FM announces boost for MSMEs, extends IT returns deadline, cuts TDS and TCS rates by 25%

Sitharaman's press conference comes a day after PM Modi announced USD 265 billion fiscal stimulus to deal with COVID-19 situation in the country.
Finance minister Nirmala Sitharaman during a press meet in New Delhi. (Photo | Parveen, Negi, EPS)
Finance minister Nirmala Sitharaman during a press meet in New Delhi. (Photo | Parveen, Negi, EPS)

It is the Rs 20 lakh crore package and according to PM Narendra Modi will focus on "land, labour, liquidity and law". The PM has also emphasised that everyone including "small business, migrants, farmers" can expect succour.

As our report had noted Modi's 33-minute message had a few gold nuggets for businesses. First among them is the need to implement big-bang reforms. "We need reforms to bring rational tax system, simpler laws, better infrastructure, strong financial system and attract investment," he said.

With the headlines done, it is on to the Finance Minister to fill the blank page now, as her predecessor P Chidambaram put it.

Over to her:

IMA asks all members to provide water, energy bars to migrants walking home

In a communique to all state presidents and state secretaries, presidents and secretaries of the local branches and all national office bearers, IMA national president Ranjan Sharma drew their attention to the migrants travelling on foot to reach their destination. (READ FULL STORY HERE)

COVID-19 to impact study abroad plans of over 48 per cent Indian students: QS Report

The significantly lower return of investment in an already expensive international higher education domain coupled with further reduced chances of employability in the post-COVID-19 world have a key role to play in this shift, experts at QS have pointed out. (READ FULL STORY HERE)

Around 50 BSF officers quarantined after having get together at Headquarters in Delhi

The officers of the 52 Battalion and 32 Battalion located in Punjab have been quarantined for organizing a social gathering in their own officer's messes. (READ FULL STORY HERE)

COVID-19 free Goa registers seven fresh new positive cases

Rapid PCR test of seven persons has been found positive today. All 7 persons came to Goa from Mumbai, they all are asymptomatic. They have been put under quarantine. Their samples have been sent to Goa Medical College for confirmatory test: Goa CM Pramod Sawant.

41 new cases in Telangana

Public transport to resume in Haryana from Friday on 'experimental basis': Khattar

Even as the state looks to ease coronavirus restrictions to spur economic and other activities, Khattar made it clear that his government will not lower its guard and will not hesitate in imposing stricter curbs if things don't go as planned. (READ FULL STORY HERE)

Eight new positive cases in Bihar

Eight new COVID19 positive cases reported in Bihar, taking the total number of positive cases to 940: Bihar Health Department.

Special trains to have waiting lists from next week

Indian Railways special trains to be notified in future, will have waiting lists from May 22; Maximum waiting list limit- 1AC-20, Executive Class-20, 2AC-50, 3AC-100, AC Chair Car-100, Sleeper-200: Ministry of Railways.

Latest Rajasthan COVID-19 tally

ASSOCHAM on Finance Minister's latest economic package

New Delhi district magistrate's office sealed after 8 personnel test positive for COVID-19

  • he office of New Delhi district magistrate was sealed on Wednesday after eight civil defence volunteers working there tested positive for COVID-19, officials said.
  • All those who came in contact with the eight personnel will be tested for coronavirus, a senior official said, adding that contact tracing has also been undertaken to ascertain who came in their contact.
  • The eight personnel who tested positive were deployed at the district disaster management authority control room for COVID-19 inside the DM's office complex, officials said.
  • The office was sanitised and sealed after their test report came and all the senior officers, including the district magistrate and staff members, worked from home, officials said.
  • The eight personnel were involved in field work like distribution of masks and other relief works. They have been admitted at the YMCA care centre.
  • Lockdown blues: Odisha migrant worker ends life in Haryana, another tries to commit suicide in UP

    Unable to return home due to the nationwide lockdown due to coronavirus, a distressed migrant worker from Odisha's Kendrapara district has allegedly committed suicide in Haryana, an official said here on Wednesday. (READ FULL STORY HERE)

    IN PICS | Migrants wait to recieve travel tokens

    Bihar Deputy CM on Centre's economic package

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    Delhi Metro gears up for post-lockdown operations

    Vaniyambadi Municipal Commissioner shunted out after video of damaging veggies goes viral

    Vaniyambadi Municipal Engineer (ME) Cecil Thomas, who was holding additional charge of Municipal Commissioner, was shunted out on Wednesday following a controversy over damaging veggies and fruits of pavement shops in the business town. (READ FULL STORY HERE)

    Maharashtra continues to witness spike in COVID-19 cases

    1495 new COVID-19 cases and 54 deaths reported in Maharashtra today, taking total number of cases to 25,922 & deaths to 975. 5,547 patients have been recovered/discharged in the state so far. 15747 cases and 596 deaths have been reported in Mumbai: Maharashtra Health Department

    Latest coronavirus tally from Uttarakhand

    WATCH | 90% of road construction has started: Nitin Gadkari

    Important news on PM-CARES fund

    Six more BSF men test COVID-19 positve in Kolkata

    Six personnel of Border Security Force, who accompanied a central inter-ministerial team during its visit to West Bengal, had tested positive for COVID-19 in Kolkata. They have been discharged from hospital after recovering today: BSF Director General SS Deshwal.

