India Announces Support Measures
Faced with an unprecedented situation, and with economic and social conundrums the like of which haven’t been seen since World War II (if then), governments internationally have been obliged to fight on several fronts at once, attempting to ensure support and resources for their health systems, whilst seeking to bolster stuttering economies and suddenly impoverished populations, in the hopes of preventing short-term destitution and long-term hardship.
Moves in this area over the past week have included in India, where Prime Minister Narendra Modi on March 24 ordered the country’s population of 1.3 billion into lockdown for three weeks. However, in addition, the Indian authorities announced various tax measures to support businesses and individuals. These included that:
- The deadline for FY18-19 income tax returns has been extended from March 31, 2020, to June 30, 2020.
- The Aadhaar-PAN linking date is to be extended from March 31, 2020, to June 30, 2020.
- If payments are made under the Vivad se Vishwas tax dispute resolution scheme by June 30, 2020, no additional 10 percent amount will be charged.
- Various deadlines for taxpayer obligations in relation to enforcement proceedings under various laws, including the Income Tax Act and the Wealth Tax Act, have been deferred to June 30, 2020.
- Where a taxpayer defers payment of advanced tax, self-assessment tax, regular tax, tax deduction at source, tax collected at source, equalization levy, securities transaction tax, and commodity transactions tax, a reduced rate of interest on tax dues will apply, of nine percent per year. Penalties and late payment fees will be waived.
In the area of goods and services tax policy, the Government has announced:
- For those having aggregate annual turnover of less than INR50m (USD655,000), the GSTR-3B return due in March, April, and May 2020, may be filed by June 30, 2020. No interest, late fee, or penalty will be charged.
- For those with turnover exceeding the aforementioned threshold, the same extension applies but tax dues will attract a reduced rate of interest of nine percent per year, from 15 days after the due date.
- The date for opting into the composition scheme, for making composition scheme payments for Q1 2020, and for the filing of the 2019-20 return for composition dealers will be extended to June 30, 2020.
- The deadline for filing GST annual returns for FY18-19 has also been pushed forward to June 30, 2020, from March 31, 2020.
- The due date for certain taxpayer responses to enforcement actions from the tax authority will be extended to June 30, 2020.
The Indian Government also revealed that no additional fees will be charged for late filing during a moratorium period from April 1 to September 30, 2020, for any document, return, statement, etc., required to be filed in the MCA-21 Registry, irrespective of its due date.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look