The corporate affairs ministry has proposed a one-time scheme, under which penalties will be drastically cut for companies for late filings of their financial statements and annual returns, enabling them to improve their compliances.

The Companies Compliance Facilitation Scheme, 2026, will remain in force between April 15 and July 15. It will allow companies to complete their pending submission of annual returns and financial statements during these three months by paying just 10% of the stipulated penalties, according to a circular issued by the ministry.

Since July 2018, companies are required to pay an additional fee of Rs 100 per day for the late filing of annual returns and financial statements.