    Latest coronavirus Haryana tally

    WATCH | Odisha migrant workers in Tamil Nadu pay 1,20,000 Rs to return back home

    Congress disappointed with FM's announcements on stimulus package

    There is nothing in, what FM said, for lakhs of poor, hungry migrant workers who have been walking to their homes. This is a cruel blow to those who toil every day. Except for modest MSME package, we are disappointed with announcements made by FM, says Congress leader P Chidambaram 

    Other measures

    Due date of all income-tax returns for FY 2019-20 will be extended

    Due date for Income Tax returns for the year 2019-2020 now being extended from 31st July and 31 Oct to 30 November 2020: FM Sitharaman

    Other measures

    Rs 50,000 crores liquidity through TDS/TCS rate reduction

    1) In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.

    2) Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.

    3) This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.

    4) This measure will release Liquidity of Rs. 50,000 crore.

    All pending refunds to charitable trusts, non-corporate business, LLPs and co-operatives will be processed immediately.

    Registration and completion of real estate projects extended

    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.

    Relief to Contractors

  • Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc)

  • Covers construction/ works and goods and services contracts

  • Covers obligations like completion of work, intermediate milestones etc. and extension of Concession period in PPP contracts

  • Government agencies to partially release bank guarantees, to the extent contracts are partially completed, to ease cash flows

  • Rs. 90,000 crore liquidity injection for DISCOMs

  • Revenues of Power Distribution Companies (DISCOMs) have plummeted. Unprecedented cash flow problem accentuated by demand reduction.

  • DISCOM payables to Power Generation and Transmission Companies is currently - Rs 94,000 crore

  • PFC/REC to infuse liquidity of Rs 90,000 crore to DISCOMs against receivables

  • Loans to be given against State guarantees for exclusive purpose of discharging liabilities of Discoms to Gencos.

  • Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries)

  • Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFC

  • Existing PCGS scheme to be extended to cover borrowings such as primary issuance of Bonds CPs (liability side of balance sheets) of such entities. First 20% of loss will be borne by the Guarantor i.e., Government of India.

  • AA paper and below including unrated paper eligible for investment (esp. relevant for many MFIs)

  • This scheme will result in liquidity of Rs 45,000 crores

  • Government of India and Central Public Sector Enterprises will honour every MSME receivable in the next 45 days: Finance Minister Nirmala Sitharaman

    Government to continue EPF support for both employers and employees

    Easing business

    Global tenders to be disallowed in government procurement upto Rs 200 crores

    Definition of MSMEs being changed

    Rs 50,000 crore equity infusion for MSMEs through Fund of Funds

    To provide stressed MSMEs with equity support, the government will facilitate provision of Rs. 20,000 crore as subordinate debt

    Today the tranche has over 15 different measures

  • Six of them for MSMEs

  • Two for Employee provident funds

  • Two for NBFCs

  • Two for MFIs

  • One to discoms

  • One to real estate

  • Three tax related one contractors

  • Collateral-free automatic loan for MSMEs

    'We have responsibility towards the poor'

    We shall not forget that we do have a responsibility towards the poor, needy, the migrants workers, divyang and the aged of the country: FM

    Here's the list of reforms by the Government so far: FM

    1. Direct Benefit Transfer given the Jan Dhan

    2. Aadhaar

    3. PM Awaaz

    4. Ujjwala

    5. Microfinance schemes

    6. Swachh Bharat

    7. Ayushman Bharat

    Food security, cash transfers part of package, says Sitharaman

    'For representational purpose. (Photo | Martin Louis)

    Measures taken by government are 'reform-driven'

    All the successful measures taken by this government over the two tenures have been reform-driven, says Sitharaman.

    Ease of doing business and compliance; global value chain integration is the cornerstone of 'atmanirbhar' vision, says FM

    Atmanirbhar (self-reliant) India does not mean India is to be an isolationist country: Sitharaman

    Finance Minister Nirmala Sitharaman. (Photo | ANI)

    These are the five pillars of Atmanirbhar Bharat: FM

    1. Economy

    2. Infrastructure

    3. Technology-driven systems

    4. Demography

    5. Demand

    Mission 'Atmanirbhar Bharat Abhiyan'

    The package is to build a self-reliant India and that is why the mission is called 'Atmanirbhar Bharat Abhiyan,' says Sitharaman.

    'PM laid out a comprehensive vision'

    The financial package announced by Prime Minister Narendra Modi essentially aims to spur growth and build a very self reliant India, says FM.

    Anand Mahindra, Mahindra Group chairman on PM's financial package

    Sensex soars 637 points ahead of Finance Minister's presser; Nifty ends near 9,400

    Unemployment rate surged to 27.11 per cent

    Finance Minister's presser comes at a time when the country's unemployment rate has surged to 27.11 per cent for the week ended May 3, up from the under 7 per cent level before the start of the pandemic in mid-March.

    P Chidambaram on Modi's financial package

    Senior Congress leader P Chidambaram on Wednesday mocked the prime minister's announcement of a Rs 20 lakh crore financial package as a "headline and blank page", and said he was looking forward to the finance minister filling the blank page. (READ MORE)

    Pointers from Union Heath Minister briefing on coronavirus

    The Rs 20 lakh crore stimulus package

    Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.Prime Minister Narendra Modi. (Photo | PIB)

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