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Highlights of speech by Union Finance Minister May, 2020

A day after Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, today the Union Finance Minister Nirmala Sitharaman addressed a press conference in New Delhi thereby elaborating the Government’s plans in achieving the aim of self-reliant India.

The key highlights of the speech are as follows:

  • The Finance Minister stressed on ‘Atmanirbhar’ (self-reliant) India and five pillars of ‘Atmanirbhar Bharat’ i.e. economy, infrastructure, system, demography and demand.
  • The Government launches a Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies, microfinance companies, housing finance companies
  • Rs. 90,000 crore liquidity injection for Power Distribution Companies (DISCOMs)
  • The government announces Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs.
  • In order to give major relief to employers in payment of Provident Fund, Employees Provident Fund contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of Rs 6750 crores. This will increase the take-home salaries for employees.
  • Further, the Government of India and Central Public Sector Enterprises shall honour every MSME receivable in the next 45 days.
  • Rs 50,000 crore equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity. This will enable 45 lakh MSME units to resume business activity and also safeguard jobs.
  • Collateral free automatic loans to be provided to MSMEs worth Rs. 3 Lakh Crore. These have 4-year tenure, valid up to October 31st, 2020.
  • In a major initiative, Government announced Rs 3 lakh crores collateral-free automatic loans for businesses, including SMEs. Under this scheme, borrowers with up Rs 25 Crores outstanding and Rs 100 Crore turnover shall be eligible.
  • The Government shall provide Rs 20,000 crores subordinate debt for stressed MSME. Two lakh MSME’s are likely to benefit from it. The government will also provide support of 4,000 to CGTMSE.
  • The global tenders to be disallowed in Government procurement up to Rs 200 crores with the aim to make self-reliant India and be able to serve ‘Make in India’.
  • Extension of up to 6 months to be provided to contractors by all central agencies.
  • In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25 per cent of the existing rates.
  • Finance Minister also announces that the due date of all income-tax return for the financial year 2019-20 will be extended from July 31, 2020, and October 31, 2020, to November 30, 2020, and Tax audit from September 30, 2020, to October 31, 2020.
  • Rs 18,000 Crores Income tax refunds issued to taxpayers; 14 lakh taxpayers to be benefitted from the clearing of refund dues.
  • Rs 2,500 crore EPF Support for Business & Workers for additional months of June, July & August 2020. This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees
  • To provide more take-home salary to employees and also to give relief to employers in payment of Provident Fund dues, EPF contribution reduced for Business & Workers for 3 months Rs 6750 crores Liquidity Support.
  • Period of “Vivad se Vishwas” Scheme for making payment without additional amount will be extended to December 31, 2020.
  • Treating COVID-19 as an event of Force Majeure under RERA, Registration and Completion Dates of Real Estate Projects under RERA has been extended by 6 months for all registered projects expiring on or after March 25, 2020.

 

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