Nirmala Sitharaman Speech Updates: Government Defers Tax Filing, Company Law Compliance Deadlines 
Finance Minister Nirmala Sitharaman. (Photo: PTI)

Nirmala Sitharaman Speech Updates: Government Defers Tax Filing, Company Law Compliance Deadlines 

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Watch | FM Sitharaman Extends Tax, Compliance Deadlines & More, Amid Coronavirus Outbreak

Key Takeaways

  • Income tax filing and GST returns deadline extended to June 30.
  • Due date to complete pending payments of central and excise duties extended to June 30.
  • Deadline for firms to invest 15 percent debt maturing in a year in specified instruments extended to June 30 from April 30.
  • Minimum balance charges waived; no fees for using other banks' ATMs
  • Threshold for invoking insolvency raised to Rs 1 crore from Rs 1 lakh
  • RBI, SEBI and Finance Ministry monitoring markets carefully
Every attention is being given to the economy. The prime minister himself is closely watching the situation. A multi layered - including MPs, experts, industry participants etc. - task force is working and analysing all suggestions and developments. An economic package is being worked out. Sooner, we will come out with that.
Nirmala Sitharaman, Finance Minister

FM Monitoring Stock Markets

  • All regulators, RBI and Finance Ministry are working together and monitoring the volatility in the stock markets
  • SEBI has come out with norms to contain short-term volatility
  • Consciously monitoring stock markets three times a day

Minimum Blance Requirement, ATM Transaction Charges For Different Banks Waived

  • For the next three months, debit card holders can withdraw cash from any other bank’s ATM without charge.
  • Complete waiver of minimum balance requirement of bank accounts. No penalty will be charged for breaching the minimum balance.
  • Bank charges are being reduced for digital transactions.

These changes and provisions have been made keeping in mind that citizens need to, and should, stay indoors unless it is absolutely necessary to venture out, the Finance Ministry said.

Announcements For Fisheries Sector

All sanitary export permits which were to expire between April 1 and April 15, are being extended by three more months, Sitharaman said.

The delay of arrival of assignments up to one month, will be overlooked.

Rebooking of quarantined cubicles in Chennai’s aquarium, for cancelled assignments will not lead to additional booking charges.

Changes Under IBC Code

In order to prevent triggering of IBC proceedings for medium and small enterprises, the default threshold limit is being increased to Rs 1 crore from the previous Rs 1 lakh, Sitharaman said.

The ministry may consider suspending Section 7 , Section 9 and Section 10 of the IBC, for a period of 6 months, if the situation continues in a similar manner.

On Rules Under Corporate Affairs

As most people work from home during the lockdown period, companies and board that do not hold even one meeting with their independent directors will not be held under violation of rules, Sitharaman said.

Other highlights:

  • MCA 21 registry, moratorium issued from April 1 to Sep. 30, 2020
  • There shall not be any additional fee for late filing
  • Relaxing norms for holding board meeting to 60 days, this relaxation is till next two quarters
  • For newly incorporated companies, requirement for filing declaration for commencement of business is 6 months, that is being extended by another 6 months
  • A director of a company who hasn’t stayed in India for 182 days or more, will not be held under violation under the Companies Act.
  • Deadline to create a deposit reserve of 20 percent till April 30 has been moved to June 30.
  • Deadline to invest 15 percent debentures maturing in a year in specified instruments - a mandatory move - has been moved from April 30 to June 30.
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