Singh bling Posted May 13, 2020 Posted May 13, 2020 Nirmala Sitharaman Press Conference LIVE Updates: TDS and TCS Rates Cut by 25%, Income Tax Return Deadline Extended to November 30, Says FM https://www.news18.com/news/india/nirmala-sitharaman-press-conference-live-updates-economic-package-coronavirus-lockdown-narendra-modi-atma-nirbhar-bharat-2617971.html Not much in first press conference . Only loans. As long as there is no demand why will any business will take loan.
Mariyam Posted May 13, 2020 Posted May 13, 2020 @Singh Sahab There are tax rate cuts. The idea is to have more liquidity in the market and leave people with some extra money. How else can you grow demand?
Singh bling Posted May 13, 2020 Author Posted May 13, 2020 7 minutes ago, Mariyam said: @Singh Sahab There are tax rate cuts. The idea is to have more liquidity in the market and leave people with some extra money. How else can you grow demand? If I am not wrong it's TDS cut which anyway you have to pay at the end of year. Anyway these are reforms which will kick after lockdown is over. What we are facing is immediate crissis of industry firing employees and people getting unemployed. Don't think msme will borrow more just to pay salary when we don't know when will this situation is over.
ravishingravi Posted May 13, 2020 Posted May 13, 2020 48 minutes ago, Singh bling said: Nirmala Sitharaman Press Conference LIVE Updates: TDS and TCS Rates Cut by 25%, Income Tax Return Deadline Extended to November 30, Says FM https://www.news18.com/news/india/nirmala-sitharaman-press-conference-live-updates-economic-package-coronavirus-lockdown-narendra-modi-atma-nirbhar-bharat-2617971.html Not much in first press conference . Only loans. As long as there is no demand why will any business will take loan. What news are you reading up ? Today was whole scale funding and exemptions for msme including expanding the definition of msme ?
diga Posted May 13, 2020 Posted May 13, 2020 Quote PF contribution reduced to 10% from 12% - This will add a little bit more to the pockets of both employer and employee. What happens to the CTC of an employee? Will it decrease or the take home for employee should increase? The cost to the company should remain constant right?
Singh bling Posted May 13, 2020 Author Posted May 13, 2020 30 minutes ago, ravishingravi said: What news are you reading up ? Today was whole scale funding and exemptions for msme including expanding the definition of msme ? MSME defination is good but that is economic reform and not related to Covid situation. What I understand is Government want msme's to borrow and pay salaries. Will it happen , I don't think so. So all this which today is announced will only work after restrictions are removed.
velu Posted May 13, 2020 Posted May 13, 2020 25 minutes ago, Singh bling said: MSME defination is good but that is economic reform and not related to Covid situation. What I understand is Government want msme's to borrow and pay salaries. Will it happen , I don't think so. So all this which today is announced will only work after restrictions are removed. no .. government want them to borrow money to kick start their business they also asked them to lend money to them without any collateral till October
ravishingravi Posted May 13, 2020 Posted May 13, 2020 For those allergic to reading. https://youtu.be/i6oNiE65PiI
Mariyam Posted May 13, 2020 Posted May 13, 2020 1 hour ago, diga said: What happens to the CTC of an employee? Will it decrease or the take home for employee should increase? The cost to the company should remain constant right? My understanding is that the CTC will reduce. But your take home will increase. For the 12% (of Basic, I think) that you had to contribute to the PF, your employer also had to contribute the same. That has been reduced to 10%. So in the short run both you and your employer save that money. More liquidity for both. Essentially, now you don't cost as much to the employer. Basically, in the long run, it even outs. From the corpus that you could avail years down the line, you have access to some of the funds now.
Singh bling Posted May 13, 2020 Author Posted May 13, 2020 41 minutes ago, velu said: no .. government want them to borrow money to kick start their business they also asked them to lend money to them without any collateral till October Businesses will only start once lockdown is relaxed and we have control of Covid situation. But as per AIIMS the infections will peak in June . If daily cases rises to 20-30k in June then no way majority of msme's will kickstart their businesses.
