13/05/2020
*Declarations Made by Hon’ble FM on 13.05.2020*
Essentially to our growth and build a self reliant India. That’s why it’s called “aatmanirbhar abhiyaan”. Resting on five important pillars: economy, infrastructure, tech driven systems, demography and demand. The intention is to make local brands into global ones.
Six major steps of MSMEs:
1. Rs. 3 lakh crore collateral free loan, for those with Rs 25 crore outstanding loan or Rs 100 crore turnover. Loans with 4-year tenure, moratorium of 12 months. 100% credit guarantee to banks by Government and NBFCs on principal and interest. To benefit 45 lakh units.
2. Subordinate debt of Rs. 20k crores for stressed MSMEs. 2 lakh units to benefit.
3. Funds of fund worth Rs. 10k crores for MSMEs that show growth potential.
4. Definition of MSMEs is being changed in favour of them. Investment limit being revised upwards. Micro- up to 1 crore investment, up to 5 crore turnover. Small- up to 5 crore investment, up to 50 crore turnover. Medium- up to 20 crore investment, up to 100 crore turnover.
5. Global tenders in government procurement up to 200 crores will be disallowed.
6. E-marketing linkage to be provided across the board to all MSMEs as trade fairs will be difficult in COVID-19 scenario. Any receivables stuck in PSUs will be cleared in the next 45 days.
* Statutory PF contribution reduced to 10% from 12% for the next three months. Govt. will continue to pay 12%, while staff pays 10%.
* Rs. 30000 crores special liquidity scheme for NBFCs. Will help struggling NBFCs who need money to carry on with business, and help MSMEs in turn. Investment will be made in both primary and secondary market transactions in investment grade debt paper. Securities will be funny funded by GOI.
* Emergency liquidity injection of Rs 90,000 crores to all Power Distribution Companies.
* Timelines of RERA to be extended.
* Relief to government contractors, both construction and goods and services. Extension of 6 months without any cost to contractors.
* Ministry of Housing and Urban Development to issue directions to regulatory authorities for treating "COVID-19" period as "Force Majuere" for real estate projects which had completion date as on or before 25.03.2020.
* In order to provide more funds at the disposal of the taxpayers, the rates of TDS for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. Rs. 50,000 crores benefit as a result.
* Entire Direct Tax ‘Vivad Se Vishwas’ scheme extended till 31.12.2020. No extra payment.
* Tax assessments getting barred on 30.09.2020 extended till 31.12.2020.
* Tax filing due date extended till 30.11.2020.
*Declarations Made by Hon’ble FM on 13.05.2020*
Essentially to our growth and build a self reliant India. That’s why it’s called “aatmanirbhar abhiyaan”. Resting on five important pillars: economy, infrastructure, tech driven systems, demography and demand. The intention is to make local brands into global ones.
Six major steps of MSMEs:
1. Rs. 3 lakh crore collateral free loan, for those with Rs 25 crore outstanding loan or Rs 100 crore turnover. Loans with 4-year tenure, moratorium of 12 months. 100% credit guarantee to banks by Government and NBFCs on principal and interest. To benefit 45 lakh units.
2. Subordinate debt of Rs. 20k crores for stressed MSMEs. 2 lakh units to benefit.
3. Funds of fund worth Rs. 10k crores for MSMEs that show growth potential.
4. Definition of MSMEs is being changed in favour of them. Investment limit being revised upwards. Micro- up to 1 crore investment, up to 5 crore turnover. Small- up to 5 crore investment, up to 50 crore turnover. Medium- up to 20 crore investment, up to 100 crore turnover.
5. Global tenders in government procurement up to 200 crores will be disallowed.
6. E-marketing linkage to be provided across the board to all MSMEs as trade fairs will be difficult in COVID-19 scenario. Any receivables stuck in PSUs will be cleared in the next 45 days.
* Statutory PF contribution reduced to 10% from 12% for the next three months. Govt. will continue to pay 12%, while staff pays 10%.
* Rs. 30000 crores special liquidity scheme for NBFCs. Will help struggling NBFCs who need money to carry on with business, and help MSMEs in turn. Investment will be made in both primary and secondary market transactions in investment grade debt paper. Securities will be funny funded by GOI.
* Emergency liquidity injection of Rs 90,000 crores to all Power Distribution Companies.
* Timelines of RERA to be extended.
* Relief to government contractors, both construction and goods and services. Extension of 6 months without any cost to contractors.
* Ministry of Housing and Urban Development to issue directions to regulatory authorities for treating "COVID-19" period as "Force Majuere" for real estate projects which had completion date as on or before 25.03.2020.
*DIRECT TAX*
* In order to provide more funds at the disposal of the taxpayers, the rates of TDS for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. Rs. 50,000 crores benefit as a result.
* Entire Direct Tax ‘Vivad Se Vishwas’ scheme extended till 31.12.2020. No extra payment.
* Tax assessments getting barred on 30.09.2020 extended till 31.12.2020 and getting barred on 31/3/21 to 30/9/21
* ITR filing due date extended till 30.11.2020.
* Tax Audit extended to 31.10.2020.
