New Delhi: The Union Government unveiled an over Rs. 5.5 lakh crore package on Wednesday as the first installment of the “Atma Nirbhar (Self-reliant) campaign” with a focus on MSMEs. It seem as key employers of unskilled, semi- skilled labourers who have borne the brunt of the lock down clamped to fight Covid- 19. The Finance Minister extended the date for filing tax returns for the assessment year 2019/ 20 as well as for tax audits to October 21. And also extended late filing with fine is called a scheme “Vivad Se Viswas” extended upto December 31^st, 2020.

Union Finance Minister Nirmala Sitaraman in a press conference on Wednesday said that the goal is to build a self-reliant India that is why the economic package is called “Atma Nirbhar Bharat Abhiyan”. She pointing to Modi’s emphasis, the focus would be on land labour liquidity and laws. She also said beginning today, for the next few days, I shall be coming here with the entire team of the Ministry of Finance to deal the PM’s vision for “Atma Nirbhar Bharat Abhiyan”.

There were measures for NBFCs and real estate as well. A day after Prime Minister Narendra Modi announced Rs. 20 lakh crore stimuli. Union Finance Minister Nirmala Sitaraman discloses plans to provide liquidity to small and medium enterprises and also initiate reforms that would redefine the sector and encourage firms to shut their fears of “Growing bigger”, change in status that has previously entailed laws of benefits available to the sector. The package focused largely on providing cash for the MSME sector, NBFCs, housing, finance firms, micro-finance companies as well as reducing tax deducted at source and tax collected at source rates to ensure more money in the hands of tax payers.

This will not apply to salaried people but help contract payments and those drawing professional fees. The centerpiece was Rs. three lakh crore collateral free automatic loans for businesses and the MSME sector, which would help nearly 45 lakh units in the segment and potentially a few crore workers. The definition of MSME was changed with an increase in the investment limit as well as introduction of an additional criterion of turnover. The Finance Minister said that the Government would amend the laws soon to implement the changes. Global tenders upto Rs. 200 crores will also be disallowed to help MSMEs get a share of the business and not lose out to bigger players.

The steps announced will boost liquidity, empower entrepreneurs and strengthen their competitive spirit, said Modi in his twitter. The Finance Minister also announced a reduction in the PF contribution of employers and employees for the next three months and extended by three months the scheme introduced as part of PM Garib Kalyan Yogana under which the Government contributes 12% of the salary each on behalf of both the employer and the employee to the EPF for those earning less than 15K per month in units with less than 100 workers.