Economic Package: What The FM Said & Key Points

Union Finance Minister Nirmala Sitharaman on Wednesday evening unveiled the first tranche of Rs 20 lakh crore economic package announced by the PM Narendra Modi on Tuesday night to tackle the impact of the COVID-19 pandemic and weeks of lockdown on the economy. The FM said the announcements will be made in tranches, aimed at all sections of the society, including the middle-class, MSMEs, labourers, farmers and the industry and themed around the 'Self-reliant India campaign'. 

Here are the top ten takeaways from the FM press briefing:

• EPF contribution for private employers cut by 2% from 12% to 10% for 3 months. This will increase take home pay and also liquid
• Govt will pay for EPF share of 12% till August which will benefit 72 lakh employees
• Collateral-free, automatic loans worth Rs 3 lakh core for MSMEs; expected to help 45 lakh businesses
• Definition of MSME changed to allow inclusion of more businesses into MSMEs
• Only Indian companies to be allowed in government tenders up to Rs 200 crore. This will make self-reliant India, will also then be able to serve 'Make in India'
• Rs 90,000 crore one-time liquidity lifeline for power distribution companies (DISCOM)
• Extension of up to 6 months for all central government contractors
• COVID-19 to be treated as "force majeure" for execution of real estate projects by freeing companies of liability
• TDS (Tax Deduction at Source) and TCS (Tax Collection at Source) rates reduced to 25% effective May 14, 2020 to March 31, 2021. This will increase liquidity by Rs 50,000 crore
• Deadline for Income Tax returns (ITR) extended from July 31 to November 30
• Period of making tax payments without additional amounts under "Vivaad se Vishwaas" scheme extended till December 31 for FY 2019-20