In the season of nationwide lockdown, when everything is suspend for the time being, compliances are also suffering a suspension kind of. March is the month when a financial year is closing itself and accordingly a series of activities takes place from both compliance viewpoint as well as performance assessment view point.
Like; Books of accounts were to be closed and finalized, planning for tax savings were to be concluded, yearend inventory calculations had to take place, closing reports preparation etc. Further lots of other financial, operational and managerial activities were to wind up and start of new activities in new financial year was expected to take place.
In this context there is a rumor frequently travelling that the financial year has been extended from 31st March to 30th June.
However this a baseless and imaginary thought of someone and Govt. came up with no such pronouncements regarding extension of financial year.
However there are certain relaxations as well as changes in compliance and financial operations norms both. Brief summary of which is given below;
INCOME TAX RELATED
- FY 2018-2019 | AY2019-2020
- ITR last date extended to from 31st March 2020 to 30th June
- Interest on delay deposit of taxes reduced from 12%/18% to9%
- Extension of dates for variouscompliances
- Due date for all notices/orders/appeals/applications/reports/anyother document/any compliance by taxpayers up-to 30th June,2020
- All investments/Saving instruments for tax rebates can be made by 30th June2020 instead of 31st March
- Adhaar-PAN linking date extended to 30th June2020
- Vivad Se Vishwas Scheme extended up-to 30th June 2020, No additional charge of 10% up-to 30th June 2020, earlier disputed tax was to be deposited by 31st March without additional charge of10%.
- March, April and May 2020 month GST returns & composition returns filing date extended up-to 30th June2020.
- Companies with less than 5 Crore Turnover no interest, late fees orpenalty.
- Other companies more than 5 Crore turnover, no Late fee and penalty, only interest at reduced rate of9%
- Date for opting composition scheme extended to 30th June2020.
CUSTOM /CENTRAL EXCISE
- SabkaVishawas scheme (Indirect Taxes) extended from 31st March 2020 to 30th June 2020, no interest will be levied atall.
- Custom clearance till 30th June 2020 will be24*7
- From 1st April till 30th September, 2020, no additional fees for latefilings.
- Holding board meetings within a prescribed period of period of 120 days relaxed with 180 days instead.
- Applicability of CARO 2020 will be from FY 2020-2021 instead of2019-2020
- Noviolation even if for year 2019-2020, if no meeting held with Independent director.
- Fornewlyincorporatedcompanies,declaration forcommencementofbusinessin form20A canbe filed with additional time of 6months.
- If company’s director do not comply with minimum mandatory period to be stayed in India u/s 149 of Companies act, it will not be treated asviolation.
INSOLVENCY AND BANKCRUPTCY CODE, 2016
- Threshold of default raised from Rs. 1 Lacs to 1Cores
- If situation of COVID-90 continues like this, even after 30th April, 2020, suspension of section 7, 9 and 10 of IBC for next 6months may happen.
BANKS RELATED (DFS RELATED)
- EMI in respect of all term loans, cash credit loans revolving credit etc deferred till 30th June 2020. Any EMI falling between period 01st March to 01ST June will be deferred and repayment period will be extended accordingly.
- Debit card holders can withdraw cash from any bank ATM- No charge up-to next 3months
- No minimum balance requirement fees for bankaccounts
- Bank charges reduced for digitally transactions related to all tradefinance.