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May 14, 2020 04:02 PM IST | Source: Moneycontrol.com
Nirmala Sitharaman Press Conference LIVE | Finance Minister expected shortly, will outline second tranche of fiscal stimulus
This is the second day of the FM outlining a tranche of the contours of India’s massive Rs 20 lakh crore fiscal stimulus
Finance Minister Nirmala Sitharaman will address the media at 4 pm on May 14. This is the second day of the FM outlining a tranche of the contours of India’s massive Rs 20 lakh crore fiscal stimulus announced by Prime Minister Narendra Modi.
FM Sitharaman said the announcements will be made in tranches. The announcements on May 13 included six measures for MSMEs, 2 for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.
The financial stimulus announced by PM Modi on May 12 is almost 10 percent of India’s gross domestic product (GDP) and comes as the country battles the economic effects of the coronavirus pandemic.
This Rs 20 lakh crore figure, however, includes the previous Rs 1.7 lakh crore stimulus package announced by Finance Minister Nirmala Sitharaman and steps taken by the Reserve Bank of India (RBI) since lockdown began on March 24 midnight. These earlier measures now together account to Rs 7.79 lakh crore of the complete package.Read More
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FM Sitharaman LIVE | Watch Press Conference by Finance Minister Nirmala Sitharaman here
FM Sitharaman LIVE | Tranche 1 - Sops for contractors
In a relief to contractors impacted by the COVID-19 pandemic, they will now receive up to six months extension for completion of obligations under highways, railways and other contracts. "The extension of up to six months without cost to contractor is to be provided by all central agencies like Railways, Ministry of Road Transport & Highways and Central Public Works Department," Sitharaman said.
She said this covers construction works and goods and services contracts besides obligations like completion of work, immediate milestones etc and extension of concession period in contracts on public private partnership.
To ease cash flows, government agencies will partially release bank guarantees, to the extent contracts are partially completed, she added.
FM Sitharaman LIVE | Tranche 1 - DISCOMS electrified
The government announced a Rs 90,000 crore liquidity infusion in electricity distribution companies to help them overcome the current financial stress.
FM Sitharaman LIVE | Tranche 1 - Twin EPF benefits
The minister extended by three months the government support to companies with less than 100 employees to meet retirement fund obligations. For all companies, the statutory obligation to pay 12 percent of basic salary as employer's share to employee provident fund (EPF) contribution has been reduced to 10 percent to boost their liquidity. Also read: FM’s stimulus: Lower EPF deduction to put more money in the hands of employees
FM Sitharaman LIVE | Tranche 1 - Deadline to file ITRs extended till November 30
In a relief to taxpayers, the government extended the deadline for filing of all income tax returns for FY20 till November 30.
The direct tax dispute resolution -- Vivad Se Vishwas scheme – too has been extended by six months till December 31.
Sitharaman said the Income Tax Department will fast-track processing of pending refunds to charitable trusts, limited liability partnerships (LLPs), non-corporate businesses, proprietorship firms, among others.
FM Sitharaman LIVE | Tranche 1 - 25% cut in TDS/TCS rate for non-salary payments
The government slashed the tax deducted at source (TDS) and tax collected at source (TCS) rates for non-salary payments to residents by 25 percent. However, Sitharaman clarified that the same “shall also apply to all payments for contracts, interest, rent, dividend, commission or brokerage.”
The reduction, she said, would put nearly Rs 50,000 crore into the hands of people who would have otherwise paid it as TDS.