Mariyam Posted May 13, 2020 Posted May 13, 2020 (edited) 1 hour ago, Singh bling said: MSME defination is good but that is economic reform and not related to Covid situation. What I understand is Government want msme's to borrow and pay salaries. Will it happen , I don't think so. So all this which today is announced will only work after restrictions are removed. May very well happen. For most manufacturing MSMEs, the demand will return sooner or later. It was a question of survival till then. Fingers crossed. Lets see how this pans out. Edited May 13, 2020 by Mariyam
G_B_ Posted May 13, 2020 Posted May 13, 2020 The unemployment rate was already tappering. https://www.livemint.com/news/india/jobless-rate-drops-as-economic-activity-picks-up-in-parts-of-india-11589186082591.html the RBI's rate cuts did not have the desired impact. GoI stepped in... This is a question of survival and inducing a V shaped recovery.
G_B_ Posted May 13, 2020 Posted May 13, 2020 Suspect at the end of this the debt to gdp ratio will be 80%.
raki05 Posted May 13, 2020 Posted May 13, 2020 1 hour ago, Mariyam said: My understanding is that the CTC will reduce. But your take home will increase. For the 12% (of Basic, I think) that you had to contribute to the PF, your employer also had to contribute the same. That has been reduced to 10%. So in the short run both you and your employer save that money. More liquidity for both. Essentially, now you don't cost as much to the employer. Basically, in the long run, it even outs. From the corpus that you could avail years down the line, you have access to some of the funds now. It's jist for 3 months after that it will be again back to 12%
coffee_rules Posted May 13, 2020 Posted May 13, 2020 (edited) 3 hours ago, diga said: What happens to the CTC of an employee? Will it decrease or the take home for employee should increase? The cost to the company should remain constant right? There is no employee option for PF to raise or lower employee contribution to PF (unlike 401k). I know in India, you have PPF to save more. So, both employee and employer contribtion should go down by 2%, but in the long run, you might havelesser money in PF savings, but it will not impact, as you will have more take home now, which you spend and contribute to economy via GST, revenue etc. Edited May 13, 2020 by coffee_rules
diga Posted May 14, 2020 Posted May 14, 2020 9 hours ago, Mariyam said: My understanding is that the CTC will reduce. But your take home will increase. For the 12% (of Basic, I think) that you had to contribute to the PF, your employer also had to contribute the same. That has been reduced to 10%. So in the short run both you and your employer save that money. More liquidity for both. Essentially, now you don't cost as much to the employer. Basically, in the long run, it even outs. From the corpus that you could avail years down the line, you have access to some of the funds now. Thanks.. anyway its a temporary measure for only 3 months to increase spending. I also read that some employers can pass on the 2% saved from this to the employees Quote https://economictimes.indiatimes.com/wealth/invest/epf-contribution-of-private-sector-employers-employees-cut-to-10-for-3-months/articleshow/75717733.cms?from=mdr Where employer’s contribution forms part of agreed CTC with the employee, the balance employer’s contribution (2% of monthly pay) may be paid to employees which will further increase the monthly take-home salary in the hands of employees.
velu Posted May 14, 2020 Posted May 14, 2020 this is the right time to fix our labor laws .. modi/bjp got four more years and he can kill somebody and still nobody will blame him , but there is no signs of any labor reforms .. unless we fix this , make in india and self-reliance will be a pipe dream only .. 2 years back , we had a food counter in a mall , it was really a painful experience when comes to bureaucracy and hiring/firing
Clarke Posted May 14, 2020 Posted May 14, 2020 2 hours ago, velu said: this is the right time to fix our labor laws .. modi/bjp got four more years and he can kill somebody and still nobody will blame him , but there is no signs of any labor reforms .. unless we fix this , make in india and self-reliance will be a pipe dream only .. 2 years back , we had a food counter in a mall , it was really a painful experience when comes to bureaucracy and hiring/firing https://indianexpress.com/article/explained/what-labour-law-changes-mean-coronavirus-6403611/ Can't just brush aside safety related regulation
ravishingravi Posted May 14, 2020 Posted May 14, 2020 5 hours ago, velu said: this is the right time to fix our labor laws .. modi/bjp got four more years and he can kill somebody and still nobody will blame him , but there is no signs of any labor reforms .. unless we fix this , make in india and self-reliance will be a pipe dream only .. 2 years back , we had a food counter in a mall , it was really a painful experience when comes to bureaucracy and hiring/firing Its coming
motomaverick Posted May 14, 2020 Posted May 14, 2020 20 hours ago, Mariyam said: Basically, in the long run, it even outs. From the corpus that you could avail years down the line, you have access to some of the funds now. But that "some of the funds" is taxable income now. So I pay tax on something that was tax free till now, plus my Employer contributes lesser too on top of that. I don't get how this will benefit anyone.
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