Vivad Se Vishwas Yojna: Financial Infusion for New India

What do you need to know about Vivid Se Vishwas Yojna?

On February 1, 2020, The Union Finance Minister of India, Nirmala Sitharaman, announced the ‘Vivid Se Vishwas Yojna’ plan during her budget speech and on February 5, 2020, it was tabled in Lok Sabha. The objective of ‘Vivid Se Vishwas Yojna’ is to resolve a dispute related to direct tax returns. It also aims to settle the humongous amount of unresolved direct tax cases. This scheme proposes a complete waiver on interest and penalty to the taxpayers who pay their impending taxes by March 31, 2020.

Still, if a taxpayer cannot the disputed amount by March 31, 2020, they will get an extended time till June 30, 2020. In that case, that particular person would have to pay the 10% more of the tax. This scheme is similar to the ‘Indirect Tax, Sabka Vishwas’ project initiated by the Finance Minister in her 2019 budget representation. The purpose of this scheme was to decrease the disputes associated with excise and service taxes. ‘Vivid Se Vishwas Yojna aims to resolve 483,000 direct-tax related disputes, which are pending in the appellate forum.

Intellectual Property Rights

The legal rights of the author or owner to secure their creation, invention, artistry, designs and symbols, and literary works are termed Intellectual Property Rights (IPR). These rights refrain other people from using or taking the owner’s ideas or work without permission and permit them to sue anybody who uses their work or vision illegally. IPR also empowers the producer of the product to get recognized and benefit economically from it. Some of these IPR are:

1. Copyright– This right does not protect the impression or concept of the creation but the tangible or concrete form. It allows the creator to sell directly, publish, modify their work. Some of the examples are songs, literary work or architecture.
2. Patent shields creation or invention from being created without the permission of the intellect or owner of that idea. It grants the author the right to commercialize their product or license its invention to another person on mutual terms.
3. Trademark- A trademark can be a design, phrase, word, logo or symbol. It allows the consumer to distinguish or identify the specific product the company produces from another. Unlike the patent or copyright, they protect the set of the product and does.t expire.
4. Trade Secret- These are the strategies, information and formulas which are kept confidential and are not allowed for unauthorized use. They are kept confidential and increase the competitive quality of the business.

Types Of Loans

• Micro, Small and Medium Enterprise Loan(MSME)- These are unsecured loans given by the financial institutions to support small businesses or start-ups financially and in other compartments.
• Micro Units Development and Refinance Agency Loan(MUDRA)– The Honorable Prime Minister of India, Mr Narendra Modi, announced this loan scheme in February 2015. In this scheme, an individual, MSME and start-ups can avail the maximum loan amount of up to 10 Lakh Rupees. It is fractioned into three parts; Shishu, Tarun and Kishor; no collateral or security is essential by the banks to acquire MUDRA Loan.

Shishu Mudra Yojna: In this scheme, a person or a small enterprise can get financial aid up to Rs.50,000 with an interest rate of 1% to 12% per annum with a tenure of 5 years.

Kishore Mudra Yojna: This yojna offers loans to sustain businesses up to Rs. 5 Lakh with an interest rate ranging from 8.0% to 11.5% or more based on the guidelines.

Tarun Mudra Yojna: Under PMMY, this yojna provides a loan from 5 Lakh to 10 lakh with the interest of 11.5% to 20% or more decided by the lender. The lender also settles the repayment tenure.

• Credit Guarantee Fund Trust for Micro and Small Enterprise(CGTMSE)- Launched in 2000, CGTMSE was set up by the Government of India, Ministry of Micro, Small and Medium Enterprise(MSME) and Small Industries Development Bank of India(SIDBI). It ensures the collateral-free loan of the maximum amount of Rs. 2Cr. to the small businesses, start-ups and individuals who want to expand their business to strengthen the credit system. Under this scheme, both new and existing small and micro enterprises can avail of this loan. This scheme mainly supports the small industry sector.
• Credit Linked Capital Subsidy Scheme(CLCSS)- With the world advancing in technology, businesses must progress through technology to produce the desired output. CLCSS scheme offers a 15% subsidy to invest in high-tech equipment. Being the cost of machinery and equipment expensive, the ministry of Micro and Small Enterprise initiated this scheme to provide financial support to the small and micro businesses to upgrade their machinery and equipment. The main target of this scheme is to supply economic aid to the small and micro enterprises situated in rural areas for them to improve their technology-based machinery.
• National Small Industries Corporation- The government established it in 1955 to support and promote the growth of SMEs. It is ISO certified enterprise and managed all over the country with the assistance of networks, technical centres and offices. 

Article Proofread and Edited by Shreedatri Banerjee