Covid 19 Relief Package: Top Taxation Relaxation to MSME

www.carajput.com; MSME

Big Moves for MSME sector announcement FM Nirmala Sitharaman Announcements

  • Collateral Free Instant Loan for MSME. No guarantee is required. It’s been 4 years. No key repayment for 1 year.
  • Strong MSME: Subordinated Debt 20,000 Crore For Stressed MSMEs Rs. 20000 Crores subordinate debts (all NPAs or stressed MSMEs will be eligible)
  • MSME is doing a profitable business: 50,000 cr. Infusion of funds for growth For potential and vibrant MSMEs Rs. 50000 Crores Equity Infusion through the listing
  • For Standard MSMEs: 3 lacs Crores collateral-free loans (automated) up to 31st October 2020. Borrowers with up to Rs. 25 Crores outstanding and Rs.100 crores turnover are all eligible. These loans have 4 years term and 12 months moratorium. 100% credit guarantee covers principal and interest. This can be availed up to 31st October 2020.
  • Change the meaning of MSME: Definition of MSMEs Turnover & investment based new definition of MSMEs., Manufacturing and service industry will not be differentiated
    • Micro: Restrict revised upward Expenditure up to 1 c. Or Turnover up to 5 kr.
    • Small: Limit revised upward Investment up to a maximum of 10 cr. Or Turnover up to Cr. 50.
    • Medium: Restrict revised upward Expenditure up to 20 kr. Or Turnover up to 100 C.
    • No gap in the product and service industry for micro-enterprises
  • Government Tenders: International tenders will be rejected up to 200 Cr.
  • E-market linkage for MSME. Within the next 45 days, all payments will be made to MSME.

Employee provident fund

  • EPF: MEASURES FOR PROVIDENT FUNDS: Rs. 2500 Liquidity relief for Crores shall be provided to all establishments. March, July, and August Monthly payments from the EPF (both employer and employee payment) would be payable by the Government of India. (Deposited for the month of April, May, and June)
  • For June, July and August will be paid by the Government (72,22,000 employees will be benefitted). Total of Rs. 2500 benefit cr.
  • EPF: Statutory PF deposit limit reduced from 12% to 10% for the next 3 months. (6,750 cr.) (except CG and PSU’s)
  • NBFC, HFC & MFI; Rs. 30,000 cr. Special liquidity scheme
  • Partial credit guarantee scheme for NBFC: Rs. 45,000 cr scheme. Govt. of India will be a guarantor. 20% will be borne by GOI.
  • Discom: Liquidity crisis Rs. 90000 Equity for these firms against their receivables and on the economy Assurances. This amount will be paid by PFC and REC.
  • Contractors: All Indian Government agencies should be given an extension of up to 6 months in order to comply with the provisions of the deal without any termination provision. Partial relief as bank loans for partly finished communication should be issued up to the point of completion.

Direct Taxes Relief :

-TDS rates decreased by 25% of existing rates from tomorrow to 31.03.2021(Non-salaried to residents and TCS) Payment for

Vivad Se Vishwas Scheme extending to 31.12.2020. Pay with no extra cost.

-Pending refunds for charitable trusts, non-corporate enterprises, enterprises, associations, LLPs and corporations will be issued immediately.

-Date of The return for the Financial year 2019-20

  • Earlier 31.07.2020 and 31.10.2020 Now 30.11.2020
  • Tax audit due date: 30.09.2020 and 31.10.2020

– Date of assessment extended

  • From the barring on 30.09.2020 to 31.12.2020
  • From those barrings on 31.12.2021 to 30.09.2021

Popular blogs:-

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

All about the Foreign Tax Credit in India: -Need to Know

What is a Foreign Tax Credit (FTC)? A Foreign Tax Credit (FTC) is a provision that allows residents to claim… Read More

3 days ago

Online Filing of Form 10F Without PAN for Non-Residents

How to Obtain a Tax Residency Certificate (TRC): A Tax Residency Certificate (TRC) is essential for determining treaty benefits under… Read More

3 days ago

Overview on IBBI 3rd Amendment Regulations

Important Amendment Regulations introduced to Corporate Insolvency Resolution Process The Insolvency and Bankruptcy Board of India (IBBI) has issued the… Read More

4 days ago

FAQs on ITR Filling Forms- Guide to select correct ITR

FAQs on ITR Filling Forms- Guide to select correct ITR Q.1 What does Form ITR-V and form ITR-Acknowledgement means? Form… Read More

1 week ago

Compliance Calendar under Companies Act & SEBI Act

Compliance Calendar under Companies Act and SEBI Act A compliance calendar helps companies track these and other regulatory requirements, ensuring… Read More

1 week ago

Easy Guidance on Meetings requirements as per Company Law

Easy Guidance on Meetings requirements as per Company Law Meetings under the Companies Act 2013 play a pivotal role in… Read More

1 week ago
Call Us Enquire Now