Stimulus Package Announced Today

Stimulus of twenty  Lakh crores announced by Finance Minister today is produced below 

Bifurcation Part-1, Next Conference Tomorrow*

1. MSME Step-1-Collateral Free Automatic Loan for MSME. Those MSME having Loan upto 25cr and turnover upto 100cr will be covered in this scheme. 100% Central Govt Guaranteed. Will help 40 Lac Units. This loan will be for 4 Yrs with a Moratorium of 12 Months. 45 Lakh MSME Units will get benefit from It. Total 3 Lakh Cr Loan will be Given under this scheme. 

2. MSME Step-2- 20000Cr will be infused as Subordinate Debt for stressed MSME. 2 Lakh SME will get benefit from this. Govt will provide 4000 cr to CGTSME Trust. 

3. MSME Step-3- Their is a Fund of Fund to be created. Rs 50000cr will be infused as equity to standard MSME. Will help them to expand their capacities. 

4. MSME Step-4- Definition of MSME changed. Investment Limit which defines a SME is changed. Now Turnover criteria is also introduced. Different between manufacturing and service SME is removed. Micro Units- Investment limit increased to 1Cr from 20Lakh. And Turnover can be upto 5Cr. Other changes are also done. For Medium Enterprise the limit increased to 10 Cr Investment and turnover 50Cr. 20Cr and 100Cr

5. MSME Step-5- Tenders upto 200Cr relating to Govt procurement will not be Global Tenders any more. mSME will get benefit out of it

6. MSME Step-6- E-Market Linkage will be Provided to all MSME due to less possibility of Trade fares. All Central Govt outstanding will be cleared within 45 Days by Govt Help of all MSME.

7. EPF Step-1- EPF Payment was paid by Govt for Mar, April and May now Extended by another 3 Months. 12%+12% will be paid by Govt of India.

8. EPF Step-2- Contribution reduced from 12% to 10% for those organisation having more than 100 employee is done now.

9. NBFC, MFI, HFC-Step-1- Special 30000cr Liquidity window will be given. Govt will buy debt papers of these institutions even if investment grade. These will be fully guaranteed by govt of India.

10. NBFC Step-2- To Give 45000cr Liquidity will be given to NBFC. First 20% Loss will be born by Govt of India. Even unrated papers will be get money under this scheme.

11. Discom Steps ,- Discom not able to pay the power generation Companies. 90000cr Special fund created to pay all outstanding of Power Generation Companies. PFC and REC will give this money

12. Contractors Step 6 Month extension will be given to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will partially release Bank Guarantees to the extent of work completed. A Big Step.

13. Real estate Step- Covid19 can be treated as act of God. Using the Force Major Clause the project registration will be extended by 6 Month automatically. Completion dates of existing projects to be extended automatically by 6 Months by Govt authorities. 

14. Tax Related Step- Non Salaried TDS and TCS rates will be reduced by 25% from existing rates. This will be effective from tomorrow and will remain till 31-03-2021.

15. Tax Related Step- All Pending Refunds will be issued immediately to all even above 5 Lakhs. For AY 2020-21 the ITR Dates extended to 30th Nov 2020, And Tax Audit Date extended to 31st October 2020.

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The Finance Minister, Nirmala Sitharaman in her press conference today announced various direct tax related measures.

As per the announcements, the income tax return filing deadline for FY 2019-20 has been extended to November 30, 2020 from July 31, 2020. "Due date for all income-tax return for FY 2019-20 will be extended from July 31 2020 and 31 Ocotber 31, 2020 to November 30, 2020 and tax audit from September 30, 2020 to 31st October 2020," the FM stated.

This is a much needed relief for taxpayers as the government has earlier extended the deadline for receving the Form-16 from June 10, 2020 to June 30, 2020 via an ordinance dated March 31, 2020. The extension has left only one month for the individual taxpayers to file their tax returns before the deadline i.e. July 31, 2020. Chartered accountants and other tax experts were anticipating the extension of ITR filing deadline for FY 2019-20.

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Highlights of Hon'ble Union Finance Minister, Smt. Nirmala Sitharaman's Press Conference held on 13th May,2020 @ 4PM. #AatmaNirbharBharat

✅PM has laid out a vision for India. Vision laid out after wide consultations.

✅ Special Package built on 5 pillars - Economy, Infrastructure, System, Demography & Demand.

✅Focus - Land, Labour, Liquidity & Law

✅Taking local brands to Global levels. Idea is to promote more local brands.

✅ Highlights Modiji's reform driven schemes. Money directly to Farmers during Lockdown.

✅ Today's measures mostly related to MSMEs. In short Govt's bosster shots for MSMEs.

✅3 lakh crore collateral free loan. 45 lakh MSMEs to benefit from the package.

✅20,000 Crores for stressed MSMEs. 2 lakh stressed MSMEs to benefit.

✅Rs 50,000 fund infusion ( Fund of find) for MSMEs & Rs 10,000 Spl corpus.

✅New definition of MSMEs. Investment limits to be raised upwards now, criteria based on investment & turnover.

✅Major shift in Global Tender Policy.No Global Tenders upto Rs 200 Crores.

✅All receivables to be cleared by 45 days. E mkt linkage for MSMEs.

✅EPF contribution reduced by Govt. Liquidity relief for EPF Establishments. Infusion of 2,500 Crores liquidity benefitting  72 lakh employees. EPF support for 3 more months

✅ Statutory EPF contribution reduced from 1moreto 10% for non Govt & non public sector units for 3 mor months.

✅Rs 30,000 infusion for NBFCs, HFCs & MFIs. 

✅Rs 45,000 Crores for partial credit scheme to help NBFCs .

✅Spl measure for DISCOMS with liquidity injection of Rs 90,000 Crores to help power generation.

✅All Govt contractors to get 6 more months extension without costs to comply with contracts. Partial release of Bank guarantee to ease contract cash flows.

✅Spl measures to help real estate. Urban Development Ministry to issue advisories. RERA timelines to be extended. Treat COVID 19 as event of " Force Majeure". 

✅Spl Tax related measures. Rs 50,000 crores liquidity they TDS/TCS. TDS reduced  by 25%.

✅Due date of IT returns extended upto 30th Nov. Tax Audit dates extended to 31st Oct. Date of assessment to 31st December,2020.All pending refunds to be released soon.

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Hon'ble Finance Minister's briefing session to continue on regular basis as. part of AatmaNirbharBharat Package.

Watch out for next briefing......