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The Hon’able Finance Minister Nirmala Sitharaman announced on 13^th May, 2020 the first set of relief measures under the government’s Atmanirbhar Bharat Abhiyan—India’s Rs 20 lakh crore Covid-19 economic package.The highlights are as follows.

1. Income Tax
   • Extension of Due Dates For Income Tax Returns
     The due dates for filling Income tax Returns for FY 2019-20 (A.Y. 20-21) will be extended to 30^th November,2020 from 31^st July and 31^st October.Further the due date for tax audit has been extended to extended to 31^st October,2020 from 30^th September,2020
   • Rate of TDS and TCS reduced
     TDS for non-salaried payments made to resident and TCS rate are reduced by 25% of existing rate from 14^th May, 2020 till 31^st March, 2021. The payment of contract, professional fees, interest, rent, dividend, commission and brokerage shall all be eligible for the reduced rate. For e.g. TDS Rate for Indian resident person providing professional services  is 10%. It will be 7.5% from 14.05.20 to 31.03.21.
   • Pending Income tax refunds.
     All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
   • Date of assessment extended.
     Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
   • Date of Vivad se Vishwas Scheme extended.
     Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020 from earlier 30^th June,2020.

 

2. Real Estate Sector

Extension of Registration and Completion Date of Real Estate Projects under RERA:

Real estate developers allowed to invoke ‘force majeure’ clause treating COVID-19 as an event of ‘Force Majeure’.   The registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 will be extended without individual applications by 6 months. If needed Regulatory Authorities may extend this for another period of up to 3 months. Issue fresh ‘Project Registration Certificates’ automatically with revised timelines. Accordingly, home buyers are able to get delivery of their booked houses with new timelines.

 

3. Relief To Government Contractors
   All contractors to central agencies like railways, road ministry, and central public works department can be given an extension of up to 6 months without any additional costs. This covers construction works and goods and services contracts. It will cover obligations including completion of work, intermediate milestones and extension of the concession period.

Government agencies to release partial Bank Guarantee

Government agencies will release partial Bank Guarantee, to extent of partial completion of work.

4. Global tenders to be disallowed up to Rs 200 crores.
   Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, Global tenders will be disallowed in Government procurement tenders up to Rs 200 crores. Necessary amendments of General Financial Rules will be effected.

 

5. Definition of MSMEs will be revised.

Existing MSME Classification Criteria – Investment in Plant and Machinery
Classification	Micro	Small	Medium
Mfg. Enterprises	Investment <Rs 25 lacs	Investment <Rs 5 crores	Investment <Rs 10 crores
Service Enterprises	Investment <Rs 10 lacs	Investment <Rs 2 crores	Investment <Rs 5 crores
Revised MSME Classification Composite Criteria – Investment and Annual Turnover
Manufacturing and Service enterprises	Investment < Rs 1 Cr.  and Turnover < Rs 5 Cr.	Investment < Rs 10 Cr.  and Turnover < Rs 50 Cr.	Investment < Rs 20 Cr.  and Turnover < Rs 100 Cr.

 

6. Collateral-free loans, backed by the central government, of up to Rs 3 lakh crore have been introduced for MSMEs.
7. Up to Rs 20,000 crore liquidity support through subordinate debt for stressed MSMEs.
8. A fund of funds of up to Rs 50,000 crore for equity support to MSMEs with growth potential.
9. EPFO support provided by central government has been extended for another 3 months till August 2020.
10. A special liquidity scheme of up to Rs 30,000 crore has been announced for NBFCs, housing financiers and micro financiers.
11. Partial credit guarantee scheme for NBFCs has been expanded.
12. Power distributor companies will be given a liquidity injection of Rs 90,000 crore to pay off their dues to power generation firms.

These reliefs are in addition to earlier measures announced by the Finance ministry in March,2020. Read about it by clicking the below links

English Version

Marathi Version

May 14, 2020 - Blog - Team SSB

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