Indian Govt Extends Deadline for Filing I-T Return, GST Till 30th June, Makes ATM Withdrawals Free for Next 3 Months

The Indian government on Tuesday extended the deadline till 30 June 2020, for filing income tax returns (ITR) for financial year 2018-19 in a bid to provide relief amid the coronavirus (COVID19) crisis. The last date for filing goods and services tax (GST) for March, April and May 2020 is also extended till June end. While waiving the fee on minimum balance, bank customers are allowed to withdraw money from any bank's automated teller machine (ATM) over next three months.

Addressing the media through video conferencing, finance minister Nirmala Sitharaman also said that the government has reduced the interest rate on delayed deposit of tax deduction at source (TDS) to 9% from 18%.

She says, "For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, tax collected at source (TCS), equalization levy, securities transaction tax (STT), commodities transaction tax (CTT) made between 20th March and 30 June 2020, reduced interest rate at 9% instead of 12 % or 18 % per annum, or 0.75% per month instead of 1% to 1.5% per month will be charged for this period. No late fee or penalty shall be charged for delay relating to this period."

Providing a relief to bank customers, the FM says, debit card holders who withdraw cash from any bank's ATM can do it free of charge for the next three months. Waiver of the minimum balance fee charged by banks is waived while bank charges for digital trade transactions for all trade finance consumers are being reduced, Ms Sitharaman says.

The government has also extended the deadline for linking of Aadhaar and permanent account number (PAN) till 30th June 30.

On GST, the minister says, "Last date for filing GSTR-3B in March, April and May 2020 will be extended till the last week of 30 June 2020 for those having aggregate annual turnover of less than Rs5 crore. No interest, late fee and penalty will be charged."

The mandatory requirement of holding meetings of the company board within prescribed interval of 120 days as provided in the Companies Act 2013, is being extended by 60 days till next two quarters or till 30th September, the finance minister says.

To ease burden on companies and auditors, Ms Sitharaman says, the applicability of Companies (Auditor's Report) Order, 2020 would be made applicable from financial year 2020-2021 instead of from 2019-2020 notified earlier.

Due to the emerging financial distress faced by most companies due to large-scale economic distress caused by COVID 19, the government has decided to raise the threshold of default under section 4 of the Insolvency and Bankruptcy Code (IBC) 2016 to Rs1 crore from the existing threshold of Rs1 lakh.

"This will by and large prevent triggering of insolvency proceedings against micro, small and medium enterprises (MSMEs). If the current situation continues beyond 30 April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for six months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default," the finance minister added.

The government has also provided big relief to the corporate sectors on compliance related issues particularly related to incorporation of businesses and qualifications of directors.

As per announcements made by the finance minister, a company has now been given six more months to file declaration of commencement of business. At present such declaration has to be made within six months from in corporation.

Directors of Indian registered companies have also been freedom from compliant with residency rules that mandates them to be in India for a minimum period of 182 days.

"Under Section 149 of the Companies Act., non compliance of this rule was treated as a violation. Now, it shall not be treated as a violation," the finance minister said.

The government has also decided to give more flexibility to companies over the n eed to create a deposit reserve from 20% of the deposits maturing in FY2021 by 30 April this year. This requirement can now be met by 30 June 2020.

Also, companies have been given time till June end to invest 15% debentures maturing during a year in specified instruments. The date of compl iance for this earlier was 30th April.

The relief comes amidst the whole of the country coming to a standstill amid the rising number of coronavirus cases and lockdown across states.

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    COMMENTS

    deepak.narain

    2 weeks ago

    It is all good. Government is aware of its responsibility in the present moment of crisis.

    bajaj3

    2 weeks ago

    Is there any clarification if PPF payment is extended beyond 31st March 2020.
    Because of curfew, I cannot go to the bank to deposit money in my PPF account.

    COVID-19: All checkpoints at air, sea, land, rail, river ports shut
    All integrated check posts (ICPs) at all airports, seaports, land ports, rail ports, and river ports are closed down to contain the spread COVID-19 outbreak in India.
     
    "In continuation of restrictions and advisories the undersigned is directed to covey the orders of Central government to stop all incoming passenger traffic on all 107 Immigration Check Posts which includes all Airport ICPs, all seaport ICPs, all land port ICPs, all rail port ICPs and all river port ICPs in view of the spread of COVID-10," read a government memorandum issued by the Ministry of Home Affairs.
     
    However it exempts vehicles or trains carrying for trade or essential goods and supplier, from this stringent prohibition. Their crew, drivers, helpers and cleaners will also be exempted subject to their screening by medical staff.
     
