The outbreak of COVID 19 is expected to have a very significant impact on the world economy in general and the Indian economy in particular. The impact ranges from the recession, supply chain disruptions and is expected to affect trade for at least the next two years. The Indian government has taken efforts to minimise the impact of COVID 19 in the Indian economy. The Union government announced relief measures on 24-03-2020, impacting Income tax, GST, banking sector and corporate affairs, in order to boost the economy.
The time limit for filing returns was extended till 30-06-2020 along with the due date for complying with the statutory requirement under the Income-tax act. Also, the interest rate for delayed payment of tax was reduced and there will be no late fee or penalty during the period.
The MSME sector was given relief under GST by allowing them to file returns due in March, April and June by the end of June without any late fee, penalty or interest. The other companies can avail the same benefit at a lower interest rate without any late fee or penalty during the period.
In the banking sector, ATM charges have been waived for three months along with the requirements of minimum balance. Further, the bank charges for the digital transactions were reduced for all the trade-related transactions.
The mandatory requirement of holding meetings of the board of companies has been extended till 30-09-2020. Relaxations under the companies act have been provided with respect to auditor’s reports, other meetings, fees and deposits.