As per the provisions of the Indian Income-tax law, Tax Deducted at Source (TDS) on payments/credits made during the month of March, needs to be deposited latest by 30th  April.

On account of the above-stated ordinance, tax-payers heaved a sigh of relief and felt that they need not undertake any TDS compliance as of now. However, it may be noted that there is no extension in due date for deposit of TDS and the due date for deposit of TDS for the month of March 2020 still stands on 30th April 2020.

TDS provisions provided by the ordinance

It is advisable that the taxpayers should deposit the TDS on or before the due dates to avoid any repercussions. In a case, where on account of lock-down, the taxpayer is facing any sort of difficulty in computing the TDS liability, one may deposit TDS on an estimated basis so that interest on late payment is applicable only on the shortfall if any.

• Delay in depositing TDS for the month of March will invite a reduced interest of 0.75% per month instead of the existing rate of 1.5% per month.
• No penalty shall be levied on account of the above delay.
• No prosecution shall be sanctioned on account of the above delay
• The due date for filing TDS returns has been extended from 31st May 2020 to 30th June 2020.

Under the provisions of section 96(1) of Companies Act 2013, All Companies ( other than one person companies ) are required to hold AGM within 6 months from the end of the financial year.

In the case of the First Financial year for newly incorporated companies, the time period is 9 months from the end of the first financial year. Hence the Due date for FY 2019-20 for companies other than newly incorporated companies was 30.09.2020.

Many Problems Faced During Pandemic Time

Due to the Pandemic many companies were not able to complete the audit and get the audit reports completed before September first week to issue 21 days’ notice to the AGM.  The stakeholders had made multiple requests to the government for grant extension without having to apply for an extension by companies.

• This order granting extension has come as a huge relief to companies and the Auditors in complying with the legal requirements under the Companies Act.