Industries seek relief from State and Central govt as financial burden rises amid COVID-19

Trade & industry associations and unions are expected to present the issues faced in terms of payment of wages to labourers and workers to the Central and State governments.

READ: Ministry Of Finance Brings In Ordinance; Regulatory And Compliance Relief Come Into Effect

Relief for industries

Certain reports suggest that the industry will be as asking for a subsidy of up to 75% for all wages for all workers, however, the government is expected to grant a subsidy only up to minimum wages. 

Other suggestions include the extension of employee provident fund contribution be extended to all establishments, freedom to reduce salary of those employees to applicable wages for the lockdown period or even be able to lay off certain number of workers.

Millions of daily wage laborers and industrial workers have been left unemployed across sectors because of the 21-day lockdown announced to stop the spread of coronavirus

READ: Finance Ministry Releases Rs 17,287 Cr To 14 States Under Disaster Management Relief Fund

In late March, the Finance Ministry announced that contractual workers will be paid during the lockdown period and that the employees will be marked as 'on duty'. The Ministry has also notified the Department of Personnel and Training regarding the maintenance of essential services in ministries and departments regarding the developments. A notification read,

"Due to these measures, there is a likelihood of a number of contractual, casual and outsourced staff such as housekeeping staff, etc being required to stay home which under normal circumstances would result in a deduction in their pay and wages," it said.

READ: Finance Ministry To Mark Contractual Workers As 'on Duty' During Lockdown; Will Pay Them

Last week, the Ministry of Finance brought in the 'Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020' to give effect to the relief measures pertaining to statutory and regulatory compliance announced on March 24. This provides for the extension of time limits under the Taxation and Benami Acts. For instance, the date of filing Income Tax returns, Aadhar-PAN linking and the 'Vivad se Vishwas' scheme has been extended until June 30, 2020. 

Moreover, the ordinance has amended the Income Tax Act to ensure that the same tax treatment is provided to PM CARES as available to the Prime Minister National Relief Fund. This implies that the donation made to PM CARES fund will be eligible for a 100% deduction under the Income Tax Act. Additionally, the limit on the deduction of 10% of gross income shall not be applicable for donation made to PM CARES fund.  

READ: Over 4.8 Lakh Daily Wagers Get Rs 1,000 Financial Assistance From UP Govt