FM Nirmala Sitharaman announcement highlights: First part of the Rs 20 lakh crore economic stimulus unveiled

Finance Minister Nirmala Sitharaman shared the first instalment of the mega Rs 20 lakh crore package with the focus  being on the relief to the MSME sector.According to Finance Minister Nirmala Sitharaman, a package has been prepared after talking to several sections of the society. Growth has to be increased through the package. India has to be self-sufficient. Therefore, it is being called the Self-Reliant India Campaign. Finance Minister announced to increase the deadline for filing income tax returns for the financial year 2019-2020 from 31 July and October to 30 November.

Highlights

• For businesses, including MSMEs, Rs.3 lakh crore emergency Working Capital Facility has been allocated
• 20,000 crore Subordinate Debt for stressed MSMEs
• 50,000 crore equity has been planned to be infused through MSME Fund of Funds
• New Definition of MSME and other Measures for MSME
• No Global tenders for Government tenders of up to Rs.200 crore
• Extending the Employees Provident Fund Support for business and organized workers for another 3 months for salary months of June, July and August 2020
• EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for the next 3 months
• 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
• 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of Non-Banking Financial Company (NBFCs)/Micro Finance Institutions (MFIs).
• 90,000 crore Liquidity Injection for power distribution companies (discoms).
• Relief to Contractors given by extension of up to 6 months for completion of contractual obligations, including in respect of EPC and concession agreements
• Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
• Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
• Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source’ by 25% for the remaining period of FY 20-21
• Due Dates for various tax-related compliances have been extended.

UPSC