Finance Minister announced – Government will give EPF of less than 15 thousand salary, this step taken to increase take home salary
Union Finance Minister Nirmala Sitharaman opened the bundle of relief package worth Rs 20 lakh crore on Wednesday. He made several important announcements to create a roadmap for self-reliant India. He said that the assistance given for 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 salary. This announcement of the government will only benefit companies which have less than 100 employees and 90% of the employees’ salary is less than Rs 15,000. 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.
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%, ie, whose 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 sector undertakings (PSUs). 24% will go to their PF account as before, 12% to the employer and 12% to the employee.
On the economic package, Nirmala said – 3 lakh crore unsecured loan to MSMEs
Other important announcement
– 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 having 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 the MSMEs to repay the loan, the stressed MSME will be given a loan of 20,000 crore rupees (without guarantee), it will benefit 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.
– Lending of Rs 30,000 crore for non-banking financial companies, housing finance companies and MFIs (micro finance institutions).
– NBFCs will be provided cash of Rs 45,000 crore through partial credit guarantee scheme.
– 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.