Daijiworld Media Network - New Delhi (SHP)
New Delhi, Mar 24: Finance minister, Nirmala Sitharaman addressed economic packages via video conference amid coronavirus pandemic.
A comprehensive plan announced to brace the economy from a devastating blow. "We have come up with a comprehensive plan about statutory and regulatory compliance matters," said finance minister Nirmala Sitharaman during a media presser on Tuesday.
"The lockdown has been done to flatten that curve of coronavirus’ spread. Therefore, I must appreciate you all for joining us today. We are close to coming up with an economic package, which will be announced soon." she added.
The last date to file IT returns was extended to June 30 from March 31 for the financial year 2018-2019. Announcements will be made on income tax, customs, the Insolvency and Bankruptcy Code (IBC)-related matters, bank-related compliances, fisheries, among other things. For the delayed payments, the interest rate is reduced from 12 per cent to 9 per cent.
The finance minister announced on Tuesday that the Aadhaar-PAN linking date has been extended to June 30 from what was March 31. The finance minister also said that the Interest rate on delayed deposit of TDS has been reduced. She said, "No extra 10 per cent interest will be charged between now and 30 June."
No interest, no penalty or late fee charged on companies with turnover lesser than Rs 5 crore. The interest rate for such companies reduced to 9 per cent. The finance minister stressed that only interest will be applicable on these firms and no penalties or late fee.
Payment under 'Sabka Vishwas' scheme, extended to June 30.
Customs clearance will operate till June 30 and will operate 24/7, serving major relief to the importers and exporters.
Mandatory requirement of holding board meetings relaxed for 60 days. If no board meeting is held for 2019-2020, it will not be considered a violation, said the finance ministry.
The finance minister Nirmala Sitharaman also said that the applicability of The Companies Auditors’ Report Order 2020, which was supposed to have come into force in 2019-20, has been shifted to 2020-21.
Newly incorporated firms will be provided an extra six months to file declaration. Generally, new firms are required to make a declaration within six months of their commencement.
Nirmala Sitharaman also said that If there was a company director who does not comply with the minimum residency requirement, it shall "not be treated as a violation."
Nirmala Sitharaman announced an extension of default threshold to Rs 1 crore from the current Rs 1 lac to prevent insolvency proceedings against MSMEs.
Possible suspension of Section 7, 9 and 10 of Insolvency and Bankruptcy Code (IBC) if the current crisis extends beyond six months.
Finance minister stressed that one-month delay will be condoned in the arrival of the consignment of fisheries. Import permits for fisheries expiring in April have been extended by three months.
In a relief to the public, the finance minister announced that debit cardholders who withdraw cash from any bank ATM can do it free of charge, from any other bank’s ATM, for the next three months. Also there will be no minimum balance requirement fee. Another announcement involved reduction of bank charges for digital trade and transactions.
Concluding the conference, Nirmala Sitharaman reiterated that an economic package will be announced soon.
Further, the FM said, "We are closely monitoring the situation. SEBI has come up with guidelines and stated its position on the recent volatility. We are monitoring the stock market."
In the end she clarified that banks not imposing the minimum balance requirement fee is for a three-month period, at least for now.