The last date for filing Income Tax Returns (ITR) has been extended to June 30
The deadline for the income tax return for the financial year 18-19 has been extended to 30th June 2020. Importantly, the delayed payments interest rate has been cut down from 12 percent to 9 percent, announced by Union Finance Minister Nirmala Sitharaman on Tuesday.
The deadline for the income tax return for the financial year 18-19 has been extended to 30th June 2020 from the existing last date of March 31, 2020, as our country is under internment time to stop the spread of the deadly viral infection caused by Covid-19 virus. Additionally, the interest rate on delayed payment of Income Tax returns has also been reduced to 9 percent from 12 percent.
Addressing the media through video conference, Nirmala Sitharam said: “On the late filing of GST returns, no late fee, penalty or interest will be charged for companies with turnover of up to Rs 5 crore,”. On adding details, she said there is no late fee and penalty will be charged on GST return filed by 15 days for the companies with over Rs 5 crore turnover.
The minister said ‘Sab ka Vishwas’ indirect tax dispute redressal scheme has also been extended to June 30 and no 10 percent interest on the principal amount will be charged on payment which is made till June 30. Furthermore, the government relaxed company provender including that of mandatory holding of filing of return and board meeting by newly incorporated companies.
The Finance Minister Nirmala Sitharam further said there will an announcement soon on the economic package to help through the coronavirus lockdown. To help small companies and medium enterprises facing the threat of defaults due to coronavirus-related lockdown, the government raised the threshold that would trigger insolvency proceedings to Rs 1 crore from current Rs 1 lakh.
Also, the government has announced waiving off on minimum balance maintenance fee to be charged by banks and ATM withdrawal charges for using ATMs of another bank. “Debit cardholders who withdraw cash from any other bank ATM can do it free of charge for the next three months, no minimum balance maintenance fee will be charged by the banks,” Ms Sitharaman said.
In addition, if the current economic situation continues beyond April, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for next six months, she said, adding this would help small and medium companies being forced into insolvency on default of loans.
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