Finance Minister Nirmala Sitharaman has given a big relief to the salaried employees in PF while giving information about the package of Rs 20 lakh crore announced by PM Modi. The government will continue to deposit the PF of companies with less than 100 employees and 90 percent of the employees getting salary up to Rs 15,000. Finance Minister Nirmala Sitharaman said that the government will also submit the PF of such employees in the months of June, July and August.
The government will pay 12 per cent of the workforce and 12 per cent of the companies. The Finance Minister said that this will benefit 72 lakh employees across the country. Till now this relief was only from March to May. Apart from this, the limit of PF for other companies has been reduced from 12 to 10% only.
The decision to reduce the PF of employees from 12% to 10% will continue for the next three months. Under this, the contribution of both employee and employer will be 10–10 per cent in PF. The Finance Minister said that on one hand employees will get a little more monthly salary, while the burden on companies will also be reduced. However, this decision will not be applicable to government companies and there will be 12% PF cut as before.
4.3 million employees will get relief due to reduced PF: The Finance Minister has also clarified here that this decision is only for those institutions whose PF government is not submitting. This decision will get 6.5 lakh companies and 4.3 million employees of the country. Not only this, in the next three months, this decision will bring an additional amount of Rs 6,750 crore in the hands of employees and employers. Due to this, liquidity in the market will also increase.
Big relief in income tax returns: It is noteworthy that the Finance Minister has now extended the last date for filing income tax returns till November 30 while giving relief to the salaried class. Apart from this, 25% reduction in TDS of non-salaried people is also given till March 31, 2021.