News:Union Finance Minister has announced the first tranche of the Atma Nirbhar Bharat Abhiyan to deal with the COVID-19 pandemic.
Key Features of the Package:
- Real Estate:The deadline for completion of projects has been extended by up to six months treating the coronavirus outbreak as an event of ‘force majeure’ under the realty law RERA.
- Force majeure refers to extraordinary events and circumstances beyond human control.
- It is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.
- Income Tax: Tax Deducted at Source(TDS) and Tax Collected at Source (TCS) have been reduced by 25% till 31st March of next year.
- Employees Provident Fund(EPF):The statutory provident fund contribution by both employers and employees has been reduced to 10% of basic wages from the existing 12% for the next three months.
- Power distribution companies:Government will infuse liquidity of Rs 90,000 crore to the discoms that got affected due to COVID-19 crisis.
- Government will provide ₹3 lakh crore collateral free loan schemes for businesses especially micro, small and medium enterprises(MSMEs).
- Centre will facilitate provision of ₹20,000 crore as subordinate debt for 2 lakh MSMEs which are stressed or considered non-performing assets.
- E-market linkage and Fintech will be used to enhance transaction based lending using the data generated by the e-marketplace.
- The definition of an MSME is being expanded to allow for higher investment limits and the introduction of turnover-based criteria.