Tax Updates on 24th March'2020

VidyaSunil & Associates
Founded : Year 2013
Founding Partners : Vidya & Sunil
Web : www.vidyasunilassociates.com
TAX COMPLAINCES,AUDIT, ACCOUNTS & CFO SERVICES

Introduction – VidyaSunil & Associates
• VidyaSunil & Associates is into practice of Tax Compliance, Corporate Law
Compliance, Accounts, Audit, Fund Raising, GST, Start Up Consultancy
established with a objective to provide wide Spectrum of Activities under
One Roof.
We aim to be part of your team & provide value added services in a smooth
and efficient manner while leaving you to focus on developing your business.
We provide a long-term solution that understands your business through
personalized "Solution Based Consulting“

TAX UPDATES IN LIEU OF COVID -19
• From reported sources
close to 100+ countries
have already come out
with various Tax
Restructuring / Tax
updates whatever the
name be it have been
followed in various
countries and from
country to country.

BACKGROUND - SPOTTED AND REPORTED
• Finance Minister Nirmala Sitharaman addressed a press meet on 24 March ,2020 at
the National Media Centre in New Delhi.
• Finance Minister, considering the current situation in the nation on coronavirus
outbreak, briefed the media via Video conferencing. The conference was held
specifically to make some announcements on Statutory and compliance matters as
the financial year comes to an end. FM announced relief measures in areas of
Income tax, GST, Customs & Central Excise, Corporate Affairs, Insolvency &
Bankruptcy Code (IBC), fisheries, Banking sector and Commerce.

TAX RELIEFS – SPOTTED AND REPORTED
• Direct Taxes
• 1. Tax return filing due dates The deadline to file IT returns for FY2018-19 including
revised returns is now extended to 30 June 2020.
• 2. Reduced interest No extension of deadline for delayed deposits of TDS. Interest rate
reduced to 9% per annum (against 12/18% as applicable) on delayed deposits till June
2020.
• 3. Compliance deadlines extended Due date for issue of notice, intimation, appeal,
furnishing of returns and any other documents/compliance by the taxpayer including
investment in savings investment or roll-over capital gains benefit or Wealth Tax Act or
Benami Act or Black Money Act or STT Law or CTT Law or Equalisation Levy where the
time limit expired on 20 March 2020 will be 30 June 2020.
• 4. The deadline for Vivad se Vishwas scheme has been pushed to 30 June 2020 and will not
have to pay 10% interest on the principal amount.

• OTHERS
• 1) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.
• 2) New LIC, Mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible
for the deduction for the FY 2019-20.
• 3) Payment of Premium of old policies of LIC, Mediclaim, PPF, NPS, etc. due upto
31st March can be claimed as deduction even if paid till 30th June.
• 4) Housing loan interest is eligible for deduction on accrual basis, so interest accrued
till 31st March will be eligible for the deduction in FY 2019-20. However
Installments due upto 31st March can be claimed as deduction even if paid till 30th
June.

• OTHERS
• 5.Debit cardholders who withdraw cash from any bank ATM can do it free of
charge for the next three months.
• 6. Spending of CSR funds for Covid-19 would be treated as eligible CSR activity.
The coronavirus outbreak will be treated as a notified disaster, according to an
MCA order.
• 7. There will be no minimum balance requirement fee imposed by banks and bank
charges will be reduced for digital transactions.
• 8. Aadhaar-PAN linking date to be extended from 31st March 2020 to 30th June
2020.

INDIRECT TAXES – SPOTTED AND REPORTED
• Indirect Taxes
• 1. GST return filing due dates extended The last date for filing GST returns for March, April and May
has been extended to 30 June 2020. The previous date for filing of GST returns was 31 March 2020.
• 2. No late fee or penalty Dealers whose turnover is less than Rs 5 crore – No interest or penalty for
the late filing of GST returns. Others – Zero late fee/penalty but 9% per annum interest for filing of
returns.
• 3. Compliance due dates The due date for issue of notice, notification, approval order, sanction order,
filing of appeal, furnishing of return, statements, applications, reports, any other documents, time
limit for any compliance under the GST laws where the time limit is expiring between 20 March 2020
to 29 June 2020 will be extended to 30 June 2020.
• 4. The deadline for composition returns on GST has been also been extended to 30 June 2020.
• 5. Sabka Vishwas Scheme is extended to 30 June 2020.

