:07 (IST)24 Mar 2020
    Coronavirus crisis: Modi’s Jan Dhan accounts can be used to help daily wage workers, suggests FICCI

    Industry body FICCI has suggested the government to use Jan Dhan accounts to facilitate a one-time payment to daily wage workers as over 500 districts in the country have been put under lockdown in the wake of the coronavirus outbreak. “One-time payment by transfer of Rs 5,000 to daily wage earners’ Jan Dhan accounts (below the poverty line) to meet the daily needs in view of the loss of wages due to lockdown,” FICCI said in a report on Monday. Read full story here

    14:05 (IST)24 Mar 2020
    Coronavirus lockdown: If not for hoarding, India has enough food stock to feed its poor

    India will have enough grain stockpiles to feed its poor for at least a year-and-a-half as reserves are likely to further balloon after record harvests in the South Asian nation that has been locked down to check the spread of the coronavirus.

    14:04 (IST)24 Mar 2020
    Delhi Assembly passes budget for 2020-21; Rs 50 crore set aside to deal with coronavirus

    The Delhi Assembly passed a Rs 65,000-crore budget for the 2020-21 financial year on Monday, with an emphasis on the education, health and transport sectors. In the budget presented in the House by Deputy Chief Minister Manish Sisodia, the Aam Aadmi Party (AAP) government set aside Rs 50 crore to deal with the coronavirus outbreak.

    14:03 (IST)24 Mar 2020
    PM asks India Inc to maintain production lines of essential commodities, prevent black marketing amid coronavirus fight

    Prime Minister Narendra Modi on Monday asked Indian companies to maintain production lines of essential commodities and ensure there is no hoarding as well as black marketing in the wake of the country fighting the coronavirus outbreak.

    14:00 (IST)24 Mar 2020
    Government expenditure system declared as essential service

    Keeping in mind the year-end rush and loosening the purse strings to cope with the impact of coronavirus, the finance ministry on Monday declared the government expenditure system to be an essential service, thereby ordering all offices connected with the payment functions to remain open on working hours.

    13:58 (IST)24 Mar 2020
    Nirmala Sitharaman’s food bags for people in need; allows states to take foodgrain from FCI, pay later

    Finance Minister Nirmala Sitharamna yesterday allowed states and Union Territories to lift foodgrain from FCI on three-month credit for distributing to poor and needy amid the coronavirus scare. The decision has come amid the lockdown of many states due to the Covid-19 pandemic. Read full story here

    13:54 (IST)24 Mar 2020
    Govt says, no impact on Indian imports

    "There is no impact on Cargo Vessels. However, as per the directions of the Ministry of Health & Family Welfare, International cruise vessels arriving from foreign destinations are not allowed to call Indian Ports till 31 March 2020," said a statement by the Ministry of Shipping. 

    13:52 (IST)24 Mar 2020
    PM Modi to address at 8 pm on Covid-19 pandemic

    Later, at 8 pm, Prime Minister Narendra Modi will address the nation on issues relating to the menace of COVID-19.

    13:46 (IST)24 Mar 2020
    Nirmala Sitharaman may announce relief on compliance for companies

    FM Sitharaman may ease statutory and regulatory compliance for companies to help them survive amid coronavirus pandemic.

    13:44 (IST)24 Mar 2020
    Is your company ready to fight coronavirus? Fill this form and tell the government

    “The form is not onerous and only intends to spread awareness to fight Covid-19. It is to inform the companies about the impact of the coronavirus, and diligent measures have been taken to not make hard obligations such as the director’s signature, etc,” Karan Mitroo, Partner, Luthra & Luthra Law Offices, told Financial Express Online. Read full story here

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