Relaxation By Government Under Various Laws- Due to COVID -19.

The Government Has Given Various Relaxations For Making Compliance In Various Laws. Which Are Bifurcated As Follows:-

UNDER INCOME TAX

Government has provided following relaxation under the Income Tax to all type of assesses

1. Due date of linking Aadhar and PAN is extended till 30th June 2020 form 31st March 2020

2. The dates for making donation & payments under section 80G, 80C & 80D under the Income Tax Act, 1961 for eligibility as deduction in FY 2019-20 has been extended to 30th June 2020 form 31st March 2020

3. The due date for filling of Income Tax return of FY 2018-19 is extended to 30th June 2020 form 31st March 2020

4. The due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.

5. The rate of payment of TDS has been cut off by 25% for contacts, professional fee, commission, dividend, brokerage etc.

6. All delayed payments of advance tax, self-assessment tax, TDS, TCS, equalization levy, STT, CTT made between 20/03/2020 and 30/06/2020 will be charges at reduced interest rate i.e., 9% p.a. instead of 12% p.a.

7. The due date for issue of notice, intimation, order, investment in tax saving instruments, investments for rollover benefit of capital gains under Income Tax has been extended to 30/06/2020.

8. The government has given relaxation of filling TDS return of March, 2020 quarter to 30th June 2020 from 30th April 2020 without any penalty.

9. “The Period of ‘Vivad se Vishwas Scheme’ for making payment without an additional amount will be extended to 31st December 2020”

10. “Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under 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 the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.”

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UNDER GOODS AND SERVICE TAX ACT (GST)

The government has given following relaxations under the goods and service tax act (GST) to the stakeholder due to COVID-19;

1. The deadline to file February, March, April, and May month GST Return has also been extended to 30th June 2020.

2. Fin Min also announced that the companies with less than Rs 5 Cr turnover, will not have to pay interest, late fee, or penalty, however, for bigger companies, no late fee and penalty will be charged but the interest will be levied at a reduced rate of 9 per cent.

3. The due date of filling the Annual return of GST for FY 2018-19 is extended to 30th June 2020 from 31st March 2020

4. Due date of filling CMP-08 for composition taxpayer has been extended to 30th June 2020 form 18th April 2020.

5. The due date for opting into composition scheme has been extended to 30/06/2020 from 31/03/2020

6. The various time limits has been extended to 30th June 2020 for reply to Notice issued by the government and for filling of appeal by the assesses falls between 20/03/2020 to 29/06/2020.

UNDER THE COMPANIES ACT, 2013 TO COMPANIES, LLP’S (Falls under the Ministry of Corporate Affairs)

1. Considering the need to take precautionary steps to overcome the outbreak of the coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. Such meetings may till 30th June, 2020 be held through video conferencing or other audio visual means by duly ensuring compliance of rule 3 of the said rules.

2. No additional fee shall be charged for late filing during a moratorium period (01/04/2020 to 30/09/2020) in respect of any document, return, statement etc required to be filed in MCA system irrespective of its due date

3. Additional time of 6 more months given to newly incorporated companies for declaration of commencement of business in e-form 20A. Now, it can be filed up to 1 year from the date of incorporation of company

4. Applicability of CARO-20 which was supposed to be effective from FY 2019-20 has been shifted to FY 2020-21

5. The mandatory requirement of holding Board meetings shall be extended by a period of 60 days till next 2 quarters i.e., till 30th September 2020

6. A company director who does not comply with minimum residency requirement of 182 days or more in India shall not be considered as violation

7. Independent Directors (lDs) are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

8. SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 31st May 2020, additional 15 days beyond 31st May 2020 would be allowed.

9. Names expiring any day between from 15th March 2020 to 31st May would be extended by 20 days beyond 31st May 2020 (applicable to both Companies and LLP).

10. FM also said that direct listing of securities by the public companies can be done in permitted foreign jurisdictions. Separately she said that private companies which list non-convertible debentures (NCDs) on the stock exchanges will not to be considered as listed companies.

UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016 (IBC)

1. No fresh cases or proceeding will be initiated under this code

2. Criteria for application before NCLT under this code has been increased to 1 crore form 1 lakh

3. Debts due to COVID-19 situation are out of the defaults under IBC

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OTHER ANNOUNCEMENTS UNDER THE VARIOUS GENERAL LAWS WHICH AFFECTS THE COMMAN MAN

1. FM Sitharaman announced that there will be no penalty for not maintaining the minimum balance amount in the bank accounts.

2. FM has waived off extra charges on using other bank’s ATMs, giving people the facility to use nearby ATMs without paying any extra charge.

3. The government has announced MSME loan scheme of Rs. 3 lacs Crore to the MSME sector who have already taken loans on a reduced rate of interest @ 9.5% p.a. with one year moratorium repayable within four year. The loans will be given 20% to the current debt owns to the banks and financial institutions.

4. Due Date for filing Employee Provident Fund (EPF) electronic challan cum return for the month of March is extended to 15/05/2020 from 15/04/2020

5. Statutory PF Contribution by Employer and employee has been reduced to 10% from 12% for May, Jun, Jul 2020.