Highlights of “Aatma Nirbhar Economic Package

Various measures have been taken to make “Aatma Nirbhar Bharat”. Let’s have a look on all measures :

(1.) MSME

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(2.) EPF

(3.) NBFCs :

(4.) DISCOMs :

(5.) CONTRACTORS :

(6.) DIRECT TAX :

Big Relaxation to Life Insurance Policy Holders in the wake of COVID-19

Key highlights :

> IRDAI extended grace period up to 31st May, 2020 for all policies where premium was due in the month of March, 2020.

Overview :

> The Insurance Regulatory and Development Authority of India (IRDAI) vide Circular Ref: IRDAI/Life/Grace Period dated 09.05.2020 has allowed ADDITIONAL GRACE PERIOD FOR LIFE INSURANCE POLICIES in the wake of Covid-19 pandemic.

Key Points :

> First, IRDAI had announced on 23rd March, 2020 and 4th April 2020, additional Grace Period of 30 days for the policies where premium fell due in the months of March, 2020 and April, 2020.

> Now lockdown has been further extended up to 17th May 2020, the Authority has now allowed extended grace period up to 31st May 2020 for all policies where premium was due in the month of March, 2020.

> Kindly note that : Objective of Grace Period allowed is to pay all the premiums due within that period so as to keep the policy coverage in force.

> Life insurance companies are equipped to provide facility to pay premiums online.

> The policyholders are encouraged to make use of this provision so as to minimize their personal visit to the offices of the insurers.

 

Revised Rates of TDS and TCS : As Per “Aatma Nirbhar Economic Package” :-

In order to provide more funds at the disposal of the taxpayers for dealing
with the economic situation arising out of COVID-19 pandemic, the rates of TDS for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021 :

2. Further, the rate of TCS) for the following specified receipts has also been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021 :

3. Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above.

4. It is further stated that there shall be no reduction in rates of TDS or TCS,
where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.

5. Legislative amendments in this regard shall be proposed in due course.

 

 

Highlights of “Aatma Nirbhar Economic Package” : Part-3

KEY HIGHLIGHTS :

11 booster shots for India’s farmer :

> 8 relating to strengthening infrastructure, capacity, logistics.

> 3 relate to governance and administrative reforms.

(2.) Government Initiatives During Lock down Period to support Farmers :

> Minimum Support Price purchases worth 74,300 crores has taken place during lockdown

> Rs 18,700 transferred to farmers under PM KISAN

> Rs 6,400 crores released under PM Fasal Bima Yojana

> New scheme for interest subvention of 2% per annum for dairy cooperatives

> Additional 2% interest subvention on prompt payment/ interest servicing

(3.) Rs 1 lakh crore Liquidity Support provided – Agri Infrastructure fund :

> For aggregators, FPOs, primary agriculture societies for strengthening farm gate infrastructure

> For cold chains and post harvest infrastructure

> Specially for private and startups

> ₹ 1 lakh crore fund being created for Farmer Producer Organizations, aggregators, primary agriculture cooperative societies for strengthening farm-gate infrastructure such as cold chains, post harvest management infrastructure.

(4.) Support to micro food enterprises :

> Fund of Rs 10,000 crores to be made

> Cluster-based approach to scheme depending on location

> 2 lakh enterprises will benefit

> For locally-made products to reach global markets

> Focus on women, SCs/STs and aspirational areas

(5.) Animal Husbandry Additional Steps :

Animal Husbandry Infrastructure Fund – Rs 15,000 crores fund to be established

> New scheme has been launched for interest subvention @ 2% per annum to dairy cooperatives for 2020-21 aimed at unlocking Rs 5000 crores additional liquidity, benefitting 2 crore farmers

> Milk was being thrown on streets, since consumers were unable to buy it during lockdown, during this time, 560 lakh litres/day was procured by cooperatives, extra 111 crore litres bought, farmers got paid ₹ 4,100 crore

(6.) Agriculture Additional Steps :

Funds transfer worth Rs 18,700 crores has been done under PM KISAN in past 2 months and PM Fasal Bima Yojana claims worth Rs 6,400 crores released in past 2 months

(7.) Fisheries Sector Support :

> To help Fisheries sector, operations of Marine Capture Fisheries and Aquaculture has been relaxed to cover Inland Fisheries

> Registration of 242 shrimp hatcheries and rearing hatcheries has been extended for 3 months, operation of marine capture fisheries and aquaculture has been relaxed to cover inland fisheries

> All COVID19 related deadline extensions relating to fisheries activities, many of them involving overseas contracts, have been honored. Very many measures which will help marine and coastal farmers have been undertaken as promised

(8.) 100% vaccination of all cattle (nearly 53 crore animals) to eradicate foot and mouth disease.

