Union Minister Nitin Gadkari, reacting to Finance Minister Nirmala Sitharaman’s announcements for small businesses hit by the coronavirus crisis and weeks of lockdown, said creating positivity in the circumstances was a challenge.
“We have to understand the art of living with corona. This is not a natural virus. It is an artificial virus and now many countries in the whole world – they are researching on it for a vaccine. The vaccine is not available, it is expected that vaccine will be available as soon as possible, then there will be no problem,” Nitin Gadkari said. “The second thing is detection methodology. We need some good methodology. Immediately, we can identify (the virus). This is unexpected because this a virus from laboratory, this is not a natural virus,” the union minister added. “Masks are mandatory. Maintain a distance of more than one metre. Use sanitiser every time you enter home and office. I expect beauty parlours, salons and malls to open soon, but we need to follow guidelines.” On the revision of the definition of Micro, Small and Medium Enterprises (MSMEs), the minister said: “It is very important. Now they will get all benefits. Earlier, there was a classification between manufacturing and service enterprises. Now there is no classification, both are one…” He underlined the need to develop khadi and village industry as it is giving maximum employment in backward areas. Gadkari added, “We have a turnover of Rs 88,000 crore of village industries. Now, we have to make it Rs five lakh crore within two years. This can be helpful for khadi industries. We will increase exports.” “We need to fight coronavirus but we are also fighting an economic war,” he said. “We are a poor country and can’t increase the lockdown from month to month.” The nationwide lockdown, imposed on March 25, has been extended thrice, with the latest extension beginning May 18.
Keeping in view PM Modi’s vision of a “self-reliant India”, FM Nirmala Sitharaman announced a slew of personal finance measures to boost demand in the country, which is ravaged by the pandemic. Here are the five announcements made by her:
1) Due date for all income tax returns has been extended to 30 November from 31 July.
2) TDS, TCS rate for non-salaried payments for period up to March 31, 2021 has been slashed by 25%, a move that will release ₹50,000 crore into the system, said Sitharaman.
3) To increase take-home salary for employees and to give relief to employers in payment of provident fund, Finance Minister Nirmala Sitharaman today said that for next three months EPF or employee provident fund contribution will be 10% each for employees and employers as compared to the statutory obligation of 12%. CPSEs and state PSUs will, however, continue to contribute 12% as employer contribution.
4) The finance minister today also announced an extension by another three months a scheme under which the government pays the EPF contribution of employees and employers. Under this scheme, the central government pays 24% of the monthly wages into EPF accounts below ₹15,000 per month, who are employed in establishments having up to one hundred employees, with 90% or more of such employees earning monthly wages less than ₹15,000. This scheme will be now available till August.
5) The EPF decision will provide relief to 6.5 lakh establishments covered under EPF and about 4.3 crore such employees, said Sitharaman, adding that it will provide liquidity of ₹6,750 crore to employees and and employers over next three months.
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