Announcing India's stimulus package to fight the COVID crisis, Union Finance Minister on Wednesday pushed the due date of all income-tax return for FY 2019-20 from 31st July 2020 & 31st October 2020 to 30th November 2020 and tax audit from 30th September 2020 to 31st October 2020.
1) MSME Definition Change:
1) MSME Definition Change:
-As per the new changes, businesses with an investment of less than Rs 1 crore and a turnover of Rs 5 crore would be classified as micro-enterprises
-The investment limit of small enterprises has been increased to Rs 10 crore, and the companies would have to have a turnover of less than Rs 50 crore
- Collateral-free automatic loan. Facility up to 3 lakh crore. These loans will have a 4-year tenure, 12-month moratorium to be given
What It Was Earlier?
-Earlier, a company with an investment of less than Rs 25 lakh in the manufacturing sector and less than Rs 10 lakh in the services sector were considered micro-enterprises.
2) Rs 30,000 cr special liquidity scheme for NBFCs, HFCs and MFIs
-Rs 30,000 crore special liquidity scheme for non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs)
-Rs 45,000 crore partial credit guarantee scheme for NBFCs
-First 20% loss will be borne by Centre, and even unrated papers will be eligible for investment
3) TDS rate cut by 25%, ITR due date extended:
Also Read: Due Date of Income Tax Returns Extended To Nov 30: FM Nirmala Sitharaman's big announcements
- Cut in TDS (tax deduction at source) rates by 25% for non-salaried section
-TDS rates will be applicable from May 14
- Extended the due date of all income-tax return for FY 2019-20 from July 31 and October 31 to November 30 and tax audit from September 30 to October 31
4) More EPF support for businesses, higher take-home salary for employees:
-Extended EPF support of Rs 2,500 crore for businesses and workers for three more months -- June, July and August
-EPF contribution has been reduced for businesses and workers for three months to 10% from the existing 12%
-Only CPSEs and state PSUs will continue to contribute 12% as the employer's contribution
5)Relief For Real-Estate:
-UTs to extend the timelines of RERA projects by six months in order to provide some relief to the real estate sector
-Authorities are free to issue fresh 'Project Registration Certificates' automatically with revised timelines
-Authorities can also extend timelines for various statuary compliances under RERA concurrently
6)Only Indian Companies To Be Allowed In Tenders Up To Rs 200 Crore
-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 crore
