Here are key highlights from what she said:
1. Tax-related measures
- From tomorrow, till March 31, 2021, TDS and TCS rates reduced by 25%
- This will release Rs 50,000 cr in the hands of people
2. Dates extended for direct taxes
- Vivaad se Vishvas: Whole scheme extended till December 31, 2020
- Due date for all I-T returns for 2019-20 extended to Nov 30, 2020
- Date of asssessments getting barred as of March 31, 2021, are getting extended till September 30, 2021
- All pending refunds to charitable trusts, non-corporate businesses will be given immediately
- Date of assessments getting barred as on September 30, 2020, extended to December 31, 2020
3. Measures for Employees Provident Fund (EPF)
A liquidity relief is being given for all EPF establishments. Government support in the form of 12% employer and 12% employee contribution extended for another three months (June, July and August)
4. Measures for small businesses
Rs 3 trillion collateral-free automatic loans for Micro, Small and Medium Enterprises (MSME) in economic package.
Definition of MSMEs has been revised. Investment limit that defined an MSME revised upwards to Rs Rs 1 crore from Rs 25 lakh. A company can be MSME if the turnover is up to Rs 5 crore now
5 Measures for contractors
- All central govt agencies (railways, highways, PWD, etc) to give up to six-month extension to contractors
- Extensions to cover goods and construction contracts
- Concessional periods to also be extended by up to 6 months
- Govt agencies to partially release bank guarantees to the extent of the partially complete contracts
6. Measures for real estate
- The urban development ministry to issue advisory to states and UTs so that regulators consider the Covid-19 period an 'act of god'
- They will be able to extend all registered projects by up to 6 months
- Using the force majeure clause suo motu they can extend registrations and completion dates if these were falling after March 25, 2020
- Timelines under RERA to be extended
7. Measures for power discoms
- One-time emergency liquidity injection
- Rs 90,000 crore infusion in discoms by PFC and REC against their receivables
- State to issue guarantees
- Discoms to pay the gencos from the funds so generated
- All those receiving money should pass on the benefits to consumers
8. 'Self-reliant India'
- "The package is essentially to spur growth and help build a self-reliant India This whole initiative is called 'Atma-Nirbhar Bharat Abhiyan' (self-reliant India campaign),” says Finance Minister Sitharaman
- "The initiative rests on five important pillars: economy, infra, tech-driven system, demography and demand. In this mission, our focus will be on land, labour, liquidity and law."
- "The intention is to build brands: picking local brands and taking it global. The idea is not to become self-exclusionist but to contribute to the world."