Now from August 1, EPF will be cut by 12 percent. The exemption limit under the Self-Reliant India Package is ending today. The Modi government had reduced the monthly contribution to EPF from 24 per cent to 20 per cent under this package. Announcing this in May, Finance Minister Nirmala Sitharaman had said that as the business is closed in the lockdown, the contribution of both the company and the employee has been reduced from 24 to 20 per cent for May, June and July 2020.
However, it was up to the employee to opt for a 20 percent contraction or 24 percent. That is, now from August 1, the contribution of EPF will be 24 percent as before. In this, 12 percent company and 12 percent employees will be given. Explain that out of this 24 percent, 12 percent of the employee and 3.67 percent of the company’s 12 percent goes to the EPF account. The remaining 8.33 percent goes to the pension scheme.
In view of the Corona crisis, the Department of Posts had abolished the penalty for not putting minimum amount within the stipulated period in small savings schemes including PPF. In schemes like Public Provident Fund, Recurring Deposit, minimum amount can be added till 31 July without penalty. Earlier this date was till 30 June. After this, a penalty will have to be paid on the deposit.
Other major changes from August 1
1. Fees on minimum balance in the account
In many banks, the rules regarding minimum balance limit are going to change from August 1. According to the information, this change is going to happen in the banking rules of Bank of Maharashtra, Axis Bank and Kotak Mahindra Bank. At the same time, some banks are also preparing to charge a fee on cash withdrawal.
2. PM farmer money will come
The government is going to send the sixth installment of Rs 2000 to the bank account of the farmers from August 1 under the PM Kisan Yojana. The government has provided cash benefits to 9.85 crore farmers of the country since the inception of the scheme. Under this scheme, 6000 rupees are deposited in the account of farmers under this scheme.
3. Relief in buying car-bike insurance
The rules related to car and bike insurance are going to change from August 1. According to IRDA’s instructions, from August 1, when purchasing a car, it will not be necessary to take a third year cover for the car and three years for the bike. After this relief, new car buyers will get relief. They will be able to buy the car by paying the price.
4. New rules for e-commerce companies
From August 1, it will be necessary to tell e-commerce companies where the product they are selling is made. This has been strictly done by bringing e-commerce companies to the new consumer Kannu. This will help in promoting indigenous product.