Today, the Union Finance Minister Nirmala Sitharaman shared the details of the latest economic package of the government. This economic package focuses on SMEs, farmers, laborers, industries, and the middle-class. In the press conference, Sitharaman said that the banks aren’t stepping down from disbursing loans. A lot of customers are talking about availing loans after the lockdown ends. Thus, sanctioned loans aren’t released yet.
Beneficiaries of the latest Economic Package
Regarding the new change in the definition of MSMEs, Sitharaman said that it will lead to more involvement of businesses in MSMEs. The deadline for the ‘Vivad se Vishwas‘ scheme got an extension up to 30 December 2020. The deadline for tax audits also got an extension up to 31 October 2020. The due date to file ITR (income tax returns) was 31 July but now, it has got an extension till 30 November. The TDS reduction will lead to an infusion of ₹50,000 crore liquidity. The TDS rate cuts will be applicable for all purposes.
Economic Package by Nirmala Sitharaman gave a major relief to contractors with her announcement about contracts. Every central agency will provide an extension of 6 months for goods and services contracts as well as construction contracts. The government will infuse ₹45,000 crore liquidity and bear the first 20% loss. NBFCs can reach out to MSMEs in remote regions as even unrated papers are now eligible for investment. DISCOM (Power Distribution Companies) will have an injection of ₹90,000 crore liquidity. There will be a ‘partial credit guarantee’ scheme for NBFCs. Sitharaman declared a ₹30,000 crore liquidity scheme through HFCs, micro-finance institutions, and debt papers. Due to the latest relief package, about 45 lakh units will be able to provide job security and resume business activity. Sitharaman also announced subordinate debt schemes for NPAs. MSMEs can get collateral-free loans now.
In the next few days, Sitharaman will announce more details regarding the government’s stimulus measures.
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