(9.) Support to Under Matsya Sampada Yojana :

> Rs 20,000 crore fund to be created to address critical gaps in fisheries value chain

> For integrated, sustainable, inclusive development of marine and inland fisheries

> Plug critical gaps in fisheries value chain;

> Provide employment to over 55 lakh persons

> Double exports to Rs 1 lakh crore

(10.) Support and Promotion of herbal cultivation :

> Rs 4,000 crore to be allocated

> Up to 10 lakh hectare to be brought under herbal cultivation

> To generate Rs 5,000 crore income for farmers

> 800 hectares along Ganga for growing herbal and medicinal plants

(11.) Support For bee-keeping :

> Rs 500 crores for bee keeping initiatives to benefit 2 lakh keepers

> Production of wax to be encouraged

(12.) National Animal Disease Control Programme has been launched with total outlay of Rs. 13,343 crores for 100% vaccination of cattle, buffalo, sheep, goat and pig population in India

(13.) Private entrepreneurs, startups who look to facilitate by procuring from farmers and seek to create value addition for the global market, but don’t have infrastructure, will benefit from the ₹ 1 lakh crore fund

(14.) Promotion of Herbal Cultivation – Rs. 4000 Crore :

> To promote Herbal Cultivation in India Government commits Rs 4000 crore;

> Move aims to cover 10 lakh hectare under herbal cultivation in 2 years; corridor of medicinal plants to come up across banks of river Ganga

(15.) Government will promote: Operation Green :

> Additional Rs 500 crores for supply chains disrupted by lockdown

> Includes all perishable items

> 50% subsidy on transport

> 50% subsidy on storage

> Pilot for 6 months

> Will be extended once pilot is cleared

(16.) Top to Total :

In a major announcement, Government extends Operation Greens from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables


MAJOR REFORMS RELATED TO ADMINISTRATIVE AND GOVERNANCE :

(1.) Essential Commodities Act (1955) amended :

> To tackle abundance of crops

> Cereals, edible oils, oil seeds, potato and onion to be deregulated

> No stock limit shall apply for storage

> To enable better price realization for farmers

> Agriculture food stuffs including cereals.

(2.) Fair price for farmers :

> Central law to provide farmers choice to sell at attractive prices

> Inter-state trade to be made barrier-free

> E-trade of produce should be facilitated

(3.) Standard mechanism for predictable pricing :

> Legal framework to help farmers to fix their own price

> Assured price return quantity for farmers prior to sowing

> To increase availability on farming technology and selling opportunities

Highlights of “Aatma Nirbhar Economic Package” : Part-4

KEY HIGHLIGHTS :

STRUCTURAL REFORMS ARE THE FOCUS OF THESE ANNOUNCEMENTS :

Which are new horizons of growth, unleashing new investment, boosting production and creating jobs.

(1.) Many sectors need policy simplification, to make it simpler for people to understand what sector can give, participate in activities & bring transparency. Once we decongest sectors, we can boost the sector, for growth and jobs.

(2.) Public sector bank reforms infused equity and also ensured that they are professionally managed, also giving them independence. No cronyism has been developed through banks.

(3.) Direct taxation reforms were taken, daring power sector reforms, coal sector, irrigation – PM Mr. Modi, has been consistent in taking up reforms.


(4.) Steps to be taken for Investment reboot :

> Fast tracking investment clearances

> Special cell for seamless approvals

> Upgrade of industrial infra

> Providing land solutions

(5.) All industrial parks to be ranked.

(6.) PM has very strong record in taking up deep systemic reforms :

> Direct Benefit Transfer enabled giving money directly to people

> GST brought in One Nation One Market

> IBC resolved insolvency issues, #Ease of Doing Business steps taken

(7.) Eight Sectors In Focus :

> Coal

> Minerals

> Defense Production

> Airspace management,

> Airports

> Power distribution companies in Union Territories

> Space

> Atomic Energy

(8.) Rs 50,000 crore allotted for creating evacuation infrastructure for coal.

(9.) Boosting Mineral Sector :

> Seamless mining, exploration regime

> 500 mining blocks to be offered

> Joint auction of bauxite and coal blocks

> Distinction between captive, non-captive mines removed

> A mineral index to be made

> Stamp duty to be rationalised

(10.) Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme with a Total outlay of Rs 8100 crores.

(11.) Boosting private participation in Space activities: Govt. to provide predictable policy and regulatory environment to private players.

(12.) A Tariff Policy laying out the reforms in :

> Black small square Consumer Rights

> Black small square Promote Industry

> Black small square Sustainability of Sector

(13.) Make in India push for defense :

> Indigenistion of imported spares

> List of weapons/platforms to be notified for import ban

> Separate budget for procurement

> Improve autonomy, accountability in ordnance

> FDI limit raised from 49% to 74%

> Overhaul of testing systems

> We need to be self-reliant where we can be

(14.) Distinction between captive and non-captive mines to be removed:

> Will help transfer of mining leases and sell surplus unused minerals

> Ministry Of Mines is developing a Minerals Index

> Stamp duty for mining license being rationalized

(15.) New wings for Aviation :

> 6 more airports up for auction

> Pvt players get investment room expected money: Rs 13,000 crores

> 6 more airports to be identified

> Rationalizing air space to reduce flying time, save fuel

> Air space curbs to be removed

> Green efforts to be boosted

(16.) Tariff policy reform for power :

> Discoms in Metros to be privatised

> You won’t have to suffer for discom inefficiencies

> Load shedding will face penal action

> Discom functions to be streamlined to improve accountability

(17.) Atomic energy reforms :

> Research reactor to be done in PPP mode (for medical isotopes)

> PPP mode facility for irradiation tech for food

> Startup ecosystem to be linked with nuclear sector

(18.) We are making sure that using technology, land parcels are mapped using GPS and are utilized properly. 3,376 Industrial parks over 5 lakh hectares have been mapped, so that potential investors can utilize them appropriately.

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