May 14,2020 Total Views : 726
Mega Relief Package / Finance Minister's 15 announcements: 3 lakh crore loans to 45 lakh small industries, 25% reduction in TDS from tomorrow; Date of income tax extended till 30 November.
Finance Minister reports special package breakup, tax audit date extended from 30 September to 31 October
The benefit of deduction in TDS will be in the payment of professional fees, interest, rent, dividend, commission and brokerage.
Such companies where there are less than 100 employees, the government will pay the PF money of less than 15 thousand salary.
6 months relief given to real estate developers for the completion of projects which were to be completed after 25th March
Source Dainik Bhaskar May 14, 2020, 12:11 AM IST
New Delhi. Finance Minister Nirmala Sitharaman made 15 announcements on Wednesday as part of the Rs 20 lakh crore self-reliant India campaign. These included 6 announcements for small-scale industries, 3 for tax-linked, 2 for employee provident funds, 2 for non-banking finance companies, and one for power distribution companies and the real estate sector.
Who benefits from these announcements:
45 lakh industries whose turnover is less than Rs 100 crore.
2 lakh small industries which are running in crisis.
Real estate sector employing 2 crore people.
10 lakh institutions, whose PF of 5 crore employees is deposited every month.
15 announcements in the half-hour press conference of the Finance Minister
1. Date of income tax return extended to 30 November
The last date for filing income tax returns for the year 2019-2020 has been extended from 31 July to 30 November. The last date of tax audit has also been increased from 30 September to 31 October. Income tax refunds will also be issued soon. The benefit of the refund will benefit the Charitable Trust, non-corporate business. Its scope includes proprietorship, partnership, co-operatives.
2. 25% reduction in TDS, decision implemented from tomorrow
What to get: For un-paid payments, there will be a 25% reduction in tax deduct at source and tax collection at source. This will reduce the burden on taxpayers by Rs 50 thousand crore.
On what payment: When you pay, contract, professional fees, interest, rent, dividend, commission and brokerage for a contract, then less TDS will be paid on it.
How to get: The new rates of TDS will be applicable from tomorrow ie Thursday 14 May. This decision will remain in force till 31 March 2021.
3. Big relief to real estate developers
Who benefits: Those real estate developers whose projects were to be completed on or after March 25.
What is the benefit: The timeline of registration and completion of such projects will automatically increase for 6 months.
How to get it: No one will need to provide a separate application for this. If the regulatory authority finds it necessary, they can extend the completion timeline for three more months. After increasing the timeline, real estate projects will automatically get a new project completion certificate. For this, the Center will issue advisory to the states.
4. Rs 3 lakh crore automatic loan to small industries
Who will get: 4.5 million medium, very small, small, cottage and home industries. Those who have to repay the arrears of Rs 25 crores and have a turnover of Rs 100 crores, such small industries will get loans.
How to get: This will be a collateral free automatic loan. That is, you will not have to give a guarantee in return. Guarantee fees will not be levied. The loan will be for 4 years. The principal amount will be 12 months relief to repay the principal amount of the loan.
When to get: The scheme can be availed till 31 October 2020.
News of your work related to the 20 lakh crore relief package ...
1. Rs 3 lakh crore loan to 45 lakh small industries, 25% reduction in TDS from yesterday; Date of income tax extended till 30 November
2. Announcement of package of 3 lakh crore rupees for 45 lakh MSMEs: Know who, how much, when and how to get the benefit of this?
3. 6 months deferment to developers: Know who, how much, when and how to get the benefit from it?
4. The government gave a package of 90 thousand crore rupees to discoms, but their electricity companies already owed 94 thousand crores
5. Government to give EPF of less than 15000 salary, announces 25% reduction in TDS; Know who will get the benefit of this, how much, when and how?
