Nirmala Sitharaman on measures taken for EPF, TDS rate for non-salaried, tax and real estate sectors

After announcing measures to MSMEs, Finance Minister Nirmala Sitharaman on Wednesday he turned his attention to EPFs, TDS and taxation-relationship issues.

The Finance Minister also sought to clarify the environment around the Prime Minister’s call for self-sufficiency, saying that does not mean that India will look only inward and become an “isolationist” country.

This is what he said about EPF, Taxes and real estate

– The government will pay Rs 2.5 billion rupees as an employee-employer contribution to EPF; scheme extended until August.

– The legal contribution of the PF by the employer was reduced to 10 pc from 12 pc before; to provide liquidity relief Rs 6,750 cr

– Liquidity relief is being granted for all establishments

– EPF support was extended for another three months.

– In order to provide more salary for employees and give relief to employers on PF payment, EPF contribution is reduced for companies and workers for 3 months,

– 72.22 lakh employees will benefit

– For state and central UPMs, it will continue to be 12 percent.

Government launches special liquidity scheme of Rs 30 billion for NBFC / HFC / MFI


– Under the scheme, the investment will be made in both primary and secondary market transactions in the NBFC / HFC / MFI investment grade debt paper.

– The securities will be fully guaranteed by the government.

– The government announced a liquidity infusion of Rs 45 billion through a 2.0 partial credit guarantee scheme for NBFC.

DISCOM


– Electricity distribution faces a serious crisis, therefore the government announces Rs. 90,000 Crore Liquidity injection for DISCOM.

Real estate Sector


– All central agencies must provide an extension of up to 6 months, at no cost to the contractor, to obligations such as the completion of works that cover construction contracts and goods and services.

– Government agencies to partially release bank guarantees, to the extent that contracts are partially completed, to facilitate cash flow.

– The Ministry of Housing and Urban Affairs will advise the States / UT and their Regulatory Authorities to extend the suo-moto registration and completion date by 6 months for all registered projects that expire from March 25, 2020 without individual applications.

Taxes


– TDS, the TCS rate for non-salaried payments for a period through March 31, 2021 was reduced by 25 percent.

– The government will infuse liquidity of Rs 50,000 crore by reducing the TDS rates, for specific non-salaried payments made to residents.

– The due date of all income tax returns was extended to November 30.