Takeaways from FM Nirmala Sitharaman's announcements | MSME | ITR | TDS | Covid Relief Announcements
New TDS rates https://cleartax.in/s/tds-rate-chart https://cleartax.in/s/tds-rate-chart https://cleartax.in/s/section-192 #COVID19 measures focussing on building a self-reliant India #atmanirbhar MSMEs: 🔹Collateral free automatic loans to meet daily business needs. Duration of the loan is 4 years. No principal repayment for 1 year. 🔹Stressed MSMEs will get loans in the form of subordinated debt through CGTSME Trust. Viable MSMEs to get equity infusion through creation of a fund of funds. 🔹Change in definition of MSME: For Micro, investment limit up to Rs 1 crore or turnover up to Rs 5 crore. For Small, investment limit up to Rs 10 crore or turnover up to Rs 50 crore. For Medium, investment limit up to Rs 20 crore or turnover up to Rs 100 crore. The difference in investment and turnover between a manufacturing and service sector MSME is removed. 🔹MSMEs will not face competition from foreign enterprises in bidding for Government procurement tenders up to Rs 200 crores. 🔹E-market linkage for MSMEs. Use of fintech to enhance transaction-based lending through the e-marketplace. 🔹Government and CPSEs to release MSME dues in 45 days. EPF: 🔹Extension of government support to pay EPF contributions for three more months of June, July and August for establishments eligible as per the PMGKY package. 🔹Statutory EPF contribution (both employer and employee) reduced to 10% from 12% for the next three months. Government undertakings are excluded from the benefit. NBFC/HFC/MFIs: 🔹Special liquidity scheme for investment in debt paper issues of NBFC/HFC/MFIs to enable the entities to raise money. 🔹Extending the present Partial Credit Guarantee scheme to cover borrowings by NBFC/HFC/MFIs. Power Discoms: 🔹PFC/REC to infuse liquidity into Power Discoms against receivables from them. Loans to Discoms against State guarantees to discharge their liabilities, and CPSEs to grant rebate to Discoms which shall be passed on to industry consumers. Contractors: 🔹An extension of six months for completion of all construction contracts and services contracts such as PPP contracts. 🔹Government agencies will partially release bank guarantees to the extent of contracts partially completed. Real Estate: 🔹COVID-19 is an event of ‘Force Majeure’ under RERA. Extension of registration and completion date by six months for all projects expiring on or after 25 March 2020. 🔹The timelines for various statutory compliances under RERA are also extended. Direct tax: 🔹Reduction in TDS and TCS rates by 25% of the existing rates, for payments from tomorrow till 31 March 2021. 🔹Disbursal of all pending income-tax refunds of charitable trusts, non-corporate business, proprietorship, partnership, LLP and society on an immediate basis. 🔹Extension of due date for filing of all income tax returns for AY 2020-21 to 30 November 2020. Extension of due date for tax audit for AY 2020-21 to 31 October 2020. 🔹The last date of assessments getting time-barred on 30 September 2020 stands extended to 31 December 2020. In the case of assessments getting time-barred on 31 March, 2021 stands extended to 30 September 2021. 🔹The last date of making payment without additional amount stands extended to 31 December 2021.
