A day after Prime Minister Narendra Modi announced a Rs 20 lakh core financial package, finance minister Nirmala Sitharaman addressed a presser today, outlining the specifics.
Bengaluru: Finance minister Nirmala Sitharaman addressed the media this evening to build on the financial package (Rs 20 lakh crore) announced by Prime Minister Narendra Modi on Tuesday.
She informed the gathering that they will share the PM's vision for a self-reliant India in the next few days, beginning today.
Change in definition of MSMEs:
One of the most notable changes the FM announced was the change of the definition of MSMEs.
She said, “Investment limit which defined an MSME has been revised upwards to Rs 1 crore as compared to Rs 25 lakh earlier.”
Boost to Make in India project:
In a huge fillip to Make in India project, the finance minister added that global tenders will be disallowed in government procurement up to Rs 200 crores. She added that this would make India self-reliant.
Greater take-home salary:
Another important decision taken to help employees take home a greater salary, the government cuts EPF contribution from the employer and employee from 12 per cent to 10 per cent. The government will however continue to pay 12 per cent as its contribution towards EPF.
Government launches a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs:
Government launches a Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies, microfinance companies, housing finance companies.
Help for cash-starved discoms:
For cash-starved discoms, the government announces a liquidity injection of Rs 90,000 crores. This is a one-time provision for infusion of money against their receivables.
6-month extension for contractors:
FM said: "In a major relief to contractors, all central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.”
TDS, TCS rates reduced by 25% till March 31, 2020:
The government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25 per cent of the existing rates.
Due dates of IT returns extended:
Among other measures, the due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020 and tax audit from 30th September 2020 to 31st October 2020.
Last Updated May 13, 2020, 5:27 PM IST