Atmanirbhar Bharat Abhiyan (Self-Reliant India)
- Mahesh V
- Aug 11, 2020
- 2 min read
The Finance Minister, as a part of the Atmanirbhar Bharat Abhiyan (Self-Reliant India) Scheme, has announced various measures yesterday which are as follows:
Tax Measures
1. TDS and TCS rates reduced by 25% on non-salaried payments up to 31 March 2021.
2. All pending refunds to charitable trusts and non-corporate taxpayers (but including LLP) will be issued immediately.
3. Due date for all income tax returns to be 30 November 2020 and tax audit due date to be 31 October 2020.
4. Assessments getting barred on 30 September 2020 will get barred on 31 December 2020. Cases getting barred on 31 March 2021 will get barred on 30 September 2021
5. Vivaad se Vishwaas scheme extended up to 31 December 2020 without any extra payments
MSME measures
1. Collateral free automatic loans with 4 year tenor with 12 months moratorium on principal repayment with interest to be capped. 100% credit guarantee on principal and interest. Scheme valid till 31st Oct 2020.
2. Subordinate Debt for stressed MSMEs (which are NPA or are stressed)
3. Fund of funds to be created for equity infusion (those which are viable)
4. Definition of MSMEs being changed in favor of MSMEs. Limits on investments to be revised upwards. Additional criteria based on turnover also will be introduced. Differentiation between manufacturing and service units to be removed. New definition is as follows:
Micro units - Investments up to 1 Cr and Turnover up to 5 Cr
Small units - Investments up to 10 Cr and Turnover up to 50 Cr
Medium units – Investments up to 20 and Turnover up to 100 Cr
5. Government tenders up to 200 Cr will no longer be on global tender basis to ensure that MSMEs are eligible to participate in Government purchases
6. Post Covid, e-market linkage to be provided for all MSMEs. Receivables by MSMEs from the Government will be cleared in next 45 days
EPF Measures
1. Liquidity relief for all EPF establishments (less than 100 employees with 90% drawing less than 15k). 12% of employer contribution and 12% employee contribution was borne by Government for March April and May. Additional 3 months support to be provided by contributing total 24% for June July and August.
2. For other establishments, employers need to contribute 10% (vs 12% earlier) to EPF. Not applicable to Govt. and PSU enterprises
Others
1. Urban Development Ministry to issue advisories for regulators to announce Covid 19 can be used to invoke Force Majeure on contracts signed. All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6m without specific applications for it
2. 30k Cr liquidity scheme through Investment grade debt papers of NBFC, HFC and MFI fully guaranteed by GoI.
3. 45k Cr through partial credit guarantee scheme scope expansion. AA rated papers and below including unrated papers will be included under the scheme. First 20% loss to be borne by GoI.
4. One time Emergency liquidity infusion - 90k Cr to all discoms against all receivables. Gen Cos should give rebates to discoms for passing on to consumers
5. Ongoing public works - Concessional period to be extended by 3-6m for contractors. Govt agencies will partially release bank guarantees for partially completed contracts
Download a copy of the Atmanirbhar Presentation herewith for your information.
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