Fincash » Coronavirus- A Guide to Investors » Major Updates by Finance Minister
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On March 24, 2020, the stock markets started on a good note with Sensex and Nifty elevating close to 5%. However, this was short-lived as sellers overloaded the Market pushing indices down again.
The union finance minister, Nirmala Sitharaman addressed the nation regarding various financial announcements on the same day, March 24, 2020. She announced some major updates to help the country deal with the current financial situation.
Here is the list of the key announcements regarding GST:
The last date to file March, April and May 2020 GST Returns and composition returns will be extended till June 30, 2020.
The companies with turnovers of less than Rs. 5 crores will not be charged any interest or penalty. Companies with a turnover of more than Rs. 5crores will be charged only 9% interest.
Here is the list of key announcements regarding ATM withdrawals:
Debit cardholders won’t be charged fees for cash withdrawals from any Bank ATMs for the next three months.
Customers will be exempted from maintaining a minimum bank balance in any bank for the next three months. This is applicable to all banks.
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Here is a list of important updates regarding Taxes:
The deadline for income tax filing for the financial year 2018-19 has been extended to June 30, 2020.
There will be a reduction in the interest rate on delayed deposit of TDS at 9%. Earlier it was 18%.
Aadhaar PAN linking date has been extended to June 30, 2020.
Here is a list of important updates:
Sabka Vishwas Scheme on indirect taxes has received an extension till June 30, 2020. Additionally, no interest will be charged.
Vivad se Vishwas Scheme (settling disputes for indirect taxes) is extended till June 30, 2020. No additional charges of 10% will be levied till June 30, 2020.
Here is a list of key announcements for companies:
Companies will get the benefit of relaxation in the mandatory requirement of holding board meetings by 60 days. This relaxation will be applicable for the next two quarters.
New companies will get an additional 6 months to file declaration. Usually, the companies are to file a declaration within 6 months of commencement of business.
The government has decided to raise the Default threshold under Insolvency and Bankruptcy Code (IBC) from Rs. 1 Lakh to Rs. 1 crore to stop companies from being forced into insolvency proceedings. This will majorly benefit the Micro, Small & Medium Enterprises (MSMEs).
The government has made customs clearance an essential service. This will be working 24/7 till June 30, 2020.
On March 24, 2020, FM Nirmala Sitharaman mentioned that the government is ‘readying an economic package that will be announced soon” amid the Corona Virus lockdown.
India can expect considerable growth in the Economy with the implementation of the financial aid announced.