With just a day left for the much awaited announcement of the Interim Budget 2019, which as per the earlier call of Arun Jaitley is likely to be more than a mere vote on account due to the economic conditions the country is reeling under, may likely announce some of the measures in respect of small saving schemes such as NPS, sukanya samriddhi account, EPF etc. which qualify for deduction under Section 80C to the extent of investment of Rs. 1.5 lakh in a financial year.
And here is given the view held by the Union finance minister on these schemes in the earlier budget and the likely case that may be for this year.
On a more general basis, it is being viewed that in order to promote savings, govt. by far may enhance deduction limit under section 80C to RS. 2 lakh as it is already under pressure due to GST revenue shortfall.
For the Samriddhi Yojana, Finance minister in his previous budget for 2018 held the view that "Our commitment towards ''Beti Bachao Beti Padhao'' is unflinching. Sukanya Samriddhi Account Scheme launched in January 2015 has been a great success. Until November 2017 more than 1.26 crore accounts have been opened across the country in the name of girl-child securing an amount of Rs 19,183 crore."
And in the interim budget call, the rates can be maintained at 8.5% or increased further to promote masses to channelize savings for girl child.
EPF: In the Union Budget 2018, the government took aggressive measures to boost employment through measures, such as contributing 8.33% to EPF account for new employees for three consecutive years, which otherwise was to be done by the employer. And for other sectors that are human intensive, contribution of 12% to EPF for new employees for 3 years.
Fixed term employment being extended to workers from all the industries.
Deduction to the new employee to the extent of 30% of the wages.
Increase in the duration of paid maternity leave to 26 weeks from 12 weeks, along with provisions in relation to crèches.
Also to promote women participation in the formal job sector, he announced, "to make amendments in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to reduce women employees' contribution to 8% for first three years of their employment against existing rate of 12% or 10% with no change in employers' contribution."
In the interim budget 2019 too, the emphasis will be on the job creation and EPF scheme will be worked upon in such a way to provide more ready cash to employees.