Key highlight of FM/PM speech

Assuring citizens that a financial relief plan is underway for those effected by coronavirus disruption, the finance ministry has come up with relief around statutory and regulatory compliance as the financial year comes to an end.

Announcement:

No fees on using other banks ATMs and minimum balanced charge for different banks have also been waived:

Impact:

This move has been made keeping in mind the citizens should stay indoors unless it is absolutely necessary.

Bank charges are also being reduced for digital transactions.

Threshold for invoking  insolvency raised to Rs. 1 crore from Rs. 1 lakhs.

Impact:

A major booster for medium and small enterprises, as they are more vulnerable to the ongoing Covid-19 crisis. This move will definitely help SME’s sail through the tough times.

GST returns and Income tax filing returns date extended to June 30th

Impact:

Late fee or penalty will not be charged to companies with a turnover of less than Rs. 5 crore. Those with a turnover of more than Rs. 5 crore, will pay reduced interest rate of 9 percent.

Interest rate on delayed payments of income tax for financial year 2018-19 has been reduced to to 9 percent from 12 percent. This will help reduce the stress on company’s cash flows.

Vivad Se Vishwas scheme has also been extended to June 30th. This scheme aims at dispute resolution in context of pending income tax litigation in order to reduce pending litigations, generate revenue for government and benefit the tax payers.

Custom & Excise: Sabka Vishwas Scheme Date Extended to June 30:

Impact:

During lockdown period customs will do their duty 24*7. Pending payments due date of central and excise duties have been extended to Jun 30th. No late fee or interest will be charged. This is a further boost to encourage exports for domestic companies.

Corporate affairs rules:

As most personnel will be working from home during the lock down period, companies and board that do not hold even one meeting with their independent directors will not be held under violation of rules.

PM Modi Announcement:

Modi announced that government has provided ₹15,000 crore for strengthening medical infrastructure and treatment of coronavirus infected patients.

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