The first blueprint of mega relief package / Finance Minister's 15 announcements: Rs 2 lakh crore loan to 45 lakh small businesses, 25% reduction in TDS from tomorrow

The first blueprint of mega relief package / Finance Minister's 15 announcements: Rs 2 lakh crore loan to 45 lakh small businesses, 25% reduction in TDS from tomorrow

• The deadline for filing income tax returns has been extended to November 30
• Finance Minister shows breakup of special package, tax audit date extended from 30th September to 31st October
• The benefit of reduction in TDS will be in the payment of professional fees, interest, rent, dividends, commissions and brokerage.
• Where these companies have less than 100 employees, the government will provide PF money to those earning less than Rs 15,000
• Real estate developers will get 6 months relief for completion of projects which will be completed after March 25.

First blueprint of mega relief package / Finance Minister's 15 announcements: Rs 2 lakh crore loan to 45 lakh small businesses, 25% reduction in TDS from tomorrow

Finance Minister Sitharaman made 15 announcements on Wednesday under the Rs 20 lakh crore Self-Reliant India Campaign. There were 6 advertisements for small-medium enterprises, 3 advertisements related to tax, 2 advertisements for Employment Provident Fund, 2 advertisements for non-banking finance companies and one advertisement each for power distribution companies as well as real estate sector.

Who benefits from this announcement?

• 45 lakh industries with a turnover of less than Rs 100 crore
• 2 lakh small businesses that are in trouble
• To the real estate sector which employs 2 crore people
• 10 lakh organizations, of which PF of 5 crore employees is credited every month

Finance Minister's 15th announcement

1. Extended the date of income tax return till November 30

• The deadline for filing income tax returns for the year 2019-2020 has been extended from July 31 to November 30. The deadline for tax audit has also been extended from September 30 to October 31. An income tax refund will also be issued soon. Refunds will benefit charitable trusts, non-corporate businesses. Its scope includes proprietorships, partnerships, co-operatives.

2. 25 per cent cut in DTS, decision implemented from tomorrow

• What to get: Tax deduction at source and tax collection at source will be reduced by 25 per cent for any wage payment. This will reduce the burden on taxpayers by Rs 50,000 crore.
• Which payment you will get: When you pay payment, professional fee, interest, rent, dividend, commission and brokerage for a contract, it will be charged less TDS.
• How to get: The new rates of TDS will be applicable from tomorrow i.e. Thursday 14th May. This ruling will remain in force until March 31, 2021.

3. Great relief to real estate developers

• What's the benefit: to real estate developers whose projects were to be completed on or after March 25?
• What's the benefit: The timeline for registration and completion of such projects is automatically extended to 6 months.
• How to get it: No one needs to apply for it separately. The completion timeline can be extended for a further three months if the regulatory authority deems it necessary. After extending the timeline, their real estate projects will be able to get new project completion certificates. The Center will issue advisory to the states for this.

4. Automatic loans of Rs 3 lakh crore to small businesses

• Who will get: As many as 45 lakh small, cottage and housing industries. Who owes Rs 25 lakh crore. Whose turnover is 100 crores.
• How to get: It will be a collateral free automatic loan. That means you don't have to give a guarantee in return. Guarantee fee is also not required. The loan will last for 4 years. Principal i.e. will get 12 months relief to pay the principal amount.
• When to get: This scheme can be availed till October 31, 2020.

5. Rs 20,000 crore for small businesses in crisis

• Who will get: 2 lakh small, cottage and housing industries
• What to get: Business promoters will get bank loans. It will cover industries that have become non-performing assets or are in crisis.
• How to get: The government will provide money to the Credit Guarantee Fund Trust for Micro and Small Enterprises. The trust will give the money to the bank. Industries will then receive funding from banks.

6. Fund of Rs. 50 for small businesses

• Who will get it: Small businesses that lack money but also have the potential to grow.
• What to get: A fund will be created with a start of Rs 10,000 crore, it will be a mother fund. Through it, a daughter fund of Rs 50,000 crore will be collected.
• How to get it: It will help small businesses grow in size. They will be encouraged to be listed on the stock exchange.7. The definition of MSME has changed

7. The definition of MSME has changed

• What happened: The definition of small enterprises is now the same for the manufacturing and service sectors. Micro is a very small enterprise where 1 crore is invested and 5 crore is invested and 5 crore turnover. Small is a small industry with an investment of Rs 10 crore and a turnover of Rs 50 crore. Medium means a medium-sized industry with an investment of Rs 20 crore and a turnover of Rs 100 crore.
• What is the advantage: Where more industry will now come under the purview of MSMEs.

8. Opportunity to the country's industries in government tenders up to Rs. 200 crore

• What used to happen: Due to global tenders, foreign companies were in a race to win tenders and domestic small businesses did not get a chance.
• What will happen now: If the government buys Rs 200 crore, no global tender will be issued for it. The General Financial Rules will be amended. So that small businesses of the country will get a chance to get tenders.

9. Small business arrears will be paid:
The government and state-owned enterprises will make all outstanding payments to MSMEs in the next 45 days.

10. 2500 crore support in EPF

• What to get: Under the Prime Minister's Poor Welfare Package, 12 per cent of employees and 12 per cent of employees were given in the Employees Provident Fund. They were for March, April and May. It has now been extended by three months.
• When to get: The government will also help in the EPF contributions of June, July and August wages. This help will be Rs 2500 crore.
• Who will get: 3.67 lakh such organization will get the benefit. Where 72.22 lakh employees work. These employees whose salary is less than 15 thousand and who are working in organizations with less than 100 employees. The government will deposit 24 per cent in their PF account.

11. 10 percent contribution in EPF now instead of 12 percent:

• What to get: For the next three months, employer and employee contributions to the Employees Provident Fund have been reduced from 12 per cent to 10 per cent.
• Who will get: 6750 crore of these institutions will be saved in the next three months.
• Who will not get: Works that do not fall under the purview of the Prime Minister's poor welfare package. Central and state governments will continue to contribute 12-12 per cent to work in public enterprises.

12. Liquidity scheme for lending companies:

• What to get: A special liquidity scheme of Rs 30,000 crore will be launched.
• How to get: This pund will be fully guaranteed by the government.

13. Guarantee scheme for lending companies

• What to get: Partial guarantee scheme of Rs 45,000 crore
• Who will get: Non-banking finance companies, housing finance companies and micro finance institutions, which have low credit ratings and want to lend to MSMEs or Individuals.
• How to get: If there is a loss on lending, the government will bear 20 per cent of the burden.

14. Helping power distribution companies:

• What to get: Power distribution companies will get Rs 90,000 crore, as their revenue has come down drastically.
• Why get it: At present, distribution companies have to pay Rs 94,000 crore to power generation companies and transmission companies, but they are short of money.

15. Relief to contractors
Contractors from central agencies such as railways, road transport highways and CPWD will be given a further six months to complete their pro
jects.

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