Finance Minister Nirmala Sitharaman

Nirmala Sitharaman Announced of Rs 20 Lakh Crore Economic Package

Union Finance Minister Nirmala Sitharaman addressed the nation on 13 May 2020 Wednesday and outlined the few measures to be taken under Rs 20 lakh crore economic package to assist the business especially MSMEs to bounce back and recover from the economic impact caused Coronavirus pandemic. The tranche 

To provide a big push to economy, PM Narendra Modi announced Rs 20 lakh crore economic relief package while addressing the country on 12 May 2020 regarding the novel coronavirus situation. Where he also included that we are heading towards to be self-reliant India (Atmanirbhar Bharat).

This was the first segment of the Rs 20 lakh crore economic package that includes measures as follow:

  • 6 are for MSMEs
  • 2 are for EPF
  • 2 for NBFCs and MFIs
  • 1 for DISCOMS
  • 1 for contractors
  • 1 for the real estate sector
  • 3 tax measures

However, this Rs 20 lakh crore economic relief package includes Rs 1.7 Lakh Crores package that was earlier announced by Finance Minister Nirmala Sitharaman and measures taken by RBI (Reserve Bank of India).

This segment Economic Relief Package was concentrating on MSMEs, i.e. the smaller and medium manufacturers and service providers who have been massively affected by Coronavirus Pandemic.

Here are Some the Key Points by Nirmala Sitharaman:

1. Government of India announced Rs 3 Lakh Crore Automatic Loans for Business, especially MSMEs

2. To provide equity support to MSMEs, GOI will provide Rs. 20,000 crores provision as subordinate debt

3. Equity infusion of Rs. 50,000 crores for MSMEs through funds of funds to help in the expansion and capacity of MSME.

4. A revised definition of MSMEs with a change in investment limit and turnover criteria.

5. GOI will continue their support in Employees Provident Fund (EPF) for business and workers for three months. The government will pay EPF of employees with a salary under 15,000.

PF contribution reduced from 12 per cent to 10 per cent for the employees who are not in the above criteria.

6. A new scheme had been launched to support NBFCs/HFCs/MFIs of Rs 30,000 crore Special Liquidity. This scheme is launched to increase the flow of money.

7. As DISCOMs are facing a plunge in revenue and unusual cash flow problem, GOI announced Rs. 90,000 Crore Liquidity Infusion.

8. Significant relief to the contractors as the government ordered central agencies to give an extension of up to six months without costs to contractor.

9. Government of India advised for the six months extension of registration and completion of the real estate projects expiring on 25 March or after.

10. Rs 50,000 crores liquidity will be infused by GOI by reducing TDS rates for non-salaried specified payments made to residents and rates of TCS for specified receipts, by 25 per cent of the existing standards.

11. Extension of the due date of all the income tax return for the year 2019-20 from 31 July, 2020 & 31 October, 2020 to 30 November, 2020.

Also, there is an extension in Tax audit from 30 September, 2020 to 31 October,2020.

 

Here is the Link you can see the whole presentation made by Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

Share your view in the comments section regarding the measures taken by Union Finance Minister Nirmala Sitharaman.

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