Going beyond providing immediate relief against coronavirus pandemic, Prime Minister Narendra Modi has announced a stimulus package of Rs 20 Lakh Crore on Tuesday while addressing the nation. Claimed to directly touch the lives of 42 lakh labourers, farmers, honest taxpayers, MSMEs and cottage industry, PM Modi stated that it is a move to play an important role in the ‘Atmanirbhar Bharat Abhiyan’.
The economic package, worth Rs 20 lakh crore, is larger-than-expectedRs 20 Lac Crore Reform Package: Who gets the lion share..? and is equivalent to 10% of India’s GDP. As stated by the PM, Finance Minister Nirmala Sitharaman rolled out the details on the economic package while the MSMEs and small scale business are all eyes as Modi said that local sourcing will be the key aspect of the reform. The FM on Wednesday announced a facility of Rs 3 lakh crores collateral-free automatic loans for business, including micro, small and medium enterprise (MSMEs).
Here are the other key announcement made by FM Sitharaman,
1. Rs 3 lakh crores collateral-free automatic loans for businesses, including MSMEs
2. Rs 20,000 crores subordinate debt for stressed MSMEs
3. Rs 2500 crore EPF support for Business and workers for 3 more months
4. Rs 50,000 crores liquidity through TDS/TCS rate reduction
5. 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.
6. On real estate, urban development ministry will issue advisory to states/UTs so that the regulators can invoke force measures
7. The regulators can suo moto extend completion/registration dates for six months
8. A reduction of 25% of existing rates of Tax Deducted at Source (TDS) & Tax Collection at Sources(TCS)
9. Vivaad se Vishwas scheme extended till December 31,2020
10. Date of assessments getting barred as on Sep 30, 2020 extended to December 31, 2020
11. Date of assessments getting barred as on March 31, 2021 extended to September 30, 2021
12. All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.