20 lakh crore package new update

20 lakh Crore Package 

As we Know modi announced a 20 lakh crore package in which Nirmala sitharama  give speech everyday for some days to tell how 20 lakh crore package will used so let's see new update of 20 lakh crore package.

New update on EPF scheme

EPF stands for Employee Provident Fund

As we know in government jobs we can got pension after our Retirement but this facility is not included in Private jobs so to solve this problem Our government started one scheme in which an employee has to pay certain contribution ( in Rs) and equal contribution paid by the employer means by the owner of the company.

For example: One person got the salary of 10,000 so by this scheme he should pay 12% of 10,000 means 1200 to the Government and and in return he got 2400 in his retirement because 1200 paidby the owner of the company and this amount will collected in EPF Fund.

But this schme applied on that companies who have more than 20 workers , less than 100 workers and employee got less than Rs.15,000 so he should be must submit his 12% of his salary to the Government and it is optional for those who get more than 15,000 it depend on their wish. This scheme was launched under PMKGY scheme and this was provided earlier for salary months of March, April, and May 2020. This support will be extended by 3 months to salary months of June, July and August 2020, means at ago the owner of the company and workers should pay this 12% but now government paid this 12% from the side of owner and worker.

After reading this, most of the people thought so what will be the benefit of those who got more than 15,000 and whose companies are not eligible for this scheme so as we know the Term PF contribution in which employer pay 12% and same mount paid by company( but this was optional decided by employee either he want or not) but now government ordered PF contribution of both employer and employee will be reduced to 10% each existing 12% each for all establishments covered by EPFO for next 3 months, by this you can got more salary in this lockdown.

New update on TDS and TCS

TDS stands for Tax Deduction at Source,If you are working in a company and you got 1lakh per month at that time company deduct 10% of your salary means 10,000 and that amount paid by the company to the Government in form of tax and this whole process lie in TDS. Mostly people thought that they are not paying tax but their tax were already paid by their company and it made compulsory by government to the companies.

TCS stands for Tax Collection at Source, this is same as TDS but this applied on objects, if the person want to purchase his house and another one  want to sale his house in 10 lakh at that time you will not pay 10 lakh to owner of the house you will pay only 9 lakh to the owner and 1 lakh will deposited by you to the government in form of TCS.

The new update gave by the government in which the rates of TDS for non-salaried payments made to residents and rates of Tax Collection at source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. This reduction shall be applicable for remaining part of the FY 2020-21 from today to 31^st March, 2021.