Government has taken a number initiatives for providing financial assistance to the Micro, Small and Medium Enterprises (MSMEs) to cope with the financial impact of the COVID-19 pandemic which inter-alia include measures such as
- 20,000 crore Subordinate Debt for MSMEs,
- 4.5 lakh crore Collateral free Automatic Loans under Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs.
- 50,000 crore equity infusion through MSME Fund of Funds
- 15,000 crore Special Refinancing Facility for Small Industries Development Bank of India (SIDBI) from RBI as a specific response to COVID-19 for on lending/refinancing purposes
- Credit Guarantee Scheme to facilitate loans to 25 lakh persons through Micro Finance Institutions,
- Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFC/MFIs,
- 90,000 crore partial Credit Guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs.
In view of the challenges faced by taxpayers due to the outbreak of Novel Corona Virus (COVID-19), the Government of India has taken several taxation related measures for the industries including MSMEs which inter-alia include measures such as:
- Extension of various time limits for compliances and statutory actions under the taxation laws
- Extension of date for filing declaration under the Direct Tax Vivad se Vishwas Act
- Issuance of corporate tax refunds,
- Extension of the date of incorporation of eligible start up for claiming deduction under the relevant provisions of income tax act,
- Extending the date for making various investment/payment for claiming deduction under Chapter VIA-B of the Income Tax
- Concessional rates of interest in lieu of the normal rate of interest of 18% per annum for delayed tax payments.
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