The last date for the income tax return for the financial year 18-19 is extended to 30th June 2020 as the country is under lockdown to stop the spread of the Covid-19 virus. Addressing the media through video conference, Sitharam said that delayed payments interest rate has been reduced from 12 per cent to 9 per cent. "On late filing of GST returns, no late fee, penalty or interest will be charged for companies with turnover of up to Rs 5 crore," she said. Further adding details, she said for the companies with more than Rs 5 crore turnover, no late fee and penalty will be charged on GST return filed by 15 days.
The minister said 'Sab ka Vishwas' indirect tax dispute redressal scheme has also been extended to June 30 and no interest on payment made till June 30 will be charged. Additionally, the government relaxed company provisions including that of mandatory holding of board meeting and filing of return by newly incorporated companies.
The Finance Minister further said an economic package to help through the coronavirus lockdown will be announced very soon.
To help small companies 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. This raising of the threshold will help small and medium enterprises, Finance Minister Nirmala Sitharaman said.
Also, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for six months if the current economic situation continues beyond April, she said, adding this would help companies being forced into insolvency on default of loans.