Govt of India relief for people and businesses hit by Corona virus

Government-Announces-Relief

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Changes to ATM, minimum balance, GST, Income Tax, Companies Act

The Finance Minister, Ms. Nirmala Sitharaman has announced following relief to public and businesses in view of the Covid-19 coronovirus outbreak. The relief is intended to provide relief to common people and to businesses, specially MSME’s and small businesses.

Relief for people and taxpayers

Minimum balance and ATM charges relief for account holders

  • Cash withdrawal from any bank ATM will be free of charge for period upto 30th June 2020. No fee shall be levied by any bank for using ATM’s of any bank for withdrawing cash using debit cards.  Note that this relief does not apply to withdrawal using credit cards.
  • Minimum balance requirement shall be waived and no fee shall be levied even if case customers are unable to maintain minimum balance in their savings accounts.

Income tax relief

  • Final due date for filing income tax returns for the financial year 2018-19 (assessment year 2019-20) which was earlier 31st March 2020 has been extended to 30th June 2020.
  • Delay in TDS payments will now be liable to interest at reduced rate of 9 percent per annum instead of 18 percent per annum.
  • Last date for linking PAN with Aadhaar stands extended to 30th June 2020 instead of 31st March 2020.
  • Due dates for any and all types of notices, replies, responses, orders under income tax has been extended from 31st March 2020 to 30th June 2020.

Relief for small businesses – GST, Companies Act

GSTR due date extended

  • Due date for filing all GST returns for the months of March, April and May and quarterly return for March quarter shall be between 27th June and 30th June for tax payers with annual turnover of upto Rs. 5 crores.  This covers most MSME’s, traders and small businessmen.
  • For other assesses with turnover above Rs. 5 crores, the due date shall be extended by 15 days from the normal due date. E.g. if the earlier due date for filing GSTR3B for month of Mach was 20th April, it shall now be 5th May.
  • GSTR 3B due date for the month of Feb 20202 stands extended to April 7, 2020 for all registered dealers under GST.
  • Due date for filing FORM GSTR-9 (annual return) and GSTR-9C for financial year 2018-19 has been extended from March 31 2020 to June 30, 2020.
  • The government has also extended the due date for opting for composition scheme from March 31 to 30th June 2020.

Relief from IBC for small borrowers

  • Minimum default amount under IBC has been increased from Rs. 1 lakh to Rs. 1 crore. This is to ensure that small businesses that are unable to repay their debt to banks due to hardships are not dragged to court under IBC.
  • Further, the finance minister has said that in case the situation does not normalize by 30th June, 2020, sections 7, 9 and 10 of the IBC may be temporarily suspended to prevent borrowers being prosecuted under IBC. This decision will be taken later based on the then prevailing situation.

Companies Act compliances simplified

  • Moratorium on late fee on all MCA-21 filings from 1st April to 30th Sep 2020.
  • Period between two holding board meetings can be extended by 60 days.
  • Requirement of directors to stay in India for at least 182 days in a year waived for year 2019-20.
  • CARO (Companies Auditors Report Order, 2020) has been made applicable from financial year 2020-21 instead of 2019-20.

FM Sitharaman announces Relief Package

  • Rs. 1.7 lakh crore package for those in “immediate need” to put money in their hands.
  • 5kg wheat/rice per person along with 1 kg pulse per household, in addition to the existing limit under Garib Kalyan Anna Yojana.
  • Rs. 50 lakhs per person health insurance to doctors, nurses, ASHA or government workers, and sanitation.
  • Direct benefit transfer of cash to be given to beneficiaries of schemes like PM-Kisan, MANREGA, Women Jan Dhan Yojana, Ujjwalm Scheme, Self-help group women, Construction workers, and EPF contribution for certain organizations in the organized sector.

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