Nirmala Sitharaman, the Finance Minister of India, addressed an official press conference on 13th May 2020 on the Rs 20 lakh crore economic package announced by Prime Minister Modi on Tuesday (12th May 2020).
The address was mainly focused on reliefs to Micro, Small and Medium Enterprises (MSMEs) and threw light on the several economic reliefs which have been panned by the government in line with the pandemic and its financial impact. Following are the key highlights of the press conference addressed by the Finance Minister on 13th May 2020 at 4 P.M.:
- Rs. 3 Lakh Crores. Collateral free Automatic Loans for Businesses, including Micro, Small and Medium Enterprises (MSMEs)
- Rs 20,000 Crores. Subordinate Debt for Stressed Micro, Small and Medium Enterprises (MSMEs)
- Rs 50,000 Crores. Equity infusion for Micro, Small and Medium Enterprises (MSMEs) through Fund of Funds
- New Definition of Micro, Small and Medium Enterprises (MSMEs) (attached as picture)
- Global tenders to be disallowed up to Rs 200 Crores.
- Rs. 2500 Crores Employees' Provident Funds Support for Business & Workers for 3 more months
- Employees' Provident Funds contribution reduced for Business & Workers for 3 months Rs 6750 Crores. Liquidity Support
- Rs 30,000 Crores. Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs)/ Housing Finance Companies (HFCs)/ Microfinance Institutions (MFIs)
- Rs 45,000 Crores. Partial Credit Guarantee Scheme 2.0 for Non-Banking Financial Companies (NBFCs)
- Rs. 90,000 Cr. Liquidity Injection for Distribution Companies (DISCOMs)
- Extension of Registration and Completion Date of Real Estate Projects under Real Estate Regulatory Authority (RERA)
- Rs. 50,000 Crores. liquidity through Tax Deducted at Source (TDS) and Tax collected at source (TCS) rate reduction
- Tax Deducted at Source (TDS) for non-salaried specified payments made to residents and rates of Tax collected at source (TCS) for the specified receipts shall be reduced by 25 of the existing rates
- This reduction shall be applicable for the remaining part of the Financial Year 2020-21 i.e. from 14th May 2020 to 31st March 2021
- Due date of all income tax return for Financial Year 2019-20 will be extended from 31st July 2020, 31st October 2020 to 30th November 2020
- Tax audit from 30th September 2020 to 31st October 2020
- Date of assessments getting barred on 30th September 2020 extended to 31st December 2020 and those getting barred on 31st March 2021 will be extended to 30th September 2021
- Period of “Vivad se Vishwas” Scheme for making payment without additional amount will be extended to 31st December 2020
14th May 2020 marked the second day of the Finance Minister laying down a tranche of the contours of India’s massive Rs 20 lakh crore fiscal plan announced by the Prime Minister of India in his address on the 12th May 2020. 14th March’s second tranche of announcements focused on migrant workers, street vendors, small traders, self-employed people, small farmers.