Government of India has announced the much awaited Economy package to fight with Covid 19. The total packages to fight COVID 19 is 20 lacs crores including declared earlier packages also. At Aera, the government announcement are good for the economy . the execution part has to be seen We have put a small note for announcement and we will work with our clients to help to get those benefits. Please let us know if you need any clarity.

1. GOVERNMENT ECONOMY PACKAGE IN
RESPONSE TO COVID 19 - 13TH MAY 2020
REVIVING - INDIA

2. DISCLAIMER
The materials contained in this document are intended for general reference and do not constitute
advice from Aera Consultancy and Services Private Limited (Aera). Readers of these materials
who have specific questions regarding the matters discussed herein are encouraged to contact
Team Aera. The materials may be updated as new developments emerge but readers should
recognise the rapidly evolving nature of the underlying subject matter.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the date
it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the particular
situation.
For any questions please contact: info@aera.co.in

3. GENERAL INFORMATION : THE MEASURE ON 13TH MAY 2020 AMOUNT TO A FURTHER EXTEND GOVERNMENT AND INSTITUTION
SUPPORT UPTO RS 20 LACS CRORES INCLUDING FINANCIAL, COMPLIANCE , INVESTMENT & GUARANTEE LOAN -ABOUT 10% OF GDP
▸ MSME
1. Collateral free automatic loan : For MSME and Business, 4 years tenure with 1 year moratorium and
guarantee cover to Banks and NBFCs on principal and interest
- Scheme upto 31st October 2020
- Interest rate to be capped
2. Subordinate Debt for Stressed MSME : For stressed MSME, subordinate debt provision
- Promoter of the MSME will be given debt to infuse as Equity in the entity
3. Equity Infusion for the MSME : For Equity participation in MSME with viable business, Fund of funds will
be created
- Will help to expand MSME size
- Will encourage listing of MSME on main board of Stock Exchange

4. ▸ MSME
1. Definition of MSME has been revised. Investment and turnover limit has been revised upward
2. No distinction between Manufacturing and Service Sectors
3. Global tender by Government upto Rs 200 crores has been allowed only for MSME and Indian
Companies. Foreign companies will be disallowed to participate
4. E-Market linkage for MSME
5. Fintech will be used for MSME for lending
6. MSME receivable from Govt. and Central Public Sector Enterprises (CPSE) within 45 days.

5. EMPLOYEE
▸ Employee Provident Fund
1. EPF Support : Under Pradhan Mantra Garib Kalyan Package, payment 12 % of Employer & 12% of
Employee into EPF Account is made by Government of India for Three months from March to May 2020.
was made into EPF . Eligible for this scheme upto 100 Employees and 90% employees earn upto Rs.
15,000 pm
- This scheme is extended for 3 more months till Aug 2020
2. Reduction in EPF Contribution : Under this , the contribution of EPF will be reduced to 10% instead of
12% for both Employer and Employee.
- This scheme will be available for all organisation not covered under the
above EPF support under Pradhan Mantra Garib Kalyan Package
- This scheme will be for 3 months ie from June 2020 to August 2020

6. DIRECT TAX
1. Reduction of TDS and TCS rates to 25% of existing rate. This will be applicable till 31st March
2021. It will not be applicable for Salary TDS.
2. All refunds to charitable trust and non- corporate business and professions such as proprietorship,
partnership, LLP and co-operative societies will be issued immediately.
3. Filing of Income tax returns due date extended from 31st July and 31st Oct to 30th November
2020
4. Tax Audit Report due date extended from 30th September 2020 to 31st Oct 2020
5. Vivav Se Vishwas Scheme extended upto 31st Dec 2020. No additional payment under the
scheme.

7. OTHER MEASURES
1. For NBFC, Housing Finance Companies(HFC) and Micro Finance Companies(MFI) :
1. Special Liquidity Scheme for HFC and MFI ,fully guaranteed by Government.
2. Partial credit guarantee scheme for NBFC
2. For Electricity Distribution companies (DISCOM) :
1. Emergency Liquidity injection to pay to Electricity Generation company
3. For Government Contract :
1. 6 months extension to contractors with Central Government agencies contract
4. For Real Estate :
1. Advisory to states and Union Territories, they could treat covid-19 period as force majeure or vis major in
execution of contract signed.
2. Extension for Completion date by 6 months automatically