Salaried person? Have PF account? Paying income tax? New announcements by Modi government

Union Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur on Wednesday addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi in his address to the nation on Tuesday night. Some of the big gainers from the press conference of Finance Minister Nirmala Sitharaman were – salaried individuals and income tax payers. Here are top announcements every salaried individual, income tax payers and provident fund account holders:-

– Due date for filing all income tax returns extended to November 30

– Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020

– Statutory PF contribution by employer reduced to 10 pc from 12 pc earlier; to provide Rs 6,750 cr liquidity relief

– Govt to pay Rs 2,500 crore as employee, employer contribution to EPF; scheme extended till August

 – In order to provide more take home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for Businesses and Workers for 3 months, amounting to a liquidity support of Rs 6750 crores

– To ease financial stress as businesses get back to work, Government decides to continue EPF Support for Business and Workers for 3 more months providing a liquidity relief of Rs 2,500 crore.

– EPF contribution reduced for Business & Workers for 3 months- Rs 6750 crores Liquidity Support

– It is necessary to provide more take home salary to employees and also to give relief to employers in payment of Provident Fund dues

– Therefore, statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months

-CPSEs and State PSUs will however continue to contribute 12% as employer contribution.

– This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.

– This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.

–  This will provide liquidity of Rs 6750 Crore to employers and employees over 3 months

– Rs. 2500 crore EPF Support for Business & Workers for 3 more months

– Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments

– This was provided earlier for salary months of March, April and May 2020

– This support will be extended by another 3 months to salary months of June, July and August 2020

– This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees.

Rs 20 lakh crore relief package: Modi’s announcement

Announcing a special economic package, Prime Minister Narendra Modi on Tuesday night said the recent decisions by the government, the decisions by the RBI combined with Tuesday’s financial package announcement come to about Rs 20 lakh crore – nearly 10 percent of India’s GDP. There is an unprecedented crisis but India will neither get tired nor give up the fight against coronavirus, Modi said, and asserted that we have to protect ourselves and move ahead as well.

Special economic package is for our labourers, farmers, honest taxpayers, MSMEs and cottage industry, the prime minister said in a televised address to the nation.

India is standing on five pillars –economy, infrastructure, governing systems, vibrant democracy and supply chain.

The mega Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.

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