The outbreak of coronavirus or commonly known as Covid-19 has impacted the lives of both, general citizens as well as the trade and businesses. In this situation where lockdown has been declared the business persons were expecting some relief in deadlines for payment of taxes and interests. The Honourable Supreme Court recently ruled on the Force Majeure Clause to save businesses from delay in execution of their contracts and also its financial implications. Looking at the ongoing issue the Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced several Relief Measures Related to Covid-19 Outbreak to measures which were decided by the Government of India amidst the Covid-19 outbreak.
measures are mainly focused on statutory and regulatory compliance matters
which are related to several sectors such as Income Tax, GST, Customs and
Central Excise, Corporate Affairs, IBC or Insolvency or Bankruptcy Code,
Fisheries, Banking Sector and Commerce.
were many persons of different ministries present along with the Finance
Minister like Shri Anurag Singh Thakur-Minister of State and Corporate Affairs,
Shri A.B. Pandey- Finance Secretary, Shri Atanu
Chakraborty- Secretary, Department of Economic Affairs.
The relief measures related to covid-19 outbreak regarding statutory and compliance matters in various sectors are discussed below in this article:
Income Tax Returns
date of filing Income Tax Returns
Aadhar PAN Linking Date
Date for Linking Aadhar card an PAN Card
Vivad se Vishwas scheme (Direct Tax)
additional 10% amount
June , 2020
in the saving instruments or investments for roll over benefit of capital
gains under Income Tax Act,
of Benami Property Transaction Act,
Vivad Se Vishwas law
Approval Order, or Sanction Order or
of Appeal or Furnishing of Return, Statements, Applications
other Documents, and
limit of Completing the Proceedings
the authority, or any taxpayer
March 2020 to 29th June 2020
penalty will be charged for delayed payments of advance tax, regular tax,
self-assessment tax, TDS, TCS, Equalisation Levy, STT, CTT that is made between
20th March, 2020 to 30th June, 2020.
rate of interest has also been reduced at 9% instead of 12% or 18% per annum
i.e. 0.75% per month instead of 1 or 1.5 % per month will be charged for this
period. No late fee or penalty will be charged for delay made in this period.
GST or Indirect Tax
The due dates have been
extended as relief measures related to Covid-19 Outbreak for GST.
- Business with annual turnover of less than five crores can file GSTR-3B, which is due in March, April and May 2020 by last week of June, 2020.
- No interest or late fee and penalty will be charged.
For Other types of GSTR
other types of GSTR having a due date in March, April and May 2020 can file by
last week of June 2020.
will attract a reduced rate of interest @9 % per annum from 15 days after due
date .The current interest rate is fixed
late fees or penalty is to be charged, if complied before till 30th June 2020.
- The Composition scheme’s date is extended until the last week of June 2020.
- The last date for payments for the quarter ending 31st March 2020 and also filing of return for 2019-20 by the composition dealers will be extended till last week of June 2020.
- Date for filing GST annual returns of for the year 2018-2019, the due date on 31st March, 2020 is extended till the last week of June 2020.
- Due date for issue of notice or notification or approval order or sanction order or filing of appeal or furnishing of return or statements or applications or reports or any other documents or time limit for any compliance under the GST laws where the time span will expire between 20th March to 29th June 2020 it shall be extended to 30th June 2020.
- The Payment date under the scheme Sabka Vishwas shall be extended to 30th June 2020. No interest will becharged for this period it is paid by 30th June, 2020.
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As relief measures related to Covid-19 Outbreak specific changes have been made in customs:
- The Custom clearance will be made till 30th June 2020.
- The due date for issue of notice or notification or approval order or sanction order or filing of appeal or furnishing of return or statements or applications or reports or any other documents or time limit for any compliance under Customs Act and other allied Laws where the time span will expire is between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
Relaxation provided for 3 months
of cash for free from ATMs of any other bank for debit card holders for 3
balance fee waived.
charges of digital trade transactions reduced for all trade finance consumers.
the suspension period from 1st April to 30th September
2020 no additional fees shall be charged with respect to any document, return
etc. which is required to be filed in the registration of MCA-21, irrespective
of its due date which will not only reduce the compliance burden, including
financial burden of companies or LLPs but also enable long-standing
non-compliant companies or LLPs to make a ‘fresh start’.
Holding of General Meeting
The Board meeting of
the companies as prescribed in the Companies Act, 2013 of 120 days shall be
extended by a period of 60 days till next two quarters that is 30th
Companies (Auditor’s Report) Order, 2020
To ease the burden of the companies and their auditors the Companies (Auditor’s Report) Order, 2020 shall apply from the financial year 2020-21.
Meeting of Directors as per Companies Act, 2013
to Schedule 4 of the Companies Act, 2013-The Independent Directors must hold at
least one meeting without the attendance of Non-Independent directors and also
the members of the management.
case, the Independent Directors could not hold the meeting for the financial
year 2019-2020 it will not be considered as violation.
of deposit reserve of 20% deposits during the financial year 2020-2021 before
30th April 2020 shall be allowed to comply until 30th
15% debentures during the year in specified instruments may be done before 30th
of the minimum residency period in India by at least one director of the
company for a period of at least 182 days as prescribed under Section 149 of
the Companies Act, 2013 shall not be treated as a violation.
Filing of Declaration of Newly Incorporated Companies
The newly incorporated
companies which are required to file declaration for commencement of business
within six months of its incorporation have been given an additional time of 6
months to file declaration.
Insolvency and Bankruptcy Code (IBC)
case the current situation prevails beyond 30th of April, 2020,
section 7, 9 and 10 of the IBC 2016 might get suspended for a period of 6
months to stop companies at large from being forced into insolvency proceedings
in such force majeure causes of default.
to the rising financial crisis faced by most companies on account of the
large-scale economic distress because of COVID 19, the threshold limit of defaulters has been increased under
section 4 of the IBC 2016 to Rs 1 crore (from the existing limit of Rs 1 lakh).
This will curtail the insolvency proceedings against MSMEs.
Department of Fisheries
As part of relief
measures related to Covid-19 Outbreak for the department of fisheries, the following
announcements are made:
sanitary permits or SIPs for the import of SPF Shrimp Broodstock and other
Agriculture inputs which will expire between 1st March 2020 to 15th
April 2020, has been extended by three months.
in arrival of consignments up to one month to be condoned.
additional booking charges the quarantine cubicles for cancelled consignments
in Aquatic Quarantine Facility (AQF) to be rebooked.
would be provided from 7 days to 3 days in case of verification of documents
and grant of NOC for Quarantine.
Department of Commerce
The Ministry of
Commerce will provide detailed notifications relating to the extension of
timelines for various compliances and procedures with regard to relief measures
on Covid-19 Outbreak.
Government is taking active steps considering the 21
days lockdown starting from today, i.e. 25th March 2020. The
businesses will get a sigh of relief through these announcements. More
announcements are expected in the near future if lockdown continues beyond 21
days period. The Government is trying its best to provide relief measures related
to Covid-19 Outbreak.
Also, Read: Finance Bill 2020 Passed by Lok Sabha.