Relief package

In a televised deal with Tuesday night time, India’s prime minister, Narendra Modi, introduced a financial relief bundle of greater than 20 lakh crores for a nation that, though comparatively profitable.
Mr. Modi was quick on particulars however mentioned the aid bundle, which quantities to around 10 % of India’s gross home product and was bigger than anticipated, would assist all courses, from farmers and migrant laborers to massive companies.
He emphasized that India could make much merchandise regionally, boasting that the nation went from manufacturing nearly no PPE kits or protecting masks earlier than the coronavirus pandemic to now making a whole bunch of 1000's every day.
Mr. Modi has been underneath intensifying strain to announce a rescue bundle. the worldwide turmoil from the pandemic has hit its financial system particularly laborious, leaving hundreds of thousands of poor folks unemployed. All throughout the nation, out-of-work laborers have been pouring from cities and returning to rural areas the place they hope to depend on relations to outlive.

Union Finance Minister Nirmala Sitharaman Wednesday introduced a slew of measures to assist companies, together with micro, small and medium enterprises (MSMEs), to get well from the financial impression of the coronavirus pandemic. This was part of the Rs 20 lakh crore stimulus bundle introduced by Prime Minister Narendra Modi a day earlier than to spur development and assist construct a self-reliant India. Read Nirmala Sitharaman speech highlights

In a bid to supply help to the struggling MSME sector, the federal government introduced collateral-free automated loans price Rs three lakh crore. It additionally modified the definition of MSMEs by revising upwards the funding restrict and bringing in further standards of a turnover dimension of the corporate. Further, it mentioned it might not permit international tenders for the presidency procurement of as much as Rs 200 crore.

For taxpayers, the federal government diminished the charges of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) by 25 percent, with impact from May 14, 2020, to March 21, 2021. It has prolonged the date for submitting earnings tax returns to November 30, 2020, and tax audit to October 31, 2020. The EPF contribution was additionally diminished for companies and employees for 3 months to 10 percent from 12 percent.