Finance Minister reveals details of India’s Rs 20 lakh crore economy vision

Prime Minister Narendra Modi, while addressing the nation on Monday said that Rs 20 lakh crore has been set aside for revival of Indian economy. Union Finance Minister Nirmala Sitaraman provided details about the package at 4 pm on Tuesday.

The Finance Ministry held discussions with all the industries across India. The plans will be based on Modi’s five pillars for India which includes economy, infrastructure, demographics, technology and demand.

Take a look at the top excerpts from Sitaraman’s Atma Nirbhar Bharat Abhiyan package

• An extension has been provided for filing income tax returns. The date has been extended from 31 July to 30 November. This will also be the dates for the financial year 2019-20.

• Definition of Ministry of Micro, Small and Medium enterprises (MSMe) has been revised. The investment limit has been revised upward and additional criteria of turnover has been introduced. The distinction between manufacturing and service sector has also been eliminated. The investment limit of Rs 25 lakh for micro units has been increased to Rs 1 crore.

• Collateral free loans worth Rs 3 lakh crore with 100 percent guarantee by the government will be provided to MSMe’s. Businesses with upto Rs 25 crore outstanding loan or up to Rs 100 crore turnover are eligible for the scheme which is expected to benefit 45 lakh MSMe’s. The scheme can be availed till 31 October, 2020.

• Finance ministry has reduced TDS rates for non-salaried payments and TCS rates by 25 percent till 31 March, 2021. The payment for professional fees, commission, dividend, rent, professional fees and brokerage shall be eligible for the reduced rate. The measure will infuse liquidity of Rs 50,000 crore.

• Schemes will focus on the needy including disabled people, migrant workers and others from economically backward families.

In his speech, Modi has stressed on the importance of India being self-reliant as a measure to tackle the COVID-19 pandemic. Sitaraman stressed that being self-reliant does not mean India has to be isolated. It is going to be a measure taken to promote local brands and businesses. She further added that more details about the Rs 20 lakh package will be announced in the coming few days.