As announced by Prime Minister, Shri Narendra Modi on 12^thMay 2020, Finance Minister Nirmala Sitharaman has released details of the ₹20 lakh crore economic package to revive the economy hit by the coronavirus pandemic. Wherein, it has aimed at all sections of the society, including the middle-class, SMEs, labourers, farmers and the industry, the economic package is themed around the ‘Self-reliant India campaign’.

It is expected to announce details of the full economic package gradually over the next few days with the first tranche being announced today. Both the Reserve Bank of India (RBI) and the finance ministry had already announced some relief measures in the first phase of the lockdown which began from March 25.

Following are the Hon’ble Finance Minister Nirmala Sitharaman Press conference Updates:

• Tax audit from 30th September, 2020 to 31st October,2020.

• Vivad se vishwas scheme deadline extended.

• Due date for filing income tax returns (ITR) extended from July 31 to November 30.
• All pending payments with regard to ITR refund shall be issued immediately.
• The TDS reduction shall infuse liquidity of ₹50,000 crore.
• -The TDS rate cuts shall apply for all purposes. It comes into force from tomorrow. i.e. 14^th May, 2020.
• Till 31^stMarch 21, TDS, TCS rates reduced by 25%.
• In a major relief to contractors, all Central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.
• The urban development ministry will ask state governments to treat Covid as force majeure and be flexible about execution of real estate projects.
•  ₹45,000 crore liquidity infusion, first 20% loss will be borne by Government of India, even unrated papers will be eligible for investment, enabling NBFCs to reach out even to MSMEs in far-flung areas.
•  ₹90,000 crore liquidity injection for Power Distribution Companies (DISCOM)
• Partial credit guarantee scheme for NBFCs.
• ₹30,000 crore liquidity scheme through debt papers, HFCs and micro-finance institutions.
• The reduction of statutory EPF contribution will increase take home pay and also increase liquidity.
• CPSEs will continue to maintain EPF at 12%.
• The statutory PF contribution is being reduced from 12% to 10% for 3 (three) months
• Government of India will pay for EPF for another 3 months. 72 lakh employees will benefit from it.
• Liquidity relief is being given for all EPF establishments. 12% of contribution which is paid by employer, and 12% by employee is now extended for another 3 months.
• Global tenders to be disallowed in government procurement up to ₹200 crores. This will make self-reliant India, will also then be able to serve ‘Make in India’.
• The new MSME definition address MSMEs’ fear of losing benefits due to outgrowing the MSME definition. Now, MSMEs need not worry about growing in size, they can continue to receive MSME benefits.
•  ₹50,000 cr. equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity.
• Definition of MSMEs being revised
• Borrowers with upto ₹25 crore outstanding and ₹100 crore eligible for collateralfree automatic loans.
• 45 lakh units can resume business activity and safeguard jobs due to relief package.
• There will be subordinate debt schemes for stressed NPA’s.
• This will enable 45 lakh MSME units to resume business activity and also safeguard jobs.
• Collateral-free loan for MSMEs upto ₹3 lakh crore:
• Income tax refunds of ₹18,000 crore expedited to improve liquidity.

Team MNA