FM’s Big announcements for MSME: TDS rates slashed by 25%

6 Major steps for MSME

• Collateral free automatic loans with a 4-year tenure. No guarantee, No fees, No fresh collateral required. No principal repayment for the initial 12 months.
• 20k Crores benefits for stressed MSME’s. 2 lac MSME’s to benefit from subordinate schemes. Stressed NPA MSME’s will be eligible for this. 
• Funds of funds to infuse liquidity into the MSME’s. It will have a corpus of 10000 Crores. It will help them in expanding their capacities.
• The definition of MSME’s   is changed in favor of MSME’s. Now a change in the definition of MSME.

” Investment limit that defines an MSME is revised to 1crore from 25 lac for the Micro unit. It will be the same for both service and manufacture.  Turnover can be up to 5 crores for a Micro unit

• Government procurement tenders up to 200 crores will not be global tenders. Small units will be able to participate.
• E-market linkage for MSME’s. The CBSE’s and govt of India will pay all MSME dues in 45 days.
• The payment of EPF is given to relaxation. 
• NBFC and HFC: Govt will buy the debt papers. This will infuse liquidity in NBFC’s which are funding MSME’s. These debt papers will be fully guaranteed by govt of India.
• The credit guarantee scheme is expanded. 
• 90000 crores will be released to the Discoms.
• All govt of India agencies will be given 6 months extension for construction works. Government agencies will release the bank guarantees until the percentage of completion.
• Extention of the completion date for registered projects. 

Tax-related relaxations:

• All TDS and TCS rates are reduced by 25%.
• All pending refunds shall be issued immediately.
• Income tax return date extended to 31st Oct 2020. Tax audit also extended to 30th Nov 2020
• Assessments getting barred till 30th Sept 2020 extended till 31Dec. Which we’re getting barred till 31st March 2021,  extended till 30th Sept 2121
• VSVS extended till 31st Dec 2020