MORE OF BOOK-KEEPING THAN SOPS

about 6 months ago
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The much anticipated Presser from the FM was more about compliance and not any stimulus or sops. Today, when we are at the threshold of a crisis exploding, what we get is book-keeping announcements! These could have been easily announced along with the economic sops.

What we needed were monetary sops, reduction in taxes and other form of stimulus which will get more cash in the hands of the people. And what we get is these set of new ‘relaxations’ which does not really affect the man on the street, majority of us who work and earn salaries. And what about those in the informal sectors?

But yes, we have a promise of an economic package to combat the virus soon though we cannot help but wonder as to what are we waiting for? This is really not the time to look at macro economic factors – fiscal deficit cannot be a criterion. All out measures need to be taken to ensure that the humanitarian crisis due to the economic fallout is not bigger than the deaths due to the virus.

Once the virus is gone, the demand from our domestic sector will itself be enough to pump up growth. The markets itself – there will be no stopping the run of the indices then! If they are going south now, they will burst through the roof alter. But till we get there and after we reach there, to ensure that people have required cash in their hands, enough liquidity in the system, economic sops are the need of the hour.

Let’s hope that the Govt is thinking this through really hard and will come up with a bag of sops which will help everyone in the country to tide over this crisis; the sooner the better it will help shore up sentiments.

 

The highlights:

Interest rate on delayed payments of income tax for financial year 2018-19 has been reduced to 9% from 12%

No charge on cash withdrawals from debit cards for 3 months

No minimum balance requirement fee – for three months only as of now

Bank charges for digital transactions to be reduced

Aadhaar-Pan linkage date extended to 30th June 2020.

Vivaad se Vishawas scheme – tax dispute settlement scheme, has also been extended to June 30,2020.

No additional 10% charge from now till June 30.

Delayed deposit of TDS, interest has been reduced to 9 % from 18%

All last dates for document submission and compliance moved to June 30, including last date for filing income tax returns.

GST returns and compensation returns extended to June 30, 2020.

Last date for filing March, April and May returns and compositions also extended to 30th June 2020

No late fee or penalty will be charged for companies with a turnover Rs 5 crore or lower that file GST late. Those with a turnover of more than Rs 5 crore, will pay a reduced interest rate of 9%.

Due date to complete pending payments of central and excise duties have been extended to June 30, 2020, without any interest or late fee charge

Default threshold limit is being increased to Rs 1 crore from the previous Rs 1 lakh for medium and small enterprises

Customs clearance to work 24/7

Import permits for fisheries expiring in April have been extended by 3 months

One-month delay will be condoned in arrival of consignment of fisheries

To consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC), at a later stage, if the current situation continues beyond six months.

Sabka Vishwas Scheme date extended to June 30

MCA 21 registry, moratorium issued from April 1 to Sep. 30, 2020

No additional fee for holding board meeting to 60 days, relaxation is till next two quarters

No violation if independent directors cannot hold a single meeting in FY20

Newly incorporated companies filing declaration extended by 6 months

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