New Delhi: Union Finance Minister Nirmala Sitharaman opened a bundle of economic relief package worth Rs 20 lakh crore on Wednesday. She made several important announcements to create a roadmap for self-reliant India. She said that the assistance given for the EPF is being extended for the next three months, which was earlier extended till March, April, May.
Finance Minister Nirmala Sitharaman said that in June, July and August, the government will submit EPF (ie 24% of salary) for less than 15000 salaries. This will benefit both the company and the employee. This step of the government will benefit 72 lakh employees. The Finance Minister said that there will be an investment of Rs 2500 crore in EPF.
8️⃣ To provide more take home salary for employees & give relief to employers in PF payment, statutory PF contribution for those not covered earlier is being reduced. Reduction is not for Central Govt . But govt. employees too will get this benefit. – FM #AtmaNirbharBharatAbhiyan pic.twitter.com/gcjZvtBEUdAdvertisement
— PIB in Maharashtra 🇮🇳 #MaskYourself 😷 (@PIBMumbai) May 13, 2020
The government has taken a big step to increase the take-home salary of employees. In the case of employees whose EPF contribution is not paying 24% i.e., the salary is more than 15 thousand, the percentage of contribution in PF for both employer and employee has been reduced from 12 to 10 percent. This will provide additional cash of Rs 6,750 crore to employers.
Keep in mind that this provision will not be in the case of Central Employees and Public Enterprises (PSUs). 24% will go to their PF account as before, 12% to the employer, and 12% to the employee.
Another important announcement in the economic package
The rate of TDS, TCS on other types of payment except salary was reduced by 25 percent by 31 March 2021, this will free the amount of Rs 50,000 crore for the units to spend.
– The MSME definition will be changed. The scope of the investment limit will be expanded, business-based criteria will be introduced.
– In small and medium scale units with growth potential, the share capital of Rs 50,000 crore will be infused into the MSMEs through the MSME Fund of Funds.
– One-year deferment will be given to MSMEs to repay the loan if given, pressurized MSME will be given a loan of Rs 20,000 crore (without guarantee), benefitting 2 lakh MSMEs.
– Employees Provident Fund (EPF) Government will give Rs 2,500 crore for the contribution of employees and employers, this incentive scheme was extended till August.
– The lending of Rs 30,000 crore for non-banking financial companies, housing finance companies, and MFIs (microfinance institutions).
– NBFCs will be provided cash of Rs 45,000 crore through a partial credit guarantee scheme.
– The serious crisis before power distribution companies, emergency cash of Rs 90,000 crore will be made available.
– The last date for filing income tax returns has been extended to 30 November. With this, the audit date has been extended to 31 October and the dispute has been extended till 31 December 2020.
– Rs 18,000 crore refunded to taxpayers, benefits to 14 lakh taxpayers.
– Micro Small and Medium Enterprises (MSMEs) without guarantee, automatic loan of Rs. 3 lakh crore, benefits to 45 lakh MSME units.
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