Modis Rs 20 lakh crore package DETAILS: What MSMEs, Income Tax payers, PF subscribers, salaried people must know
Union Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur on Wednesday addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi in his address to the nation.
Union Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur on Wednesday addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi in his address to the nation. PM Narendra Modi on Tuesday announced a special economic package to fight the financial crisis caused by Covid-19 pandemic. Here are all the annoucemens made by Finance Ministry in terms of Rs 20 lakh cr relief package:-
- ITR filing for FY 2019-20 extended - Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.
- TDS, TCS reduced by 25% - Big relief! --- Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates.
- Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications
- 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.
- To give a fillip to DISCOMs with plummeting revenue and facing an unprecedented cash flow problem, Government announces Rs. 90,000 Crore Liquidity Injection for DISCOMs.
- Government announces Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs.
- Government launches a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
- In order to provide more take home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for Businesses & Workers for 3 months, amounting to a liquidity support of Rs 6750 crores.
- To ease financial stress as businesses get back to work, Government decides to continue EPF Support for Business & Workers for 3 more months providing a liquidity relief of Rs 2,500 crore.
- Unfair competition from foreign companies to become a thing of the past; Global tenders to be disallowed in Government procurement upto Rs 200 crores
- Rs 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 gets a revision, Investment limit to be revised upwards, additional criteria of turnover also being introduced
- Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit, says FM announcing parts of eco package
- To provide stressed MSMEs with equity support, Government will facilitate provision of Rs. 20,000 cr as subordinate debt.
- Rs 18,000 cr refunds given to tax payers; 14 lakh taxpayers benefitted from clearing of refund dues, says FM
- Massive package of Rs 3 lakh crore for MSMEs announced in terms of collateral-free loan. 45 lakh MSME units to benefit: Nirmala Sitharaman
- We shall not forget that we do have a responsibility towards the poor, needy, the migrants workers, divyang and the aged of the country : Finance Minister Nirmala Sitharaman
- Beginning today, over the next few days we will come before you (media) with team to put forth PM's vision: Finance Minister Nirmala Sitharaman.
- Economic package to spur growth, build a self-reliant India: FM Nirmala Sitharaman giving details of Rs 20 lakh cr stimulus
- Self-reliant India does not mean cutting off from rest of the world, says Sitharaman
-PM laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society: FM Nirmala Sitharaman
-Essentially this is to spurt growth and to build a very self reliant India and that is why this whole initiative is called Aatmanirbhar Bharat Abhiyan: Finance Minister Nirmala Sitharaman
-Five pillars of 'Aatmanirbhar Bharat- economy, infrastructure, system, demography and demand: Finance Minister Nirmala Sitharaman.
-Aatmanirbhar (self-reliant) India does not mean India is to be an isolationist country: Finance Minister Nirmala Sitharaman
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Announcing a special economic package, Prime Minister Narendra Modi on Tuesday night said the recent decisions by the government, the decisions by the RBI combined with Tuesday's financial package announcement come to about Rs 20 lakh crore - nearly 10 percent of India's GDP. There is an unprecedented crisis but India will neither get tired nor give up the fight against coronavirus, Modi said, and asserted that we have to protect ourselves and move ahead as well.
Special economic package is for our labourers, farmers, honest taxpayers, MSMEs and cottage industry, the prime minister said in a televised address to the nation.
India is standing on five pillars --economy, infrastructure, governing systems, vibrant democracy and supply chain.
The mega Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.
The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the United States, which is 13 per cent of its GDP, and by Japan, which is over 21 per cent of its GDP.
The Rs 20 lakh crore package includes Rs 1.7 lakh crore package of free foodgrains to poor and cash to poor women and elderly, announced in March, as well as the Reserve Bank's liquidity measures and interest rate cuts. While the March stimulus was 0.8 per cent of GDP, RBI's cut in interest rates and liquidity boosting measures totalled to 3.2 per cent of the GDP (about Rs 6.5 lakh crore).
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