India is facing an enormous decline in government revenues and growth of the income as coronavirus hits economic activities of the country as an entire . A fall in investor sentiment impacts privatization plans, government, and industry. to enhance the economy, few steps were required to be taken thus the Indian government announced many reforms with a package of 20 Lakhs crores to again put the economy on its track.
Government has announced various new schemes and benefits for the revival of Micro, Small and Medium Enterprises sector from the impact of COVID 19, which are mentioned below:
- The government announced a collateral free loan package of three lakhs crores for MSMEs. Any MSME which has an existing loan (up to INR 25 crores) and turnover but 100 crores with any bank or NBFC can avail more loans, without the necessity for any security, because the govt will guarantee such loans completely. Additional capital finance of 20% of the outstanding credit as on 29 February 2020, within the sort of a Term Loan at a concessional rate of interest shall be provided.
- MSME receivables from the govt of Indian and CPSEs are going to be released in 45 days. E-market linkage for MSMEs are getting to be promoted to act as a replacement for trade fairs and exhibitions.
Revised limit for eligibility to register as MSME
- The government announced Rs.20,000 crore sub-ordinate debts for stressed MSMEs or MSMEs declared as NPA.
- 50,000 crore equity infusion via Mother fund-Daughter fund for MSMEs that are viable but need handholding. A fund of funds with a corpus of Rs.10,000 crore goes to be found out to help these units increase capacity and help them list on Markets if they choose.
- Non-allowance of worldwide bidders in government procurement tenders schemes up to INR 200 crores to support fair competition to MSME.
Employees Provident Fund
In March, the minister of finance had announced that the govt will lookout of EPF contribution that of both the employer and therefore the employee (12 percent each) for subsequent three months in wake of coronavirus outbreak. the entire contribution government can pay for 3 months is 24 percent. this is often for all those establishments who have up to 100 employees and 90 percent of the workers earn but Rs.15,000.
The government said that to supply more take-home salary for workers and to offer relief to employers in payment of PF, EPF contribution is being reduced rate from 12% to 10% for Businesses & workers for 3 months.
Employees Provident Fund
- In March, the minister of finance had announced that the govt will lookout of EPF contribution that of both the employer and therefore the employee (12 percent each) for subsequent three months in wake of coronavirus outbreak. the entire contribution government can pay for 3 months is 24 percent. this is often for all those establishments who have up to 100 employees and 90 percent of the workers earn but Rs.15,000.
- The government said that to supply more take-home salary for workers and to offer relief to employers in payment of PF, EPF contribution is being reduced rate from 12% to 10% for Businesses & workers for 3 months
Tax Deducted and Tax Collected at Source
The government also announced a discount within the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates by 25 percent on non-salaried payments between 13th May 2020 to 31st March 2020.
Income Tax
Due date of all tax Return filings extended from July 31 to November 30. Vivad se Vishwas scheme extended till New Year’s Eve , 2020. Date of assessments getting barred as on Sep 30, 2020, extended to New Year’s Eve , 2020. Date of assessments getting barred as on March 31, 2021, extended to September 30, 2021.