Income Tax relief measures announced due to nation-wide lock-down

Here is a list of income tax relief measured announced by the finance ministry

Published: March 26, 2020 at 8:19 pm

Last Updated on

Owing to the nationwide shutdown the Finance Minister (FM) addressed the media regarding certain statutory and regulatory matters and extension of various timelines on 24.03.2020. A comprehensive economic package to stimulate the economy is also expected shortly. Let’s have a look at the important announcements made by the FM on 24.03.2020

Income Tax Matters

    • For AY 2019-20, the last date for ITR filing will be 30.06.2020
    •  On delayed payment of any direct tax between 20.03.2020 and 30.06.2020, the interest rate will be reduced to 9%.
    • No extension for the deposit of TDS. But on delayed payment of TDS, only reduced interest of 9% will be charged on delayed deposit till 30.06.2020.
    • Vivad se Vishwas Scheme extended to 30.06.2020 without the additional 10% payment.


  • All documents/notice/intimation/approval/order/filling of appeal or any document, including investments in saving instruments, capital gains, Income Tax Act, Wealth Tax Act, Prohibition of     Benami Property Transaction Act, Black Money Act, STT Law, CTT Law, Equalization Levy Law, Vivad Se Vishwas Law, where time limit was expiring between 20.03.2020 till 29.06.2020, all are extended to 30.06.2020. Thus, now an investor in tax saving instruments like ELSS can make investments for FY 2019-20 up to 30.06.2020. The investor will have the option to claim the investments made between 01.04.2020 to 30.06.2020 in either FY 2019-20 or FY 2020-21 based on his requirement. 



  • Last date for filling of March, April and May 2020 returns and also composition returns are extended to 30.06.2020, with staggering dates as of now with a maximum up to 30.06.2020.
  • For companies having a turnover less than 5 crores, no interest, no late fee and no penalty will be charged.
  • For others, no late fee and penalty, but reduced interest at 9% will be charged.
  •  The date for opting for composition scheme extended to 30.06.2020.
  • Due date for issue of notice, notification, approval order, sanction order, filing of the appeal, furnishing of return, statements, applications, reports, any other documents, the time limit for any compliance under the GST laws where the time limit was expiring between 20.03.2020 till 29.06.2020, all are extended to 30.06.2020.

Customs and Central Excise

  • Sabhka Vishwas scheme, the due date of which was 31.03.2020, now is extended to 30.06.2020. No interest for this period shall be charged if paid by 30.06.2020.
  • Customs clearance will be 24*7 up to 30.06.2020.


  • In respect of any document, return, statement etc. to be filed in the MCA 21 registry in the moratorium period from 01.04.2020 till 30.09.2020, there shall not be any additional fee for late filling,
  • For holding board meetings, relaxation is given for 60 days till the next two quarters.
  • Applicability of CARO 2020 postponed to FY 2020-2021.
  • For FY 2019-20, even if independent directors of the company do not hold a single meeting, it will not be seen as a violation.
  • For newly incorporated companies, the requirement of filing of the declaration of commencement of business is extended from 6 months to one year.
  • If the director doesn’t comply with a minimum residency of 182 days in a year u/s 149 of Companies Act, 2013, it will not be treated as a violation.
  • The requirement to create a Deposit reserve of 20% of maturing on or before 30.04.2020 is now to be complied with by 30.06.2020.
  • The requirement of an investment of 15% of debentures maturing during a particular year in specified instruments till 30.04.2020 is now extended to 30.06.2020.

Insolvency and Bankruptcy Code

  • The threshold of default under section 4 of the IBC 2016 increased to Rs 1 crore (from the existing threshold of Rs 1 lakh) to prevent triggering of insolvency proceedings against MSMEs. Suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months may be considered if the COVID-19 crisis persists beyond 30.04.2020 to prevent companies from going into insolvency proceedings.

Bank related compliances

  • Debit card holders, who withdraw cash from other bank ATMs, can do it free of charge for the next 3 months.
  • There will not be any minimum balance requirement till 30.06.2020
  • Reduction in bank charges for digital trade transactions for all trade finance consumers.

Commerce related matters

  • Extension of timelines for various compliance and procedures will be given.
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