The Finance Minister Nirmala Sitharaman on Wednesday made several announcements under Government’s economic package to fight the Coronavirus pandemic.
Further FM has announced relief measures for Mircro, Medium and Small Enterprises (msme) with a change in the definition of MSMEs. Investment can be up to Rs 1 crore and turnover can be upto Rs 5 crore, and the unit will still be Micro Enterprise. The key announcement includes Collateral-free automatic loans for business, MSMEs, Expanding the scope of term MSME, equity infusion in MSMEs.
The Finance Minister has also announced several taxation relief for 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 till 31st March, 2021.
The due date of all Income Tax Returns for Assessment Year 2020-21 will be extended to 30 November, 2020. Similarly, tax audit due date will be extended to 31 October, 2020.
Statutory PF contribution of both employer and employee reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. This will provide liquidity of about Rs. 2250 Crore per month.
Have a Look at Key Announcements by FM:
