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Announced by FM in the economic package

Smt. Nirmala Sitharaman, Finance Minister, unveiled an economic package worth Rs. 20 lakh crores during a news conference on May 13, 2020, at 4:00 p.m. To combat the COVID-19 crisis, the Economic Package has been announced. On the 12th of May, the Hon’ble Prime Minister made an announcement about the Economic Package worth Rs 20 lakh crores, which is equivalent to 10% of India’s GDP.

He gave a clarion call for the Self-Reliant India Movement. He also outlined five pillars of Atma Nirbhar Bharat –

a) Economy

b) Infrastructure

c) System

d) Vibrant Demography

e) Demand

Prime Minister Shri Narendra Modi had sketched out a comprehensive vision in his address to the nation, Hon’ble FM began her speech. She went on to say that after putting in a lot of effort, the Prime Minister has guaranteed that the inputs gathered from public consultation are included in the economic package to combat COVID-19.

“The focus or goal of the Economic Package is to build a self-reliant India and will be factors for building Atma Nirbhar Bharat Abhiyan”.

Here are the Key point’s announcements made by the FM:

  1. Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
  1. Rs 20,000 crore Subordinate Debt for Stressed MSMEs
  2. Rs 50,000 crore equity infusion through MSME Fund of Funds
  3. New Definition of MSME and other Measures for MSME
  4. No Global tenders for Government tenders of upto Rs 200 crore
  5. Extending the Employees Provident Fund Support for business and organised workers for another 3 months for salary months of June, July and August 2020
  6. EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
  7. Rs. 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
  8. Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
  9. Rs 90,000 crore Liquidity Injection for DISCOMs
  10. Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
  11. Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
  12. Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
  13. Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
  14. Due Dates for various tax related compliances extended.

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