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:-
- a) Outstanding not exceeding Rs 25 crore, and
- 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 |
0.375%
3.75% |
| 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% | |