6. Made special announcements for MSME, EPF, NBFC, MFI, Contractors; Announcement of exemption in EPF for common man
7. Finance Minister Nirmala Sitharaman made 6 big announcements to give relief to MSME, cottage and home industry.
5. 20 thousand crores for small industries running in crisis
Who will get
: 2 lakh medium, very small, small, cottage and home industries.
What to get: Promoters of industries will get loan from the bank. It will cover such industries, which have been non-performing assets or are running into crisis.
How to get: Government will give money to Credit Guarantee Fund Trust for Micro and Small Enterprise. This trust will give money to banks. Then industries will get funds from banks.
6. 50 thousand crore rupees fund for small industries
Who will get: Small industries which are short of money but which have the potential to grow.
What to get: A fund will be created with a starting of 10 thousand crores. It will be a mother fund. Through this, a fund fund of Rs 50 thousand crore will be raised.
How to get: Small industries will be helped to increase their size. They will be motivated to get listed on the stock exchange.
7. MSME definition changed
WHAT HAPPENED: The definition of small industries has now been made the same for the manufacturing and service sectors. They will be called micro industries, where there is an investment of 1 crore and a turnover of 5 crore. They will be called small industries, where there is an investment of 10 crores and a turnover of 50 crores. Medium will be called medium industries, where there is an investment of 20 crores and turnover of 100 crores.
What is the benefit: Now more industries will come under the purview of MSMEs.
8. Opportunities to industries of the country in government tender up to Rs 200 crore
What used to happen earlier: Due to global tender, foreign companies were in the race to get tender and domestic small industries did not get a chance.
What will happen now: If the government purchases up to Rs 200 crore, then global tender will not be issued for that. General financial rules will be changed to allow small industries in the country to get a tender.
9. Small industry dues will be repaid
The government and government enterprises will pay all the dues of MSMEs in the next 45 days.
10. Support of 2500 crores in EPF
What to get: Under the Prime Minister's Poor Welfare Package, 12% of the Employer and 12% of the Employee was being given in Employee Provident Fund. This was for March, April and May. It has now been extended for three months.
When to get: Government will also help in EPF contribution of salary of June, July and August. This assistance will be of Rs 2500 crore.
Who will get: 3.67 lakh such institutions, where 72.22 lakh employees work. Employees whose salary is less than 15 thousand rupees and who work in institutions with less than 100 employees, the government will deposit the full 24% in their PF account.
11. EPF now has 10% contribution instead of 12%
What to get: In the Employee Provident Fund for the next three months, the contribution of Employer and Employee will be kept at 10% instead of 12%.
Who will get: Benefit will be given to 4.3 crore employees of 6.5 lakh institutions.
When to get: For the next three months. This will save 6750 crores of institutions.
Who will not get: Such workers who do not fall under the purview of the Prime Minister's Poor Welfare Package. Contribution of 12-12% will continue for those working in the public enterprise of the central and state governments.
12. Liquidity Scheme for Lending Companies
What will be found: A special liquidity scheme worth Rs. 30 thousand crores will be started.
Who will get: Non-banking finance companies, housing finance companies and micro finance institutions, who have difficulty in raising money from the market.
How to get it: The government will give full guarantee of this fund.
13. Guarantee Scheme for Lending Companies
What to get: Partial guarantee scheme of 45 thousand crore rupees.
Who will get: Non-banking finance companies, housing finance companies and micro finance institutions which have low credit rating and want to lend to MSMEs or Individuals.
How to get: If there is a loss due to the loan, then the government will bear 20% of the burden
14. Help to Power Distribution Companies
What to get: Power distribution companies will get help of 90 thousand crore rupees, because their revenue has come down significantly.
Who will get: Power Finance Corporation and Rural Electrification Corporation discom companies will get this help.
Why to get it: Now the distribution companies have to pay 94000 crore rupees to the power generation companies and transmission companies, but they are short of money.
15. Relief to Contractors
Contractors from central agencies like Railways, Road Transport Highways and CPWD will be given six more months to complete their projects.
