The Union Finance Minister (FM) of India, Nirmala Sitharama announced an 8 point relief package on Tuesday which includes the waiver of penalties and late fee, decreased interest on delayed tax payments and also extension of due dates of several statutory compliances requirements so that people can cope up with the crises that have struck the Indian economy.
The minister said that the compliance relief measures announced by her will be aided by an economic package that the government is coming up with, saying, “We are very close to announcing an economic package, which will be announced sooner than later,”.
The compliance relief package announced today cover Goods and Services Tax (GST), Income Tax, Customs and Central Excise, Insolvency and Bankruptcy Code, compliance and regulations related to the Companies Act, Fisheries Department, Banks and Commerce.
Sitharaman said that the last date of filing the Income Tax Returns (ITR) for the financial year 2019 has been extended to 30th June 2020 from 31st March 2020. She said, “For delayed payments made till 30 June, the interest rate is reduced from 12% to 9%,” making clear that these measures are limited to FY19.
In case of any delayed deposits of tax deducted at source, the interest payable would be halved for payments made till 30th June from 18% to 9%.
The Union Finance Minister also said that the direct tax dispute settlement scheme “Vivad se Vishwas” is also being extended till the 30th of June without the additional 10% charge which was otherwise applicable. She said, “Earlier, up to 31 March, there was no additional charge. Everything is now extended to 30 June,”.
The minister has confirmed that the deadline of several actions including the furnishing of returns, filing of appeals, and investing in savings instruments or investments for the rollover benefit of capital gains tax benefit under several laws which are administered by the revenue department will also be extended until the 30th June.