Who Got What in Rs 20 Lakh Crore Package? Read All Big Announcement Made by Finance Minister

On May 13, 2020

New Delhi : On Tuesday, Prime Minister Narendra Modi has announced a strong booster dose of Rs 20 lakh crore to support the economy in the backdrop of Corona crisis. In his address to the nation on Tuesday, PM Modi said that this package will support the economy of the country and India will be able to lead the world. PM has announced bold reforms in many sectors. The Prime Minister announced reforms in all sectors from agriculture to infrastructure, tax.

Finance Minister Nirmala Sitharaman has given detailed information about this package. Some important points are as mentioned below –

– Deadline for income tax return filing has been increased. It has been increased from 31 July to 30 September. Likewise, the deadline of the trust scheme has been extended to 31 December 2020. Previously it was for 30th June.

Taxpayers have got 25 percent relief in TDS deduction till 31 March 2021. Explain that the government collects tax through TDS. TDS is deducted at various sources of income. This includes salary, interest or commission received on any investment, etc.

– In the case of real estate, advisory will be issued that all projects be extended for 6 months from March onwards.

– Emergency liquidity of 90,000 crore rupees to help DISCOMs or electricity distribution companies.

– 30,000 crore special liquidity scheme is being brought for non-banking finance company, micro finance companies. There will be no cash crisis.

– NBFC will expand the already running scheme of 45,000 crores. At the same time, the loan guarantee scheme will be expanded, NBFCs rated double A or below will also get loans.

Big Relief on EPF
Finance Minister Nirmala Sitharaman said that the government will now deposit 12 percent + 12 percent amount on behalf of the company and employees in EPFO till August. This will benefit more than 75 lakh employees and institutions. In March, April and May too, the government had also contributed. This means that this facility has been extended for three months.

– But there are some conditions. This announcement of the government will only benefit companies which have less than 100 employees and whose 90% of the employees’ salary is less than Rs 15,000. That is, those who get more than 15 thousand salary will not get the benefit.

– 10 percent EPF will be cut instead of 12 percent of the employees. However, 12 percent EPF will be cut in PSUs.

Definition of MSME Sector Changed
– Finance Minister Nirmala Sitharaman said that the definition of MSME i.e. micro, small and medium industry has been changed. The investment limit has been changed in this. Micro-industry status will be given on 1 crore investment or 10 crore turnover.

Similarly, the status of small scale industry will be given on 10 crore investment or 50 crore turnover. At the same time, if there is 20 crore investment or 100 crore turnover, then they will be under the status of medium industry. Nirmala Sitharaman said that trade fair is not possible in the current era.

Definition of MSMEs has been revised, investment limit to be revised upwards, additional criteria of turnover also being introduced: Finance Minister Nirmala Sitharaman pic.twitter.com/BHYcGWD9H2
— ANI (@ANI) May 13, 2020

– Tender up to 200 crores will not be global. This is a big step for MSMEs. Apart from this, MSMEs will be linked to e-market. The government will do the rest of the payments of MSMEs within 45 days.

– According to the Finance Minister, out of the package of Rs 20 lakh crore, 3 lakh crore will go to MSME i.e. micro, small and medium industries. They will get a loan without guarantee. Its time limit will be 4 years. They will get a discount of 12 months. This offer is till 31 October 2020.

– According to Finance Minister, the MSMEs who are under stress will be provided with a cash of 20000 crores through subordinate debt. Note that MSMEs come in small and medium businesses.

– According to the Finance Minister, MSMEs who are capable but are troubled due to Corona, will be given help through the Rs 10,000 crore Fund of Funds for business expansion.

– According to the Finance Minister, reforms related to banks to the public sector, recapitalization of banks were done.

– Also, DBT has been transferred to the account of 41 crore Jan Dhan account holders.

– Finance Minister said that apart from PM Modi, several departments and related ministries were involved in the discussion regarding the package of Rs 20 lakh crore.