Finance Minister Nirmala Sitharaman addressing the press conference on May 13, outlined the first tranche of the contours of India’s massive Rs 20 lakh crore fiscal stimulus announced by Prime Minister Narendra Modi.
This package is aimed at all sections of the society such as middle class, farmers, SMEs, laborers, and industries and it is themed under ‘self-reliant India’. On Wednesday, the Finance minister announced a facility of Rs 3 lakh crores collateral-free automatic loans for business, including micro, small and medium enterprises (MSMEs), among other decisions.
Most importantly Sitharaman explained that Banks are not shying away from giving loans but the people themselves say that they will avail loans after the completion of the lockdown period and hence the sanctioned loans are not being distributed.
Key Points:
- Vivad se Vishwas scheme deadline extended till 30 December 2020: FM
- The tax audit deadline has also been extended from 30th September 2020 to 31st October.
- Sitharaman said that Due date for filing income tax returns (ITR) extended from July 31 to November 30
- All pending payments shall be issued immediately
- The TDS deduction will infuse liquidity of ₹50,000 crores as well as the TDS rate cuts will apply for all purposes. It comes into force from tomorrow and untill 31 march 21, TDS, TCS rates by 25%.
- Payment for the contracts, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
- 90,000 crores liquidity injection is announced for Power Distribution Companies (DISCOM)
- The statutory PF contribution is being reduced from 12% to 10% for 3 months
- Under Pradhan Mantri Garib Kalyan Package, payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments and this would be provided earlier for salary months of March, April and May 2020
- This announcement is a definite sigh of relief to the contractors as the Extension of up to 6 months (without costs to the contractor) is provided by all central agencies (like Railways, Ministry of Road Transport and Highways, Central Public Works dept, etc)