Finance Minister Nirmala Sitharaman made a big announcement on TDC and TCS on Wednesday. she said that it has been decided to cut the TDS / TCS rate by 25 percent on all types of payments except non-salaried payments by 31 March 2021. This move of the government will save more money to spend in the hands of the people. The Finance Minister also announced to extend the deadline for filing income tax returns with it. Before this, she said that the government will give a loan of three lakh crore rupees to micro, small and medium industries (MSME) sector without any guarantee. He said that this is a collateral-free loan guarantee scheme. 6 steps have been announced for MSMEs. Apart from this, earlier relief given to some companies regarding EPF has been announced to continue for the next three more months. Apart from this, private companies have been allowed to contribute 10 percent instead of 12 percent in the PF fund for the next three months.
Know What the Finance Minister Said About Atmanirbhar Package:
- Unsecured loan of Rs 3 lakh crore for MSME sector
- 45 million MSMEs to get benefit from collateral free loan
- Loans to be given to MSME for 4 years
- Loans up to 25 crores will benefit 100 crore turnover
- Principal will not require to pay in the first 12 months
- 20 crores out of 3 lakh crores for NBFC
- 50000 crores fund of funds to be created for MSMEs
- Definition of MSMEs will change
- MSME to be linked to e-market
- 90 thousand crores cash will be put in Discom
- 10 crores to 50 crore company will be small
- Those below 200 crores will not have global tender. MSMEs will be given benefits.
- There will be an investment of 2500 crores in EPF.
- Earlier relief for EPF will be given by the government in June, July, and August so.
- 72 lakh employees benefit from government support in EPF
- The contribution of private companies in EPF was reduced from 12 percent to 10 percent.
- Employers benefit 6800 crores from EPF cut: Finance Minister
- Cash facility of Rs 30,000 for NBFCs, housing finance companies, and MFIs
- Discom faces a huge cash flow problem: Finance Minister
- Emphasis will be laid on e-market linkage for MSMEs
- Government will do the rest of the payments of MSMEs within 45 days
- 25% reduction in TDS rate
- Will apply to all types of payments
- Will be applicable from tomorrow till 31 March
- The due date of income tax returns for the year 2019-2020 has now been extended from 31 July and 31 October to 30 November 2020.
- Announcing great relief for the contractors, the Finance Minister said that all the central agencies would give the contractors an additional six months to complete the work at no charge.
- In a major relief to real estate developers, the government has extended the deadline for completion of the project by six months.
Earlier, she said that 5-5 kg of rice/grain was distributed to 80 crores poor. 8 crore Ujjwala scheme beneficiaries are being given three months free cylinder. The announcements made under the Garib Kalyan Yojana are being met.
Regarding the economic package of Rs 20 lakh crore, the Finance Minister said that this package has been prepared after talks with all the parties. Sitharaman said that the industry was taken care of in the package. She said that this atmanirbhar package was necessary to accelerate growth.
She started her press conference with a self-sufficient India campaign. She said that PM Modi presented the vision of self-reliant India in front of the country. The Finance Minister expressed confidence that this package will make India self-reliant. The Finance Minister said that making the local brand global is part of the self-reliant India Mission.
Finance Minister Nirmala Sitharaman said that there are five pillars of self-reliant India – economy, infrastructure, systems, demography, and demand.
The Atmanirbhar package was announced by Prime Minister Narendra Modi on Tuesday during his address to the nation. Prime Minister Modi said that this package is being brought with a resolve to make the country self-sufficient in this period of the Corona crisis. She said that these packages are for the country’s workers, farmers, middle class, cottage industries, and MSME sector.
