Highlights of 20 lakh crore Arthik Package ( For MSMEs )

Prime Minister Narendra Modi in his recent address to the nation unleashed an economic package for the upliftment of Indian Economy. Our nation has a tendency to set itself as a fully independent nation. Hence, prime minister awarded nation with a massive package of 20 lakh crore, it includes every bit of Indian economy. Economists say that this arthik package will be effective to aid the economy fight against the losses caused by the pandemic.

Finance Minister Nirmala Sitaraman announced the detailed vision on the arthik package. Here are the key highlights of the arthik package which you might be in search of.

 

On Economic fallout

• Finance Minister announces a three-month waiver on minimum balance in savings accounts
• Debit cardholders who withdraw cash from any bank ATM can do it free of charge for the next three months: Nirmala Sitharaman
• Economic package to aid those impacted by COVID-19 will be announced soon: FM Nirmala Sitharaman
• The last date to file income tax returns for FY 2018-1 extended till June 30. For delayed payments interest rates reduced from 12% to 9%: FM Nirmala Sitharaman.
• The interest rate on delayed deposit of TDS reduced: FM Nirmala Sitharaman
• Aadhar Card-Pan Card linking last date extended to June 30: Nirmala Sitharaman
• No extra 10% interest will be charged between now and June 30: Nirmala Sitharaman
• Last date of filing GST returns for March, April and May 2020 has been extended to June 30: Nirmala Sitharaman
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• For companies that have less than 5 crore turnover, no interest, no late fee, no penalty will be charged. For bigger companies, late fee and penalty will be null and void but interest will be charged at a subsidised interest of 9%: Nirmala Sitharaman
• Under Sabka Vishwas Yojana, people can now pay their dues till June 30, no extra interest will be charged from them: Nirmala Sitharaman
• Customs clearance now an essential service, till June 30th, 2020 it will be working 24/7
• For newly incorporated companies, additional time of 6 more months will be given to file the declaration of commencement of business
• Mandatory requirement of holding board meetings is being relaxed by a period of 60 days, this relaxation is for the next two quarters: Nirmala Sitharaman
• If the situation does not get better before April 30, we will consider suspending, Section 7, Section 9 and Section 10 of the IBC for a period of 6 months: Nirmala Sitharaman.
• Insolvency & Bankruptcy Code default limit has been increased from Rs 1 lakh to Rs 1 crore: MoS Finance Anurag Thakur
• Go to the bank only if absolutely necessary: Anurag Thakur
• There shall not be any minimum balance requirement fee in bank accounts: Nirmala Sitharaman
• I would like to say that every attention is being given to the economy. The PM himself is closely monitoring the situation. Multi-layered composition of the task force is already working: Nirmala Sitharaman.
  

• The main focus point of this package is Land, Labour,Capital and Enterprises.
• The key focus is to make India self-reliant in every aspect.
• Farmers, MSMEs, labourers, unorganised workers are the pillars for the package.
• 5 pillars: The Economy Infrastructure,tech-driven systems, demography and demand
• Set Indian brand to achieve the global level.

 

Announcements for MSMEs

• Finance minister announced collateral-free loan worth 3 lakh crore to MSMEs sector of the economy of turnover of 100 crores.
•  The loans will follow tenure of 4 years and a 12-month moratorium to be given.
•  These will be 100% credit guaranteed and available till 31st October 2020.
•  Support towards months March, April, May already announced earlier as part of PM Garib   Kalyan scheme; that scheme being extended for another three months (June-August).
•  This liquidity helps struggling NBFCs who need money to carry on with business and help MSMEs.
•  Definition of MSMEs being changed. Investment limit, which defined MSME, is being revised upwards.

 

The detailed blueprint will be in the following article. Atmnirbhar Bharat!!!