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

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

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. 

 

GST

Join our 1500+ Facebook Group on Portfolio Management! Losing sleep over the market crash? Don't! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free! Did you miss out on the lockdown discount? You can still avail it! Follow instructions in the above link!
  • 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.

MCA

  • 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.
Do share if you found this useful
Share your thoughts on this topic at the  Reddit freefincal_user_forum

Reach your financial goals like a pro! Join our 1600+ Facebook Group on Portfolio Management! You can now reduce fear, doubt and uncertainty while investing for your financial goals! Sign up for our lectures on goal-based portfolio management and join our exclusive Facebook Community. The 1st lecture is free!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site. Follow us on Google News Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps