Prime Minister Narendra Modi layed out a vision on building up a self-reliant India last night and announce a complete economic package of 20 Lakh Crore for the growth spirit of the nation. Union Finance Minister, Nirmala Sitharaman addressed the nation in a press conference today regarding the first installment of the mega package which today focussed on the revival of the MSME sectors.
Finance Ministers acknowledged the nation by announcing automatic collateral-free loans for MSMEs (Ministry of Micro, Small and Medium Enterprises) upto worth 3 lakh crore available till 31st October with no guarantee fees which came up with a big booster for MSME’s. 45 Lakh MSME’s units could benefit from the same. Furthermore, subordinate liquidity of worth Rs. 20 thousand crores to benefit 2 lakh MSME’s have been announced for the stressed MSME’s. Stressed and NPA MSMEs will now be eligible for this facility. Finance Minister also decided to infuse capital of Rs 50,000 crore in MSMEs for their expansion.
FM Sitharaman also announced the change in the definition of MSMEs which will allow them to expand the facilities even with raised investment limits in them and the service distinction has now been removed. Also, liquidity of Rs 25 hundred crore EPF support for business and workers for 3 more months has been announced because of which over 72 lakh employees are expected to benefit from the scheme. For the NBFCs, FM Sitharaman declared a special liquidity scheme and Rs 45 thousand crores as a partial credit guarantee scheme. The government has also set aside Rs 90,000 for discoms against receivables through state-issued guarantees, to help the people clear gencos dues to reduce their stress for their business.
In today’s announcement, force majeure relief has also been announced for the real estate developers and suo moto extension of 6 months have been provided for the estate projects registered on or before 25th March.
FM Sitharaman has now extended the deadline for the income tax return for FY 2019-20 by 3 months from July 31 and October 31 to November 30 and tax audit from September 30 to October 31. and the TDS rate is now cut-down to 25% for non-salaried class and is applicable from May 14. This TDS reduction would be applicable for the remaining part of the current fiscal year which is up to March 31 next year. Whereas the provision of the “Vivad se Vishwas” scheme has also been granted expansion till December 31, 2020.
The rest of the information will be declared by the Finance Minister and its team in the upcoming 2 days.