Finance Minister Announces Major Updates To Boost Indian Economy

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.

Important Updates Regarding GST

Here is the list of the key announcements regarding GST:

a. GST Filing Date extended

The last date to file March, April and May 2020 GST Returns and composition returns will be extended till June 30, 2020.

b. Interest and Penalty

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.

Important Updates regarding Finance

Here is the list of key announcements regarding ATM withdrawals:

a. ATM cash withdrawal exempted from charges

Debit cardholders won’t be charged fees for cash withdrawals from any Bank ATMs for the next three months.

b. No minimum balance

Customers will be exempted from maintaining a minimum bank balance in any bank for the next three months. This is applicable to all banks.

Important Updates Regarding Taxes

Here is a list of important updates regarding Taxes:

a. Deadline for filing Income Tax extended

The deadline for income tax filing for the financial year 2018-19 has been extended to June 30, 2020.

b. Reduced TDS interest rates

There will be a reduction in the interest rate on delayed deposit of TDS at 9%. Earlier it was 18%.

c. Aadhar PAN linking date extended

Aadhaar PAN linking date has been extended to June 30, 2020.

Important Updates Regarding Government Schemes

Here is a list of important updates:

a. Sabka Vishwas Scheme on indirect taxes date extended

Sabka Vishwas Scheme on indirect taxes has received an extension till June 30, 2020. Additionally, no interest will be charged.

b. Dates for Vivad se Vishwaas Scheme Extended

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.

Important Updates for Companies

Here is a list of key announcements for companies:

a. Relaxation in holding mandatory Board Meetings

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.

b. New companies to get extra time for filing declaration

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.

c. MSMEs to get major benefits

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).

d. Customs Clearance to remain open 24/7

The government has made customs clearance an essential service. This will be working 24/7 till June 30, 2020.

Additional Noteworthy News

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.

Conclusion

India can expect considerable growth in the Economy with the implementation of the financial aid announced.