After announcing measures for MSMEs, Finance Minister Nirmala Sitharaman on Wednesday turned her attention to EPFs, TDS and taxatio-relation issues.
Finance Minister also sought to clear the air around Prime Minister’s self-reliance call, saying it does not mean that India will look only inwards and become an “isolationist” country.
Here’s what she said about EPF, Taxation and Real Estates
– Government to pay Rs 2,500 crore as an employee-employer contribution to EPF; scheme extended till August.
– Statutory PF contribution by employer reduced to 10 pc from 12 pc earlier; to provide Rs 6,750 cr liquidity relief
– Liquidity relief is being given for all establishments
– EPFs support extended by another three months.
– In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses and workers for 3 months,
– 72.22 lakh employees will benefit
– For the Central and State PSUs, it will remain 12 percent.
Nirmala Sitharaman: Collateral-free automatic loans to be provided to MSMEs with 12-month moratorium
Sitharaman said that the package is to build a very self reliant India, however, it does not mean India will be an isolationist country.
Government launches a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
– Under the scheme, investment will be made in both primary and secondary market transactions in the investment-grade debt paper of NBFCs/HFCs/MFIs
– Securities will be fully guaranteed by the government.
– The government announced Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs.
DISCOM
– Electricity distribution cos facing a serious crisis, therefore, the government announces Rs. 90,000 Crore Liquidity injection for DISCOMs.
Real Estate Sector
– 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.
– Government agencies to partially release bank guarantees, to the extent contracts are partially completed, to ease cash flow.
– Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March 2020 without individual applications
Taxation
– TDS, TCS rate for non-salaried payments for a period up to March 31, 2021 cut by 25 per cent.
– Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents.
– The due date for all income tax returns extended to November 30.
