Finance Minister Announces Economic Relief for Companies
Finance Minister Nirmala Sitharaman shared the first installment of the Rs 20 lakh crore package. It focused on relief to the MSME sector.
On Tuesday 12th May, Prime Minister Modi had announced the Aatmanirbhar Bharat economic package which will focus on making India self-reliant. On 13th May Finance Minister Nirmala Sitharaman shared the first installment of the Rs 20 lakh crore package. It focused on relief to the MSME (Micro, Small, and Medium Enterprises) sector.
Here are some of the major points discussed by her:
To help 45 lakh businesses to resume work and save jobs, collateral-free loan of Rs 3 lakh crores for MSMEs will be given.
For 2 lakh MSMEs who have gone bankrupt and are forced to sell assets, the government will give a subordinate debt of Rs 20,000 cr.
The government will invest in companies that are suffering major losses due to the lockdown. They will invest by purchasing shares of the company. A total of Rs 50,000 crore will be invested.
The government has changed the definition of MSMEs so that more MSMEs can make benefits.
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.
Sometimes the government gives their projects to private companies. These are called tenders where private companies agree to complete the project for a certain price. Now the government has said that foreign companies will not be given tenders for projects below Rs 200 crore. This decision will ensure more tenders are given to Indian companies and Indian businesses develop.
The Employee Provident Fund (EPF) for all employees was 12% now it has been reduced to 10% for three months till August. This is so that the employees can receive more salary in hand. This doesn't apply to government employees.
For certain companies the government will be the EPF amount for 3 months. This will benefit more than 72 lakh employees.
The government has reduced TDS by 25% up to March 2021. (Call me)
The due date of all IT Return filings has been extended from 31st July to 30 November.
