COVID 19 meeting: Key Highlights from Finance Minister’s announcements related to Companies Act , IBC and Banking law
Tax Related Announcements
The last date for filing belated income tax return (ITR) for the FY 2018-19 has been extended from March 31 to June 30, 2020.
The deadline for filing returns of goods and services tax (GST) for March, April and May this year has also been extended till June 30. The government has also extended the last date for linking PAN card with Aadhaar from March 31 to June 30.
Relaxation related to Companies Act, 2013 1. Moratorium on MCA21
Moratorium has being issued from Apr 1 2020 till Sep 30,2020 during this period, there shall not be any additional fee for late filing.
Relaxation on Board meeting
Relaxation has been given in respect of holding of holding boarding meeting till 60 days till the next 2 Quarters. There is a mandatory requirement of holding board meeting
For the year 2019-20 if the Independent Director fails to attend even if one meeting, the same shall not be seen as violation of provisions of Companies Act, 2013
Applicability of CARO-20
Applicability of CARO-20 which was supposed to be effective from 2019-20 has been shifted to Year 2020-21
Commencement of business
Additional time of 6 more months given to newly incorporated companies for declaration of commencement of business in e-form 20A. Now, it can be filed up to 1 year from the date of incorporation of company.
Relaxation for residency requirement for Indian Directors
A Company director who doesn’t comply with minimum residency requirement of 182 days or more in India u/s 149 of Companies Act, 2013 shall not be considered as violation.
Relaxation on Deposits Reserve
There is a requirement of creation of deposit reserve of 20% of the deposits maturing during the year 2020-21 before April 30, 2020 now this requirement has been allowed to be complied with by June 20, 2020.
15% of Debenture maturing during a year in a specified instrument which is a mandatory requirement that deadline has been shifted from April, 2020 to Jun, 2020.
Relaxation related to Insolvency & Bankruptcy Code, 2016 1. Raising of threshold for default value from Rs .1 lakh to Rs .1 cr.
The threshold for default has been raised from Rs. 1 lakh to Rs. 1 cr to prevent triggering of insolvency proceeding against MSMEs. This would be implemented straight away.
Govt. may consider Suspension of Section 7, 9 & 10 for 6 months if situation continues
The Govt. may consider whole suspension of Section 7, 9, & 10 of the Insolvency and Bankruptcy Code, 2016 for 6 months if situation continues till Apr, 2020.
Relaxation related to Banking 1. No fee on withdrawal from debit cards
Debit card holders to withdraws cash for free without any additional charges from any bank for next 3 months .
Waiver of minimum balance charges
There will be a complete waiver of minimum balance requirement fee by banks.
Reduction of bank charges for digital trade transactions:
There will be reduction of bank charges for digital trade transactions for all trade finance consumers.