FM Nirmala Sitharaman Announcements on COVID-19 Economic Relief Package Live Updates: The government has announced measures to help businesses, including micro, small and medium enterprises (MSMEs), recover from the economic impact of the coronavirus (COVID-19) pandemic.
Union Finance Minister Nirmala Sitharaman Wednesday announced a slew of measures to help businesses, including micro, small and medium enterprises (MSMEs), recover from the economic impact of the coronavirus pandemic. This was a part of the Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi a day before to spur growth and help build a self-reliant India. Read Nirmala Sitharaman speech highlights
In a bid to provide support to the struggling MSME sector, the government announced collateral-free automatic loans worth Rs 3 lakh crore. It also changed the definition of MSMEs by revising upwards the investment limit and bringing in an additional criteria of turnover size of the company. Further, it said it would no longer allow global tenders for government procurement of up to Rs 200 crore.
For taxpayers, the government reduced the rates of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) by 25 per cent, with effect from May 14, 2020 to March 21, 2021. It has extended the date for filing income tax returns to November 30, 2020 and tax audit to October 31, 2020. The EPF contribution was also reduced for businesses and workers for three months to 10 per cent from 12 per cent. Follow Coronavirus India LIVE Updates
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