In the wake of COVID-19 outbreak, the Finance Minister of India Shri Nirmala Sitharaman has come up with a few initiatives and announced a series of relief measures which surely bring a smile on India’s taxpayers. Coronavirus (COVID-19) relief measures announced by Finance Ministry mainly include Tax filling date extension, ATM withdrawal and bank charges waived off and more.
Also, Reserve Bank of India (RBI) has taken very necessary giant steps in order to safeguard economic slowdown which is caused by the coronavirus outbreak. In the Press Conference, RBI Governor Shaktikanta Das has announced a massive 75 basis points cut in repo rates to boost economic activities. Top economists and PM Narendra Modi strongly believe that the steps announced under RBI’s COVID-19 Rescue package would surely improve liquidity, reduce cost of funds on businesses/industries, help to attain a strong hold on financial stability.
2020 Coronavirus (COVID-19) pandemic in India is a major concern for citizens with the confirmed total number of 562 positive cases, 40 successful recoveries, 1 migration and sadly, 9 deaths in the nation. To prevent the COVID-19 infection that may drastically affect the entire 1.3 billion population of India, an honorable Prime Minister Shri Narendra Modi took a wonderful initiative i.e. 14-hour voluntary public curfew and later India observed a nationwide lockdown for 21 days in 75 districts.
Coronavirus (COVID-19) Relief Measures Announced by Finance Ministry amid 21 day lockdown: Key Highlights
Finance Ministry told that the Economic Task Force will soon announce an economic relief package to deal with the impact of the coronavirus pandemic on the economy of India.
1. No ATM withdrawal charges: There will be no ATM withdrawal charges levied on withdrawal of money from ATM’s ; this is done to minimize the crowd coming to the banks and also to facilitate people to buy things needed for daily needs.
2. No Minimum balance requirement charges: Following the footsteps of State Bank of India, FM has waived off the minimum balance requirements in the savings account for the time being.
3. Aadhar – PAN mandatory linking has been postponed to June 30th instead of usual March 30th.
4. The last date for filling taxes has also been extended to June 30th instead of usual March 30th.
5. The last date for compliances under Income Tax Act, Wealth Tax Act, Benami Transaction Act, Black Money Act, Vivaad se Vishwaas, has also been extended to June 30, 2020.
6. For filling GST returns for March, April, May and composition returns, the date is now extended to June 30, 2020.
7. With respect to the MCA21 registry, there is a moratorium being issued from April 1 till Sep 30 no additional fees for late filing.
8. The Finance Ministry has relaxed for 60 days, for holding the mandatory Board meeting for companies.
9. For newly incorporated companies, additional time of six more months is being given for filing declaration of commencement of business.
10. If there is a Director of the company who does not comply with minimum residency requirement of 182 days, then earlier this was treated as a violation but not now as announced by the FM.
Surely, these coronavirus (COVID-19) relief measures will play a significant role in economy wither the crisis arising out of the outbreak. “At the moment, these relaxations are for three months. As we go along, we will consider the situation and take decisions accordingly,” the finance minister said.
Highlights from the RBI Governor Shaktikanta Das’ press conference held on March 27,2020
Here are highlights from the RBI Governor Shaktikanta Das’ press conference on March 27:
1. RBI will decrease policy repo rate by 75 basis points to 4.4%
2. RBI is closely observing the evolving market and macroeconomic situation.
3. Projection of growth and inflation depends on spread, intensity and duration of virus, hence RBI is not giving any guidelines on growth and inflation.
4. Announcements of Rs 3.74 lakh crore of liquidity injection into system through several measures.
5. India has locked down and financial activities are under severe stress.
6. RBI said that “Living in extraordinary situation; war effort needs to be mounted against coronavirus using conventional, unconventional tools”.
7. All lending institutions allowed three month moratorium for all term loans.
8. Cash reserve ratio (CRR) of all banks reduced by 100 basis points to 3% with effect from March 28 for 1 year; to release Rs 1.37 lakh crore liquidity into the system.
According to Reserve Bank of India Governor FM Sitharaman “The 3 month moratorium on payments of term loan instalments (EMI) & interest on working capital give much-desired relief. Slashed interest rate needs quick transmission.”