There was a big announcement was made on 12th May 2020 Tuesday by Prime Minister Narendra Modi about self-independent India with 20 lakh crore package plans to save the economy from the pandemic situation of COVID-19. Also, he mentioned that this is a long fight to win over the Novel coronavirus and for that, they have plans for this package. He mentioned that the Finance Minister will declare all the rules & benefits of this package plans the next day.
On May 13th, 2020 Wednesday, the Finance Minister Nirmala Sitharaman shared the key points of this package and detailed for betterment for the economy to revive at the time of lockdown. The detailed on Wednesday is about the combination of government latest updates on major facts & also updates from the RBI (Reserve Bank of India).
Here below Nirmala Sitharaman Highlights for the Package Plans: –
- The TDS or TCS from May 14th till March 31st, 2021 has been scale down by 25% from the current rate of taxes and this will be applicable for all the payment. The amount of 50,000 crores will be released to the hands of the public instead of paying the amount as taxes.
- The government announced for the assured free loans of 3 lakh crore for MSME’s who’s having the 4 years of tenure with 12 months of delay. And the load will be available till October 31st, 2020 with 100% guaranteed credit which will help 45 lakhs of units to become a job savior.
- The income tax return of FY 2019-2020 is extended from 31st July 2020 and reset to October 31st – November 30th, 2020, and the date for tax audit from September 30th – October 31st, 2020.
- To underlines MSMEs due to lack of equity goods, the government has decided to support them and will provide the 20,000 crore being a subordinate debt.
- The definition of MSME is changed now & they don’t need to get worried about the growth rate & come up with the benefits.
- The defined investment limit for MSME is revised up to 1 crore by comparing the earlier limit-25 lakh.
- Defined 50,000 crore FOF’s (Funds from Funds) through the Mother funds-Daughter funds for the MSMEs Needed, which create the framework to expand their capacity for the company they will choose.
- Global or international tenders up to 200 crores, won’t be allowed in the government aspects & this will help us to make self-independent India and sale or purchase with “made in India” products.
- Facilitate MSMEs to connect with the e-market by considering the failure to engage in business trade fairs due to Novel coronavirus. The pending payments for MSME will proceed in 45 days from the central govt.
- The government decides to provide the EPF support by extending it for the next 3 months to the business & the workers with 25,000 liquidity relief. The PF which is not contribution protected earlier, the rate is reduced to 10% from 12% & this is not applicable for the central government.
- During the Vishwas scheme, making payment will not have any additional amount until December 31st,2020.
- The one-time limit of liquidity for power distribution companies is set to 90,000 crores, which will be set to Discoms to pay bearing companies & across the receivables.
- For NBFCs/HFCs/MFIs, the special liquidity plan of 30,000 crores has been released. The investment decisions for primary & secondary markets to purchase investment debts papers to make it ease the process flow.
- The immediate process has been taken for non-corporate business & charitable trusts to clear the pending refunds.
- The partial credit guaranteed scheme of 2.0 for NBFC for 45,000 crore liquidity strain is declared by the Government.
- All central agencies have been extended 6 months for the contractors, with no cost bearing. Declared the agreement of completing the work assigned likewise for goods & services or construction based.
- The urban affairs & Ministry of housing will handover advisory to states & appeal of force majeure empowered by UTs for under Act of God-COVID 19, all the registered real estate project expired on 25th March 2020 to make strong the contract enforcement.
The essential package is determined to prepare the self-independent(atmanirbhar) India by growing & enlarge the demand rate. There is the major focus is set for Self-independent India, the five pillars to get strong building equipment’s-Economy, system, infrastructure, demand & demography. PM said to make the local a brand and give your contribution to take it on the global level. Prime Minister has also declared for the Lockdown 4.0 which will be announced before the 18th May 2020 & also mentioned that it is a long-term struggle with COVID-19 and we will have to live with a spirit and learn to stay hygiene and follow all necessary to do to get protected from Coronavirus.