Finance Minister Nirmala Sitharaman on Tuesday announced several relaxations in the view of the lockdown/curfew announced to combat the spread of the coronavirus. The Finance Minister stated that the last date for filling delayed income tax return (ITR) for the financial year 2018-19 has been extended till June 30, 2020 from March 31 now. Likewise, the interest rate for the delayed payment of interest has been reduced to 9% from 12% earlier.
Meanwhile, the government has also decided to reduce the interest on delay in deposit of TDS. It will now be reduced to 9% from 18% and all the compliance for the tax payment has now been extended till June 30, 2020. She also announced that for the companies with less than Rs 5 crore turnover, no interest, penalty and late fee to be charged on late GST return filing.
“For newly incorporated companies there is a requirement to file declaration for the commencement of business within 6 months of incorporation. Now we are giving them an additional time of 6 more months,” she added.
Similarly, the debit card holders who withdraw cash from any bank’s ATM can do it free of charge for the next 3 months. In a major announcement, she also said that “There shall not be any minimum balance requirement fee (in bank accounts).”
She further said that “Work is going on and we are very close to coming up with an economic package that will be announced sooner rather than later.” Meanwhile, MoS Finance Anurag Thakur stated that “Insolvency & Bankruptcy Code default limit has been increased from Rs 1 lakh to Rs 1 crore.”