Highlights on PM's Aatmanirbhar Economic Package by F.M Nirmala Sitharaman Dated 13.May.2020

In this pandemic when other countries are fighting against the COVID-19, Our Hon’ble Prime Minister yesterday has announced Aatmanirbhar Bharat Abhiyan Package Scheme for the nation's growth and in order to build a Self-Reliant India. It is an initiative of Government who has come up with a saying "Vocal for Local" that has a deep meaning concerning the depth of the business expansions and for the entrepreneurs. Further, PM has introduced a package of 20 Lacs Crores i.e. equivalent to 10% of India GDP.

Apart from this the 5 Pillars of the self dependent India has been introduced, which were given below:

1. Economy, 

2. Infrastructure,

3. Governing systems, 

4. Vibrant demography and

5. Supply chain.

Further, more emphasis has been given to the manufacturers, MSME's and the small businesses for the expansion. The e-commerce business has played an important role in this lockdown and they earned well in this pandemic so the opportunities will also be given to the e-commerce businesses. 

Key highlights of the package which is reserved for different sectors in different quantum, which are as follows:

1. Collateral free automatic loans worth Rs 3 lakh Crore will be provided. Tenure is for 4 years and is 100 percent ensured. This will last till October 21, 2020.

2. Rs 20,000 Crore will be infused through subordinate debt for stressed MSMEs who have equity problems.

3. Funds of fund will infuse Rs 50,000 Crore equity for those MSMEs who have potential and are viable who need financial hands due to Covid-19. More flexible and appropriate market platform to these MSME’s as well.

4. Change in MSME definition with the purpose of their expansion and the criteria of turnover has been introduced along with the capital investment.

5. Worldwide tenders to be denied in Government procurement upto Rs 200 Crore. Indian MSMEs and other companies have regularly faced unreasonable rivalry from foreign companies, this will make self-reliant India, will likewise then have the option to serve 'Make in India'.

6. Easation policy for Trade fairs and exhibition or in E-commerce. And all the payments deferred from government department will be given within 45 days from the date of this announcement.

7. Liquidity relief of Rs. 2500 Crore for MSME is given for next 3 more months (June, July and august). EPF contribution will be provided by Government of India on behalf of employer and employee.

8. Reported a benefits to Non-banking finance companies (NBFCs), Housing finance companies (HFCs) and Micro-finance institutions (MFIs) of Rs 30,000 Crore special liquidity scheme and an extension of the partial credit guarantee scheme worth Rs 45,000 Crore under which the initial 20% loss shall be borne by government.

9. Help to Discom or Electricity Manufacturing or distributing department via emergency liquidity injection Rs 90,000 Crore against all the receivables or receipts along with State Issuing Guarantees.

10. Help to contractors in every field like construction, Railways, Transports, 6 months’ time extension in contracts, Partial bank guarantees will also be released according to partial work done so far.

11. Real Estate Matter: Ministry of Housing Development shall issue advisory of clear picture of treating measures of COVID to states and also suggest them regarding the extension of time for Project Certificate expiring on 25/03/2020. Officer may suo moto extend the certificate for time period for 6 months, no need to apply for extension.

12. Direct Taxation reliefs

• TDS or TCS rates to all Non-salaried residents, rent or to indicated candidates will be diminished by 25%, coming into power from 14/05/2020 to 31/03/2021.
• All pending refunds to beneficent trusts and non-corporate business and professions shall be given quickly (Including LLPs, Partnership, proprietorship, Co-operatives).
• Due date of ITR for F.Y. 2019-2020 from 31/07/2020 or 31/10/2020 to 30/11/2020 and tax audit date shall be extended from 30/09/2020 to 31/10/2020.
• Date of Assessment Debarring on 30/09/2020 shall be extended 31/12/2020, Debarred as on 31/03/2021 are extended to 31/09/2021.
• Vivad se Vishwas Scheme: Extension shall be given till 31/12/2020 regarding payment.

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