New Delhi: The highlights of the special economic package Rs. 20 lakh crore by the Union Government on Tuesday night by Prime Minister Narendra Modi. The Union Finance Minister Sitaraman unveiled an over Rs. 5.5 lakh crore package as the first installment of the “Atma Nirbhar Bharat Abhiyan Yojana Campaign” with a focus on MSMEs.

The Finance Minister’s first package of first day on Wednesday details is as follows:

1. MSMEs

• 3 lakh crore collateral- free automatic loans
• 50, 000 crore equity infusion through MSME fund of funds
• New definition of MSMEs.

1. Investment limit revised upwards, additional criteria of turnover also being introduced

• Global tender to be disallowed upto Rs. 200 crore
• Other liquidity support steps for MSMEs
• MSME receivables from the Government and PSUs to be released in 45 days
• BENEFIT: 45 lakh units can resume business activity and safeguard jobs

2. EPF

• 2500 crore EPF support for business workers extended for a period of three more months
• BENFIT: Provide liquidity relief to 3.7 lakh units and for 72.2 lakh employees
• Statutory PF contribution of both employer and employee reduced to 10% each from existing 12% each for all establishments covered by EPFO for next three months
• CPSEs and state PSUs will continue to contribute 12% as employer contribution
• BENEFIT: Relief to 6.5 lakh units covered under EPFO and about 4.3 crore employees, liquidity relief of Rs. 6, 750 crore to employers and employees over three months

3. Real Estate

• States being advised to invoke Force Majeure clause under Rera
• Registration and completion date for all registered projects to be extended upto six months may be further extended by another three months based on the state’s situation
• Statutory compliances under Rera to be extended

4. TAX RELIEF TO BUSINESS

• Pending I-T refunds to charitable trusts and non-corporate business and professionals to be issued immediately

5. OTHER TAX MEASURES

• TDS rates for non-salaried payment to residents, and tax collected at source reduced by 25% for rest of FY 20- 21
• BENEFIT: Provide liquidity relief of about Rs. 5, 000 crore
• Date of all income tax returns for assessment year 2020-21 extended to November 30, tax audit date extended to October 31^st
• Date of payment without additional amount under “Vivad Se Viswas” scheme extended to December 31^st