InvestorQ : Can anyone share the Finance Minister N Sitharaman pointers for MSME, EPF & more?
Anusha Savla made post

Can anyone share the Finance Minister N Sitharaman pointers for MSME, EPF & more?

simran Kaur answered.
8 months ago
While we as a nation are dealing with the pandemic, the middle class and lower classes are suffering the most. In India half of the population is engaged in small and medium-sized businesses and are daily wage laborers. So, it was really important to come up with the rescue of those dependent on the routine business. This is where the government stepped in and announced a relief package of Rs. 20 lakh crore. Let’s take a look at the relief measures outlined so far:

Monetary/Liquidity Relief:

1)Collateral-free and automatic loans for struggling Micro, Small, and Medium Enterprises (MSMEs) worth Rs. 3 lakh crores. These loans will have a four-year tenure and a 12-month moratorium on principal repayment. Borrowers with a turnover of Rs. 100 crore and Rs. 25 crore loan outstanding are eligible for the same. The scheme would cease to exist on October 31st, 2020.

2) A Fund of Funds for providing equity funding for MSMEs with growth potential and viability shall be established with a corpus of Rs. 10,000 crore.

3) The three months EPF support announced earlier for businesses and employees have been extended till August 2020. Statutory Contribution to PF of both employer and employee will be reduced to 10% each, for the next 3 months for all establishments covered by EPFO.

4) To support Indian businesses, the procurement of global tenders for government tenders will be disallowed up to Rs. 200 crore.

5) A special liquidity scheme for Non-Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and Micro Finance Institutions (MFIs).

6) Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) will raise Rs. 90,000 crore against the receivables so as to infuse liquidity into the fund-starved power distribution companies.

7) With a view to releasing liquidity worth Rs. 50,000 crore, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates to be reduced by 25% with effect from May 14, 2020, to March 21, 2021.

Due Date Extensions:

1. Due-date for filing Income-tax return has been extended to 30th November 2020.
2. The last date for the tax audit extended to October 31, 2020.
3. Registration and Completion date for the builders/contractors in real estate, for all registered projects to be extended by 6 months.
4. Extension of 6 months for all contractors engaged by the government.