Nirmala Sitharaman 1st announcement of 20*10e12

Nirmala Sitharaman 1st announcement of 20*10e12

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Deal Cadet
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Hi Dimers let us know who is getting what benefits from today’s session of 6 topics.

For me only two things

1. Epf contribution reduced to 10% from 12%.

2. EPF assistance extended for 3 months more.

I am working in MNC.

23 Comments  |  
13 Dimers
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Deal Cadet
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Bhai kuch nahi milega, be self dependent

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Deal Cadet
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For me lower TDS as I work as a professional in my company. Will get additional liquidity of 25% from TDS waiver

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Deal Cadet
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Employees Provident Fund Support for business and organised workers
The scheme introduced as part of PMGKP under which Government of India contributes 12% of salary each on behalf of both employer and employee to EPF will be extended by another 3 months for salary months of June, July and August 2020. Total benefits accrued is about Rs 2500 crores to 72.22 lakh employees.

Anyone here who got this benefit till now from any organisation?

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Deal Subedar
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rahulkothu wrote:

For me lower TDS as I work as a professional in my company. Will get additional liquidity of 25% from TDS waiver

Yes same for me lower tds.

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Analyst
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rockingneo wrote:

Employees Provident Fund Support for business and organised workers
The scheme introduced as part of PMGKP under which Government of India contributes 12% of salary each on behalf of both employer and employee to EPF will be extended by another 3 months for salary months of June, July and August 2020. Total benefits accrued is about Rs 2500 crores to 72.22 lakh employees.

Anyone here who got this benefit till now from any organisation?

Are you an employer or employee?

Missing
Deal Cadet
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GoogleCA wrote:

Are you an employer or employee?

A normal employee, want to dig further in this EPF t&c. smiley

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Analyst
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rockingneo wrote:

A normal employee, want to dig further in this EPF t&c. smiley

Max PF Employer Contribution – 12% upto 1800, Employee Contribution – 12% upto 1800. Employee contribution was anyways going to his PF account, now he will get that in hand that too only max 300 per person (if someone wants to talk about liquidity but is it really?). Means took money from your one pocket and kept in another pocket and told employee ko bola dekh tera kitna fayda ho gya! (See how much benefit you got). Now suppose Employer is paying 25L Salary & Wages per month then direct 2% i.e. 50K savings. End result businessman ko 50K savings aur employee ko lollipop.

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Deal Cadet
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GoogleCA wrote:

Max PF Employer Contribution – 12% upto 1800, Employee Contribution – 12% upto 1800. Employee contribution was anyways going to his PF account, now he will get that in hand that too only max 300 per person (if someone wants to talk about liquidity but is it really?). Means took money from your one pocket and kept in another pocket and told employee ko bola dekh tera kitna fayda ho gya! (See how much benefit you got). Now suppose Employer is paying 25L Salary & Wages per month then direct 2% i.e. 50K savings. End result businessman ko 50K savings aur employee ko lollipop.

I do understand these things resultant of reduced EPF contribution.

What is other EPF assistance program which was previously announced and now extended to 3 months more. How will employee/employer will benefit . @GoogleCA if you can explain.

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Analyst
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rockingneo wrote:

I do understand these things resultant of reduced EPF contribution.

What is other EPF assistance program which was previously announced and now extended to 3 months more. How will employee/employer will benefit . @GoogleCA if you can explain.

If some business has less than 100 employees and 90% of whom have salary & wages less than 15000/- then government will pay PF contribution.

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Deal Cadet
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GoogleCA wrote:

If some business has less than 100 employees and 90% of whom have salary & wages less than 15000/- then government will pay PF contribution.

💯 employees criteria can’t be neglected. smile

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Deal Newbie
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GoogleCA wrote:

Max PF Employer Contribution – 12% upto 1800, Employee Contribution – 12% upto 1800. Employee contribution was anyways going to his PF account, now he will get that in hand that too only max 300 per person (if someone wants to talk about liquidity but is it really?). Means took money from your one pocket and kept in another pocket and told employee ko bola dekh tera kitna fayda ho gya! (See how much benefit you got). Now suppose Employer is paying 25L Salary & Wages per month then direct 2% i.e. 50K savings. End result businessman ko 50K savings aur employee ko lollipop.

I understand from above is that for those employee whose gross salary below Rs 15000, govt will contribute/bear employee and employer pf portion max RS 1800.
Then what is RS 300 I couldn’t get, pls clarify.

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Analyst
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Mehtahitesh wrote:

I understand from above is that for those employee whose gross salary below Rs 15000, govt will contribute/bear employee and employer pf portion max RS 1800.
Then what is RS 300 I couldn’t get, pls clarify.

For others the rate is reduced from 12% to 10%. PF Salary Ceiling Limit is 15000 (even if your basic salary is above 15000, PF can be deducted only upto ceiling limit of 15000) so 2% of 15000 = 300

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Critic
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Reduction of EPF contribution from 12% to 10% both for employees and employers is a loss to the employees, not to the Govt. Also, the employer is under no obligation to pay this 2% saved to the employee, so the employer ends up getting the benefit at the cost of the employee. The Govt however ends up getting tax on this 2% which was earlier not taxable, either from the employee (if paid to him) or from the employer (if not paid). So govt will actually be getting income out of it.

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Critic
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Getting due Income Tax Refund of own money, Reduction in TDS (not total tax liability) and getting Previous Dues From Government is also considered Package.

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Deal Cadet
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panchabhut wrote:

Getting due Income Tax Refund of own money, Reduction in TDS (not total tax liability) and getting Previous Dues From Government is also considered Package.

All of your hard earned money coming back in search of you basically. Zero profit from this package.

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Critic
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Sorry say
Useless package from the government.

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Deal Cadet
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Its for not for people who are employee and getting salary via payroll. Its for contracts, any payments which attracts TDS

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Blogger
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panchabhut wrote:

Getting due Income Tax Refund of own money, Reduction in TDS (not total tax liability) and getting Previous Dues From Government is also considered Package.

That is how you create money without having money stuck_out_tongue

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Deal Lieutenant
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panchabhut wrote:

Getting due Income Tax Refund of own money, Reduction in TDS (not total tax liability) and getting Previous Dues From Government is also considered Package.

I will pay my credit card bill on the last day of the payment and thus give stimulus to the credit card company.

Please applaud my stimulus!

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