In continuation with compliance relief announced by Indian Govt. on 24th March, 2020 for the business owners and tax professionals as Financial Year ending is approaching and relieved from compliance burden and fines could have been faced amid of this Corona Virus crises.
Finance Ministry has come up with relief package of Rs. 1,70,000/- crore for next three months and to cover almost 800 million people of this Country who are in Agriculture Sector, Daily Wage earners, Health Care workers, Women, Old and disabled people with the help of Direct Benefit Transfer(DBT) directly in the account of beneficiary,
Below are the announcements of the press conference held on 26th March, 2020 and announcements were made by Honorable Smt. Nirmala Sitharaman and Hounerable Sh. Anurag Thakur
Healthcare workers which include Doctors, Nurses, Supporting Staff, Technician etc. were addressed as front line worriers of the Country in the time of this chaos situation and also compared with god who were taking risk for their health and life. An insurance cover of INR 50 Lakh provided by the Govt. which will be covering approximately 20 lakh people working in healthcare sector in India.
Utilization of district mineral funds, state governments requested to utilize these funds for healthcare sector like for diagnosis and treatment of the patients.
Pradhan Mantri Garib Kalyan Yojna
- As per PMGK Anna Yojna right now poor families having ration card getting 5KG of rice or wheat per person per month for their family, govt. has additionally provided for next three months free of any cost 5 KG of rice or wheat per person of the family per month and 1 KG of pulse of their choice per family per month, so that poor does not remain without food and this will cover nearly 80 lakh ration card holder families
- Under PM kissan samman nidhi farmer get Rs. 2000 at the interval of every four month, same installment to be issued to the farmer in advance in the first week of the April, 2020, so that farmer does not get out of cash
- Daily wager earners under MGNREGA will now get daily wage of Rs. 202 instead of Rs. 182 and this increment is permanent and not for three months only.
- Additional Exgratia of Rs. 1000 in two installments provided for Old Age People, Widow and Disabled will be directly transferred to their accounts
- All the women jan dhan account holders will get an exgratia amount of Rs. 500 per month for the next three month, which going to benefit 20.50 crore women of the Country
- There are 63 lakh women self help groups (SHG) are operating across country, who impact livelihood of the 7 crore families are offered with additional line of credit by increasing their collateral free loan limit from Rs. 10 lakh to Rs. 20 Lakh.
- Govt. will be paying for next three months EPF contribution of both employers 12 percent and employees 12 percent i.e. 24 percent will go to EPFO account of employees of the establishment employing upto 100 employees and 90 percent or more employees earning salary upto Rs. 15,000/- per month.*
- Amendment will be made in EPFO regulation to allow non refundable amount advance of 75% of the balance available in EPFO account or 3 months salary whichever is lower, this is nothing but allowing withdrawal of employees their money in the situation of crises and this going to benefir 4.8 crore registered employees with EPFO
Under central government there is Building and Other Construction Workers (BOCW) Act, which is having welfare fund as well for the benefit of Building and Other Construction Workers and Rs. 31,000/- core is there which will be utilized for 3.5 crore registered workers to give them support in this crises situation.
Authors Opinion and Analysis
It seems like govt has freely opened their treasury for the last person and person at bottom of the pyramid for this situation of lock down and health, economic and medical crises which is very much appreciable step of the Current Government. However the contribution of the govt. towards EPFO with condition of 15,000/- wage earners will hardly help any business and industry as i don’s see coverage in this segment due to minimum wage act and 90% of the employees will be difficult to math the condition.
Further just like any daily wage earners there is Small Business community which called Micro and Small Enterprises (i am not covering even medium) are facing lots of hardship as their factory or office rent, interest on loan, salary of employees/workers and other fixed monthly expenses are on without any business or sales in hand. How they will manage to pay above said expenses cash flow, they are major contributor to the employment and economy of the country something must be decided by the govt. to compensate these kind of expenses so that motivation of these tax payers kept high.