Due Date Extensions for Income Tax, GST, MCA; Thresholds Changed for Insolvency/Bankruptcy

IMPORTANT UPDATE FOR COVID-19: DUE DATE EXTENSIONS ANNOUNCED BY GOVERNMENT OF INDIA [DESIGNER: Please ensure that this announcement shows on 1 single line]

The whole world is struggling under the weight of the Coronavirus pandemic. STAY SAFE, STAY INDOORS.

On account of the shutdown, the Government has extended the due dates for various compliance-related activities.

If any of the below are applicable to you, please go through this article very carefully.

INCOME TAX: DUE DATES EXTENDED

• Last date for filing IT returns (FY2018-19) extended to 30^th June 2020
  • Delayed deposit of TDS will attract reduced interest of 9% (down from 18%)
  • Fine on delayed income tax payment to be reduced from 12% to 9%
• Last date for Aadhaar PAN linking extended to 30^th June 2020
• Vivad Se Vishwas Scheme extended to 30^th June 2020; no additional 10% charge after 31^st March 2020
• Due dates extended to 30^th June 2020 for all the following wherever time limit expired on 20^th March 2020:
  • Issue of notice, intimation, appeal
  • Furnishing of returns, reports and any other documents/compliance by taxpayers, including those related to:
    • Investments
    • Roll-over capital gains benefit
    • Wealth Tax Act
    • Benami Act
    • Black Money Act
    • STT Law
    • CTT Law
    • Equalisation Levy

GST: DUE DATES EXTENDED

• Last date for filing March, April, May 2020 GST returns and composition returns extended to 30^th June 2020
• Due date for opting for composition scheme extended to 30^th June 2020
• Sabka Vishwas scheme extended to 30^th June 2020
  • No interest payable for late payment
• Companies with < Rs. 5 crore turnover: Zero interest/late fee/penalty
• Companies with > Rs. 5 crore turnover:
  • Zero late fee/penalty
  • Interest on late payment reduced to 9%

During the lockdown period, customs clearance until 30^th June 2020 will operate 24 x 7.

MCA: DUE DATES EXTENDED

• Moratorium period: 1^st April 2020 to 30^th June 2020
• No fines for late filing
• No requirement for holding board meeting for 60 days
  • For FY2019-20, if independent Director have not conducted even one meeting, it will not be considered a violation
• Companies Auditors Report Order (CARO) 2020 to be applicable from FY2020-21 instead of FY2019-20
• For newly incorporated companies, compliance deadline to file Commencement of Business extended from 6 months to 12 months
• If company Directors do not comply with minimum residence requirement (182 days or more), it will not be treated as a violation
• Deadline to invest 15% of debentures extended from 30th April 2020 to 30^th June 2020

INSOLVENCY & BANKRUPTCY

• Threshold for default classification increased from Rs.1 lakh to Rs. 1 crore with immediate effect

Post 30^th April 2020, if the COVID-19 situation continues, various provisions of IBC Act (Insolvency and Bankruptcy Code, 2016) would be suspended to protect businesses.

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