This Article is From May 13, 2020

10 Big Takeaways From Nirmala Sitharaman's Briefing On Economic Package

Finance Minister Nirmala Sitharaman announced some of the details of the government's Rs 20 lakh crore economic relief plan for the coronavirus crisis.

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India News Reported by , Edited by

The coronavirus crisis has driven lakhs of people out of work in India.

Union Finance Minister Nirmala Sitharaman on Wednesday gave some details of the Rs 20 lakh crore COVID-19 economic relief plan announced by Prime Minister Narendra Modi, stressing on a slew of measures to help micro, small and medium enterprises (MSMEs) battered by the coronavirus crisis. She said more details of the relief package will be announced in the next few days.

Here are the 10 big takeaways from the Nirmala Sitharaman's briefing:

  1. Employee Provident Fund (EPF) contribution for private employers reduced by 2 per cent for three months; will increase take-home salaries.

  2. Collateral-free, automatic loans worth Rs 3 lakh crore for MSMEs; expected to help 45 lakh businesses.

  3. Definition of MSMEs changed; slabs raised to ensure more businesses get benefits.

  4. Only Indian companies to be allowed in government tenders up to Rs 200 crore.

  5. Rs 90,000 crore one-time infusion of liquidity for power distribution companies or DISCOMs.

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  7. Extension of up to 6 months for all central government contractors.

  8. COVID-19 can be treated as "force majeure" for real estate sector, freeing companies of liability.

  9. TDS (Tax Deduction at Source) and TCS (Tax Collection at Source) rate reduced to 25 per cent effective May 14, 2020 to March 31, 2021; will increase liquidity by 50,000 crore.

  10. Due date for Income Tax returns extended to November 30, 2020.

  11. Period of making tax payments without additional amounts will be extended to December 31,2020 under "Vivaad se Vishwaas" scheme.

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