My times today. Finance Minister Nirmala Sitharaman addressing press conference today, outlined the first tranche of the contours of India’s massive Rs 20 lakh crore fiscal stimulus announced Prime Minister Narendra Modi.
FM Sitharaman said the announcements will be made in tranches. Today’s tranche will include measures as follows: 6 are for MSMEs, 2 are for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.
For standard MSMEs, collateral free automatic loans worth Rs 3 lakh crore will be provided.
- This is for 4 year tenure and is 100 percent guaranteed.
- No principal repayment for 12 months. This will last till October 21, 2020.
- It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs.
Rs 20,000 crore will be infused through subordinate debt for stressed MSMEs who have equity problems.
This liquidity line will benefit 2 lakh MSMEs. NPA’ or stressed MSMEs are eligible for scheme.
Government will provide Rs 4,000 crore to CGTMSE who will provide partial guarantee to banks who will then give benefit to stressed MSMEs.
Definition being changed for MSMEs in their benefit. So that they can grow in size and get benefits. Investment limit which defined MSMEs revised upwards. Additional criteria being brought in is turnover size – earlier differentiation between manufacturing and service MSMEs will be categorised similarly.
To increase take-home salaries for those not covered in EPF benefit, the statutory PF contribution is being reduced from 12 percent to 10 percent.
For state PSUs – the employers will continue to pay 12 percent, employees will get option to pay 10 percent for the next three months.
pending refunds of charitable trust, non-profit business, cooperatives and small partnerships, shall be issued immediately. Due date of all I-T returns for FY19-20 from July 31, 2020 and October 31, 2020 extended till November 31, 2020. Tax audits extended from September 30, 2020 till October 31, 2020. Date of assessments getting barred as of September 2020 is extended till December 2020. Those getting barred on March 31, 2021 are being extended till September 31, 2021. Vivad se Vishwas scheme is being extended till December 31, 2020 without any additional amount.