Fiscal Year 2020- The finance ministry put a break on the rumors that the fiscal year would get extended, which seemed erroneously reported in some part of the media as of 1st July. But the finance ministry has cleared the air and retained its date as always. The industry was of the view that the extension of the fiscal year as per the economic impact due to the outbreak would make the ministry change its mind give the extension to the next quarter.
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The only amendments that got made to the Indian stamp duty Act, which have the deference from 1st July 2020. The amendment was long due as it was in place from 1899. The changes would have come effect on 1st April 2020, which seemed brought about to bring in harmonized systems that were pending over a century resulting in tax evasion. The new version of the stamp duty will ensure that there is a rationalized way of collecting it, and no tax evasion practices will continue henceforth.
The stamp duty rates that are levied by Maharashtra gave precedence in the collection, and this benchmark helped the finance ministry officials make effective amendments using their model. This mechanism is efficient enough for stamp duty collection, which can get applied to the security market instruments transactions which are done through stock exchanges or even by using the clearing corporation that is authorized by the stock exchange and the depositories herewith.
Some of the industry felt that a 15 month year would help make the financials look better than it would the previous year in the light of the outbreak. But it was not, as per the finance ministry, the beginning of the financial year would usually begin from 1st April (2020-2021). The revenue ministry has issued a notification for the amendment of the Indian Stamp Duty Act. RBI will follow the 1st July to 30th June financial year for this financial year only after that it would also follow the April 1st of every year. The central bank got its fiscal year finalized by the directive of RBI from 1st April onwards.
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The finance minister also doled out some concessions on the 24th, which were relief measures as per Statutory and Regulatory compliance. Certain compliance got extended to 30th June without any penalty or any default consequences, which usually had to get complied by 31st March.
- The income tax filing returns for the financial year 2018-2019 can now get filed on 30th June 2020.
- The Aadhar and PAN linking date has been extended to 30 the June as well
- Vivad Se Vishwas scheme which allows a rebate of 10% has got extended to 31st June
- Investments that get made in the instrument of the savings has an extended time limit to 30th June
You can note that the extensions are only for the compliances but not for the financial year as such that was mistaken earlier by the media and others.
The relief measures got announced concerning
- Income tax
- Customs and Central
- Corporate Affairs
- Insolvency and bankruptcy code
- Banking sector and commerce
For the delayed payments of the below mentioned can now be done on 30th June 2020 with a reduced interest rate of 9% instead of the earlier 12% or 18% p.a. will be charged. No late fee or the penalty will be issued during the period of extension.
- Advance tax
- Self-assessment tax
- Regular tax
- Equalization levy
For the GST payment, the extension of last week of June 2020 with no interest, late, and penalty as well. The clearance of customs will get done round the clock till the end of 30th June 2020.
Relaxation of the financial services for the customers in the form of
- Debit cardholders can withdraw money without any charges from any ATMs during the three months
- A waiver for the minimum balance fee
- Digital trade charges will get reduced for all trade finance customers.
These are some of the measures that the finance ministry has rolled out to help stabilize the economy.