Press Release dated 13 May 2020 – Income tax Date Extended, Audit date extended, Collateral Free loan to MSME, MSME definition is revised, TDS/TCS rate is reduced by 25% on all sections and many more

Leave a Comment / INCOME TAX UPDATES, Uncategorized
                            *Important points of the Press conference of Honorable FM:*
 
👉 *Six major steps for MSME*
1. Collateral Free Automatic Loan to MSME. No guarantee required. Period 4 Years. No principal repayment for 1 year.
2. Stressed MSME: Subordinate Debt 20,000 crore
3. MSME doing viable business: 50,000 cr. equity infusion for expansion
4.     Definition of MSME changed: 
a. Micro: Limit revised upward Investment  upto 1 cr. or  Turnover upto 5 cr.
b. Small: Limit revised upward Investment  upto 10 cr. or  Turnover upto 50 cr.
c. Medium: Limit revised upward Investment  upto 20 cr. or  Turnover upto 100 cr.
d. No difference in manufacturing and service sector for Micro Enterprises
5. Government Tenders: Global tenders will be disallowed upto 200 cr.
6. E market linkage for MSME. Within next 45 days all payments will be made to MSME.
👉 EPF: For June, July and August will be paid by Government (72,22,000 employees will be benefitted). Total Rs. 2500 benefit cr.
👉 EPF: Statutory PF deposit limit reduced from 12% to 10% for next 3 months. (6,750 cr.) (except CG and PSU’s)
👉*NBFC, HFC & MFI*; Rs. 30,000 cr. Special liquidity scheme
👉Partial credit guarantee scheme for NBFC: Rs. 45,000 cr scheme. Govt. of India will be guarantor. 20% will be borne by GOI.
👉 *Discom:* Liquidity crisis. Rs. 90,000 cr. infused for improving Liquidity crises. This amount will be paid by PFC and REC.
👉 *Contractors:* Extension upto 6 months to comply with contract conditions.
👉 *Real Estate:* Coviid 19, an event of ‘Force Majeure’. Registration and Completion extended for 6 months for all projects expiring o or after 25.03.2020
👉 *Direct tax:* 
– TDS rates reduced by 25% of existing rates from tomorrow to 31.03.2021(Non salaried to residents and TCS) Payment for – VSVS extending upto 31.12.2020. pay without any additional amount.
– Pending refunds of charitable trusts, non corporate business, proprietorship, partnership, LLP and society will be issued immediately.
– *Due dates of IT return for FY 2019-20*
Earlier 31.07.2020 & 31.10.2020 Now 30.11.2020
Tax Audit due date: Earlier 30.09.2020  Now 31.10.2020
– *Date of assessment extended*
From those barring on 30.09.2020 to 31.12.2020
From those barring on 31.12.2021 to 30.09.2021
 
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