Home / Uncategorized / Economy / Sitharaman on Rs 20 lakh crore economic package: Key points

Sitharaman on Rs 20 lakh crore economic package: Key points

Finance minister Nirmala Sitharaman on Wednesday unveiled unveiled the details of the mega economic stimulus package aimed at uplifting the economy battered by the ongoing nationwide lockdown due to pandemic Covid-19 FM Sitharaman announced Rs. 30,000 cr liquidity facility for NBFCs, housing finance companies and MFIs. Among other big bang announements, Sitharaman also announced collateral free automatic loans for businesses, including MSMEs, up to 3 lakh crore.. Here are the key highlights of today’s press conference:

Sitharaman on Rs 20 lakh crore economic package: Key points

  1. Self-reliant India does not mean cutting off from rest of the world, says Sitharaman
  2. Rs 18,000 cr refunds given to tax payers; 14 lakh taxpayers benefitted from clearing of refund dues, says FM.
  3. Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit, says FM announcing parts of eco package
  4. Rs 20,000 cr subordinate debt for stressed MSMEs to be provided; 2 lakh MSMEs to benefited.
  5. Rs 50,000 cr equity infusion through MSME Fund of Funds; to provide support to growth potential MSMEs. 
  6. MSME definition to be changed; investment limit defining MSME revised upward; turnover based criteria being introduced
  7. Rs 20,000 cr subordinate debt for stressed MSMEs to be provided; 2 lakh MSMEs to benefit
  8. Govt to pay Rs 2,500 crore as employee, employer contribution to EPF; scheme extended till August, says Sitharaman
  9. Statutory PF contribution by employer reduced to 10 pc from 12 pc earlier; to provide Rs 6,750 cr liquidity relief.
  10. FM Sitharaman announces Rs 30,000 cr liquidity facility for NBFCs, housing finance companies and MFIs.
  11. Rs 45,000 cr liquidity to be infused in NBFCs through partial credit guarantee scheme.
  12. Electricity distribution cos facing serious crisis; emergency liquidity infusion of Rs 90,000 cr in discoms
  13. ₹45,000 crore liquidity infusion, first 20% loss will be borne by govt. of India, even unrated papers will be eligible for investment, enabling NBFCs to reach out even to MSMEs in far-flung areas
  14. TDS and TCS rate reduced by 25% with effect from tomorrow till March 31, 2021; this will release nearly ₹50,000 crore into the hands of the people, rather than coming to the government in the form of taxation  
  15. Due date for all income tax returns extended to November 30.
  16. All pending refunds to charitable trusts and non-corporate business & professions shall be issued immediately.
  17. Due date of all income-tax return for FY 2019-20 will be extended from July 31, 2020 & October 31, 2020 to November 30, 2020 and Tax audit from September 30, 2020 to October 31, 2020.
  18. Ministry of Housing and Urban Affairs, Government of India will issue advisory to states and UTs enabling invocation of force majeure / Act of God measure during COVID19 period, for all registered real estate projects expiring on or after 25 Mar 2020. Bringing flexibility in contract enforcement
  19. All central govt. agencies will give up to c6-month extension without any cost to contractor, covering construction and goods/services contracts, they can take up to additional 6 months to comply with contract conditions
  20. Seamless e-market linkages across the board will be provided to MSMEs, considering their inability to participate in trade fairs due to COVID19. All pending payments to MSMEs, from central govt. bodies & PSUs to be done within next 45 days .

About CA Junction

Check Also

Govt. extends validity of vehicle related documents till July 31

Govt. extends validity of vehicle related documents till July 31

In pursuant to the guidelines issued by Ministry of Home Affairs vide No.40-3/2020-DM-I(A), Dated 24th …

Leave a Reply

Your email address will not be published. Required fields are marked *