MSMEs Current Affairs - 2020

Pending Income Tax Refunds of Rs 62,361 crore paid to a total of 20,44,597 Taxpayers from 8th April to 30th June

Not only to health and freedom of movement, but the COVID-19 pandemic has also made a much larger financial impact on the economy for individuals and business entities (including MSMEs) across the world. Between 8th April to 30th June 2020 which had a total of 56 weekdays (Monday to Friday), the Income Tax Department of India has made 76 tax refunds per minute.

In total, more than Rs 62,361 crore has been refunded to Individual Taxpayers and Business Entities during this time period.  The complete Rs 62,361 crore of refunds were directly transferred into the bank accounts of the taxpayers.

19,07,853 Individual Taxpayers were paid a refund amounting to Rs 23,453.57 crore while 1,36,744 Business Entities were refunded a total of Rs 38,908.37 crore.

Background

On 8th April 2020, the Department of Revenue (under Union Ministry of Finance) issued a press note under which for Individual Taxpayers-all pending income tax refunds of up to Rs 5 lakh were asked to be refunded,  while for business entities-GST and Customs Refunds pending were also asked to be refunded to the Income Tax Department for providing immediate financial relief.

‘At One Click’ Initiative launched by Gujarat Government for MSMEs & Other Bigger Industries

For 12,247 Micro, Small, and Medium Enterprises (MSMEs) and bigger industrial units (including the textile industry) in the state, the Gujarat Government on 26th June 2020 has launched an online cash aid initiative. The initiative is named as ‘At One Click’. The initiative was launched by the Chief Minister of Gujarat Vijay Rupani.

About the Initiative

‘At One Click’ is an online aid initiative for which the Gujarat Government has committed Rs 1,369 crore of financial aid for the MSMEs and bigger industrial units (including the textile industry).

Objective of the Initiative

Through the initiative, the State Government looks to restore the former vibrancy of the state by motivating sectors such as MSME, traders, bigger industries, and businesses. The online initiative is to encourage these sectors for taking up the challenge that the COVID-19 crisis has bought and convert this into an opportunity.

Launch of the Initiative

By transferring Rs 768 crore directly into the bank accounts of 12,247 MSMEs the initiative was launched. Bigger industrial units that include textile industries as well will be transferred Rs 601 crore under the initiative.

The Chief Minister at the launch of the initiative has informed that 1.3 lakh loan applications from MSMEs and other industries have been received in the state under the Atma Nirbhar Bharat Package of the Central Government. The total loan amount of Rs 8,200 crore has been sanctioned as per the applications received to date, out of this, Rs 4,175 crore has already been disbursed.