Economic Package to make India self reliant: Atma Nirbhar Bharat Abhiyan

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News:Union Finance Minister has announced the first tranche of the Atma Nirbhar Bharat Abhiyan to deal with the COVID-19 pandemic.

Facts:

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.
  • MSMEs:
    • 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.