    Earlier, 30 states and union territories announced complete lockdown covering as much as 548 districts on Monday. The unprecedented decision was taken in wake of the outbreak of the deadly coronavirus.
     
    The total number of confirmed COVID-19 cases in India stands at 415, according to the Indian Council of Medical Research (ICMR). Nine people have succumbed to the virus till now.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Building Life for the Dispossessed: Brick-by-Brick
    Sitting in the shade of the portia tree, I wiped the sweat off my brow, as I watched my husband and his gang of friends do something that did not come very naturally to them – manual labour. 
     
    Three of them had formed a relay chain, and were passing bricks. One of them was arranging the bricks on top of a half-built wall, while others were busy grouting it with red clay, the 40-degree sun notwithstanding, and water-breaks aplenty. Working alongside them, were the future owners of the house – Hirabai and Haribhau. They were mildly amused at the city folk in their white hard hats, but also there was a flicker of something else in Hira and Hari’s eyes – hope.
     
    Life in a tiny hamlet, off Chaphewadi, Karjat, is not easy. The inhabitants dream of things we city dwellers take for granted. Hirabai has to walk over eight km each day to fetch potable water for her family. Haribhau has to figure out how to keep his family fed during the lean months. They have a small patch of land, that they till and sow rice in. But that happens once a year. The monsoon is their best friend, and unseasonal rains, (the kind that damages crops) their worst enemy. 
     
    They and their neighbours lead a life most extraordinary – as it seems to ivory-tower born-and-bred people like me, at least.
     
    The families raise their first-born daughter as a “water girl” – her entire life is devoted to the practice of balancing heavy pots on her head, and fetching water from a borewell miles away. “Water girls” are sought after, with many families seeking their hand in marriage for their eligible sons. The reason? So that the newly minted mothers-in-law can pass on those duties. Many of the children do go to pre-primary schools as they are accessible. Fourth grade onwards, only the brave send their boys to schools that are over six km away. Education comes to a jarring halt for the girls. 
     
     
    I have always questioned why farmers don’t educate their daughters, blaming it on our history of gender discrimination. For the first time, I wondered if I would have allowed my pre-teen daughters to wander through the wilderness to reach school – to gain an education that did not guarantee a job. There are no buses (I assume) since there were no bus stops. There were no tempo-rickshaws. No tractors. For all practical purposes, their hamlet was disconnected from what we call the civilised world. Don’t forget, Mumbai, a megapolis, is a mere 4 hours away.
     
    It was evident to me that Haribhau and Hirabai needed help. Their communities need help. While the government is offering subsidies on rice and lentils, there is so much more we can do! 
     
    We were lucky enough to have philanthropist friends who took us along. They had teamed up with Habitat for Humanity – a grassroots level non-profit organisation with a global footprint. Habitat for Humanity assists low-income families in building houses and sanitation units. They welcome volunteers. For city-dwellers, it is an experience of a lifetime.
     
     
    I am grateful for friends who carry us forward with them, and thankful to organisations such as Habitat for Humanity, who allow us to play a role in bringing about a change in our country’s future.
     
    Habitat for Humanity follows three programs in India: affordable housing for the marginalised sections of our country, sanitation and disaster response. They have a vibrant volunteer program. Thousands of people sign up to volunteer as part of a corporate team or individually. It is easy to sign up, you just have to log on to habitatindia.org/volunteering-program/
     
    The team hand holds you through the task at hand, lunch and refreshments are served on site. The HfH team has trained local volunteers to cater for the build teams, thus generating more jobs locally. We chose to stay overnight in a hotel of our choice, and were back with a smile for the second day of constructing.
     
     
    I am glad I took my five year old son along to observe. I was worried it would be hot and dusty. It was! But my son thrived! He and his friends were happy to rake the mud with sticks, collect pebbles and twigs, and “build” their own miniature house. He noticed how spartan village life can be, and came away wiser from it. He asked a dozen questions, and came up with just as many solutions – from attaching pipes to lakes, to putting tubs on roofs to collect water, to adding solar panels on tractors. He recalled all those instructions incessantly given to him at home on why he shouldn’t waste water, and confessed that he finally understood. 
     
     
    And as for us adults? The weekend ended with us weary in body, but healed in the mind. Each brick laid down managed to restore a little bit of our soul.
     
    And each brush stroke was a like a therapeutic salve. My group of friends will definitely jump at an opportunity like this again, and are already discussing when to “build” next.
     
    (Ex-CEO at Ariston Capital Services Pvt Ltd. Currently, a Stay At Home Mum.)
     
     
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    COMMENTS

    m.prabhu.shankar

    1 week ago

    Excellent

    Ramesh Popat

    2 weeks ago

    Excellent!

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