Atma Nirbhar Bharat Abhiyan Scheme

Atma Nirbhar Bharat Abhiyan Scheme


The Finance Minister of India, Smt. Nirmala Sitharaman has recently announced Aatmanirbhar Bharat Abhiyaan. As per this scheme the Government has broadened the definition of MSMEs;

Particulars Investment Limit Turnover Limit
Micro Enterprises 1Cr 5Cr
Small Enterprises 10Cr 50Cr
Medium Enterprises 20Cr 100Cr

As per this scheme;

  • The due date of all Income Tax Returns for A.Y. 2020-21 has been extended to 30th Nov 2020.
  • The due date of Tax Audit  for Assessment Year 2020-21 has been extended to 31st Oct 2020.
  • Emergency Working Capital Facility for MSMEs –20% of the outstanding loan without any additional collateral. Subject to the following conditions:-
  1. a) Outstanding not exceeding Rs 25 crore, and
  2. b) Turnover not exceeding Rs.100
  • Subordinate debt  for NPA or stressed MSMEs – Banks are expected to provide subordinate debt to the promoters of such MSMEs equal to 15% of his existing stake in the unit subject to a maximum of Rs 75 lakhs.
  • Statutory PF contribution of both employer and employee reduced to 10% each from existing 12% for the months of June, July and August 2020.

Revised TDS rate

Sl. No             Section Revised TDS rate w.e.f. 14th May 2020 Exemptions
1 194 – Dividend 7.5% Upto Rs. 2,500/- p.a. if it is paid through account payee cheque.
2 194A – Interest other than interest on securities. 7.5% Rs.5,000/-p.a other than banks & Rs.40,000/-p.a in case of banks (Rs.50,000/- in case of senior citizens).
3 194C – Payment of Contractors and Sub-contractors 0.75% for Individuals & HUF

1.5% for others

Rs. 30,000/- to a contractor for a single contract.

Rs. 1,00,000/- to a contractor in a year

4 194EE – Payments in respect of deposits under National  Savings Scheme 7.5% Rs. 2,500/-
5 194G – Commission, prize etc. on sale of lottery tickets. 3.75% Rs. 15,000/-
6 194H – Commission or brokerage 3.75% Rs.15,000/-
7 194-I(a) – Rent for Plant and Machinery 1.5% Rs. 2,40,000/-
8 194-I(b) – Rent for immovable property 7.5%
9 194-IA – Payment on transfer of certain immovable property other than agricultural land 0.75% Rs.50 Lakhs
10 194-IB – Payment of rent by individual or HUF not liable to tax audit 3.75% Rs.50,000/- p.m
11 194J – Fee for professional or technical services(FTS) 1.5% (FTS, certain royalties, call centres), 7.5% for others Rs.30,000/-p.a.
12 194M – Payment of commission brokerage, contractual fee, professional fee to a resident person by an Individual or HUF who are not liable to deduct TDS under section 194C,194H,or 194J. 3.75% Tax shall be deducted under section 194M when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.
13 194N – Cash withdrawal by a person from his accounts 1.5% in excess of Rs. 1 crore
In case the receiver of the money has not filed income tax return for three years immediately preceding the year, then the TDS is 1.5%% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore, and 3.75% for withdrawal exceeding Rs 1 crore.

Revised TCS rate

Sl. No             Section Revised TCS rate w.e.f. 14th May 2020
1 206C(1) – Alcoholic liquor for human consumption 0.75%
2 206C(1) – All forest produce other than tendu leaves 1.875%
3 206C(1) – Tendu leaves 3.75%
4 206C(1) – Sale of Minerals, being coal or ignite or iron ore 0.75%
5 206C(1) – Sale of Scrap 0.75%
6 206C(1C) – Grant of license, lease, etc. of Parking lot 1.50%
7 206C(1C) – Grant of license, lease, etc. of Toll Plaza 1.50%
8 206C(1C) – Grant of license, lease, etc. of Mining & quarrying 1.50%
9 206C(1F)- Sale of motor vehicle above 10 lakhs . 0.75%
10 206C(1G) – Overseas tour travel package 3.75%
11 206C(1G) – Remittance of Forex under LRS of Rs. 7 lakh or more in a financial year. If it is for repayment of loan obtained for the purpose of pursuing any education

In any other case




12 206C(1H) – Sale of goods in excess of Rs. 50 lakh, other than mentioned in subsection 1, 1F and 1G. (This section is applicable to a person whose turnover in the previous F.Y. exceeds Rs. 10 Cr.) 0.075%


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