CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

The first tranche of the Rs 20 lakh crore economic package

CA Kailash Kumar Pareek 
on 15 May 2020

LinkedIn


For MSME sector:

1. Collateral free loan of Rs 3 lakh crores for MSMEs. This will benefit 45 lakh units so that they can resume work and save jobs.

2. For stressed MSMEs, Subordinate debt provision of Rs 20,000 cr has been announced for 2 lakh MSMEs. It will benefit those which are NPAs or stressed MSMEs.

3. Rs 50,000 crore equity infusion through Mother fund-Daughter fund for MSMEs that are viable but need hand holding. A fund of funds with corpus of Rs 10,000 crore will be set up to help these units expand capacity and help them list on Markets if they choose.

4. Definition of MSMEs has been revised to allow MSMEs to aim for expansion and not lose benefits. Also, there'll be no distinction between manufacturing & services sector MSMEs.

New definition: Micro units with investment till Rs 1 cr, turnover up to Rs 5 crore. Small units with investment till Rs 10 cr, turnover up to Rs 50 cr. Medium units with investment till Rs 20 cr, turnover up to Rs 100 crore.

5. Global tenders will be disallowed up to Rs 200 crore for government contracts.

6. Will ensure e-market linkages are provided across the board in the absence of non-participation in trade fairs due to Covid. Govt of India and PSUs will clear all the receivables in next 45 days.

The first tranche of the Rs 20 lakh crore economic package

For Employees:

7. A liquidity relief of ₹2,500 crore EPF support is being given to all EPF establishments, EPF contribution will be paid by Govt. of India for another 3 months till August and will benefit more than 72 lakh employees.

8. Statutory EPF contribution for all organisations and their employees covered by EPFO has been reduced to 10% from 12% earlier. This doesn't apply to govt organisations. This will infuse Rs 6,750 cr liquidity into these organisations.

For NBFCs/HFCs/MFIs:

9. Rs 30,000 crore special liquidity scheme for investing in investment grade debt paper of NBFCs, HFCs and MFIs. These NBFCs are those that are also funding MSMEs. These will be fully guaranteed by government of India.

10. Rs 45,000 crore partial credit guarantee scheme 2.0 for NBFCs. The first 20% loss will be borne by the guarantor that is government of India.

 

For Discom:

A onetime emergency liquidity injection of Rs 90,000 crore against all their receivables. The states will guarantee it.

Others:

12. An extension of up to 6 months (without costs to contractor) to be provided by all Central Government Agencies like Railways, Ministry of Road Transport & Highways, Central Public Works Dept.

13. On real estate, urban development ministry will issue advisory to states/UTs so that the regulators can invoke force majeure. The regulators can suo moto extend completion/registration dates for six months for projects expiring on or after March 25, 2020.

14. A reduction of 25% of existing rates of Tax Deducted at Source (TDS) & Tax Collection at Sources (TCS) from tomorrow till March 31,2021. This will release Rs 50,000 crores.

15. Due date of all IT Return filings extended from July 31 to November 30. Vivaad se Vishwas scheme extended till December 31,2020. Date of assessments getting barred as on Sep 30, 2020 extended to December 31, 2020. Date of assessments getting barred as on March 31, 2021 extended to September 30, 2021.

 

Tags :

Recommended Read




Category Taxpayers
Other Articles by - CA Kailash Kumar Pareek 






Popular Articles



CCI Articles

submit article

Stay updated with latest Articles!





Trending Tags
aatmanirbhar bharat
Professional Resource
ca exams may 2020
newgstreturn
icai
Excise
unified portal
corporate law
cag
epfo
dvat
itr
audit
career
rbi
gst
gst return
sebi
tds
tcs
cbdt
traces
close
GST Live Class