Prime Minister Narendra Modi said today that Finance Minister Nirmala Sitharaman's announcements would go a long way in addressing issues faced by businesses, especially Micro, Small and Medium Enterprises (MSMEs) hit by the coronavirus crisis and the weeks-long lockdown.
"Today's announcements by the Finance Minister will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit," the Prime Minister tweeted.
Thanking the PM, Ms Sitharaman responded late Wednesday evening by saying under his guidance, the government is laying out the blueprint of his vision for a self-reliant India.
Ms Sitharaman said the government would offer collateral-free bank loans amounting to Rs 3 lakh crore to small businesses as part of measures to combat the damage caused by the coronavirus outbreak.
The allocation is part of a Rs 20 lakh crore fiscal and monetary package announced by PM Modi in a televised address to the nation yesterday.
The government will also cut the tax rate for non-salary payments and provided liquidity to non-banking companies to help them tide over the virus lockdown. Also, dates for filing income tax returns and other assessments have been extended.
The Finance Minister said the rate of tax deducted at source (TDS) and tax collected at source (TCS) for non-salaried payments up to March 31, 2021, would be cut by 25 per cent.
The government has also extended by three months its financial support to companies with less than 100 employees to meet retirement fund obligations.
For all companies, the statutory obligation to pay 12 per cent of basic salary as employer's share to employee provident fund (EPF) contribution has been reduced to 10 per cent to boost their liquidity.
Only Indian companies to be allowed in government tenders up to Rs 200 crore.
"False Narrative": Nirmala Sitharaman On Mamata Banerjee's Mic-Off Claim PM Modi, Amit Shah, BJP Chief Meet Chief Ministers At Party Headquarters PM Modi Shares 'Budget 2024 Blueprint' For A Skilled, Viksit Bharat Student Dies, 2 Others Trapped In Delhi Coaching Centre's Flooded Basement At Olympics Opening Ceremony, Drag Parody Of 'The Last Supper' Draws Flak US Scientists Play God: New Element Created In A Lab Experiment DSSSB Exam Schedule 2024 Released For Recruitment To Various Posts AAP's Atishi Calls For Meeting After Delhiites Complain Of Blue Tap Water Woman Gym Trainer, 21, Killed Inside Delhi Flat Track Latest News Live on NDTV.com and get news updates from India and around the world.