CORPORATE LAWS – SPOTTED AND REPORTED
• 1. CARO 2020 is postponed by one year and applicable from FY 2020-2021.
• 2. Independence Directors Exempted from attending Board meeting for FY 2019-2020.
• 3. Relaxation for Board meeting The maximum prescribed interval of 120 days between two
Board meetings has been extended by 60 days for next two quarter till September 2020.
• 4. Waiver of additional fees In respect of MCA registry, there’s moratorium issued effective
from 1 April 2020 to 30 September 2020. There would not be any additional filing fees.
• 5. Commencement of business Additional 6 months’ time to file declaration for
commencement of business for newly incorporated companies. Requirement to create
deposit reserve of 20 percent of deposits by April is now extended to 30 June 2020.

CORPORATE LAWS – SPOTTED AND REPORTED
• 6. Investment in Debentures There is a requirement to invest 15 percent of
debentures maturing during a particular year in specified instruments before
30 April 2020. Now the same is extended to 30 June 2020.
• 7. Non-violation If there is a company director who does not comply with
the minimum residency requirement, which currently is 182 days or more,
under section 149 of the companies act it is now being exempted

CUSTOMS – SPOTTED AND REPORTED
• CUSTOMS
*Sabka Vishwaas Scheme for indirect taxes having last date till March 31 has
been extended to June 30,2020. No interest to be levied.
*Customs clearance till June 30 to work 24x7.

Insolvency and Bankruptcy Law – SPOTTED AND REPORTED
• Insolvency and Bankruptcy Code
*Threshold of default is Rs one lakh as of now. From Rs one lakh it is being raised
to Rs one crore to prevent triggering of insolvency proceedings for SMEs.
*If it continues like this beyond April, then sec 7, 9, 10 of the IBC will be
suspended for a period of six months.

COMPANIES FRESH START SCHEME, 2020 (CFSS)
• As expected, MCA has finally announced the Companies Fresh Start Scheme 2020 (CFSS)
giving one time opportunities to defaulting companies to file the pending forms Without
any additional fees and seek immunity from the penalties and prosecutions as provided
under Companies Act, 2013.
• As the name of the scheme suggests, it is a one-time opportunity given to all the defaulting
companies to start afresh. Companies Fresh Start Scheme, 2020 (CFSS) will condone the
delay in filing the documents with Registrar (ROC) in so far as it relates to charging of
additional fees and granting of immunity from the launching of prosecution or proceedings
for imposing a penalty on account of delay associated with certain filings.

• The Scheme is valid between April 1, 2020 to September 30, 2020
• The scheme enables company to file any document as may be required under Companies Act, 2013 which is due
for filing on any given date without any additional fees. Except for few specified forms which are excluded.
Immunity under the CFSS is provided from launch of prosecution or proceedings for imposing penalty shall be
provided only to the extent such prosecution or the proceedings for imposing penalty under the pertain to any
delay associated with the filings of the belated documents.
• Any other consequential proceedings, including any proceeding involving interests of any shareholder or any
other person of the company or its directors or KMP would not be covered by Immunity. Companies filing any
belated document under the scheme may file form CFSS 2020 to avail immunity for such delay after filing of
such belated document but not after the six months of the expiry of the Scheme. There is no fees for filing of
Form CFSS 2020.
•

• Based on declaration and subject to certain limitations, a Certificate of Immunity
will be issued on filing of form CFSS 2020 Companies Fresh Start Scheme,
2020(CFSS) shall not apply to Strike off companies or companies against which
action for final notice is already initiated by ROC.
• Companies that have filed an application for strike off with ROC. Dormant
Companies Vanishing Companies For Forms like Increase in Capital (SH-7), Charge
Related forms (CHG 1, CHG 4, CHG 8 and CHG 9) Defaulting Inactive
Companies, while filing the Form CFSS 2020 can simultaneously either: Apply for
Dormant Status by filing form MSC 1; or Apply for strike off by filing Form STK
2. At the conclusion of Scheme, it is expected that ROC will initiate the action
against defaulting companies which have not filed pending documents.

VidyaSunil & Associates
Cell No. 9739834819 / 9480633382
• Disclaimer
• The information included above is a summary
of recent developments and is not intended to
be advice on any matter.
• VidyaSunil & Associates expressly disclaims
liability to any person in respect of anything
done in reliance of the contents of these
publications.
• Professional advice should be sought before
acting on any of the information contained in it.

“THANKS FOR YOUR TIME”
• VidyaSunil & Associates
• Web : www.vidyasunilassociates.com
• Cell No. : 9739834819 / 9480633382
• Ping us on our WhatsApp Cell No. for Regular Tax Updates

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Tax Updates on 24th March'2020

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