20 lakh cr Relief package announcements by Finance Minister
Hemlata Khandenwal / 2020-05-14 11:13:39
What announcements made by FM minister Nirmala Sitharaman?
The Finance Minister Nirmala Sitharaman made several important announcements to create a roadmap for self-reliant India and open a relief package of Rs 20 lakh cr.
- 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 (24% of salary) for less than 15000 salaries.
For whom the announcement is beneficial?
This announcement of the government will only benefit companies that 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 having PF registration. This step of the government will benefit 72 lakh employees.
How much investment made in EPF?
The Finance Minister said that there will be an investment of Rs 2500 crore in EPF.
What steps have been taken by the government for employees and employers?
- The government has taken a big step to increase the take-home salary of employees in this relief of Rs. 20 lakh crores is opened by Finance minister on Wednesday, In the case of employees whose EPF contribution is not paying 24% i.e. the salary is more than Rs. 15,000.
- The percentage of contribution in PF for both employers and employees has been reduced from 12 to 10 percent. This will provide additional cash of Rs 6,750 crore to employers.
Important: In the case of central employees and public undertakings (PSUs), this provision will not apply to them. 24% will go to their PF account as before, 12% employer, and 12% of the employee.
What are the other announcements made by FM Minister?
Other important announcements
About rate of TDS
The finance minister said that the rate of Tax Deduction at Source (TDS) or Tax Collection at Source is reduced by 25 percent. This will apply to commission, brokerage or all other payments.
The reduction in TDS &TCS rates has come into force from May 13, 2020 and will remain till 31, March 2021. This will release about 50 thousand crore rupees to taxpayers.
For MSMEs
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.
A one-year deferment will be given to MSMEs to repay the loan, the stressed MSME will be given a loan of Rs 20,000 crore (without guarantee), benefitting 2 lakh MSMEs.
Micro Small and Medium Enterprises (MSMEs) without guarantee, automatic loan of Rs. 3 lakh crore, benefits to 45 lakh MSME units.
For PF employees and employers
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.
Other companies
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.
For Income tax return Filing
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.
The period of all income tax returns to be filled up to 31 July 2020 and 31 October 2020 has been extended till 30 November 2020. Along with this, the period of the audit report has also been extended to 31 October by filling up till 30 September.
For taxpayers
Rs 18,000 crore refunded to taxpayers, benefits to 14 lakh taxpayers.
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