Facing money crunch? EPF withdrawal, PPF, Sukanya Yojana to EMI moratorium, 5 top steps that will help you fight crisis

Lockdown in India:  From EPF withdrawal, EMI moratorium to delay in insurance premium payments, there are various ways Narendra Modi government has allowed through which the public can still continue sourcing money.

ZeeBiz WebTeam | Apr 22, 2020, 02:17 PM IST

Lockdown in India: While the whole nation is united in the fight against Coronavirus, the government is also well aware of the crisis that may arise among citizens, especially monetary in nature due to the delay in salary payment or any other reasons. So, the government of India has taken various measures to help people fight money crunch during lockdown extension. From EPF withdrawal, EMI moratorium to delay in insurance premium payments, there are various ways government has allowed through which the public can still continue sourcing money to meet their financial requirements. On the basis of recent Government of India (GoI) announcements, we are listing out the following top 5 ways to fight financial crisis during money crunch in lockdown extension. Photo: PTI

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EPF withdrawal

EPF withdrawal

Having sense of the money crisis people might be facing even when the lockdown is lifted, the Narendra Modi Government has allowed 75 per cent of the EPF balance or three month salary, whichever is less, to be withdrawn from EPF accounts  by 30th June 2020. This EPF withdrawal facility is extended to those EPF account holders also whose EPF account is less than 5 year old. There will be no TDS or income tax deduction in case the EPF account is less than 5 year old. But, the EPF withdrawal request has to be submitted before 30th June 2020. Photo: Reuters

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Delay in insurance premium payment

Delay in insurance premium payment

The Government of India has extended the insurance premium payment deadline keeping the lockdown in mind. Most importantly, there will be no additional charges being levied on the insurance holder, in case, he or she decides to delay the insurance premium payment during the lockdown extension. So, one who is feeling the heat of money crunch, this insurance premium payment delay can be a good option to avail. Photo: Reuters

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PPF, Sukanya Yojana, more

PPF, Sukanya Yojana, more

Government has extended the deadline for financial year 2019-20 from 31st March to 30 June 2020 for PPF account holders, Sukanya Yojana and RD depositors for paying annual deposit. Now, they can submit the minimum annual deposit in such small saving schemes by the end of June. So, by delaying these minimum annual deposits in PPF, Sukanya Yojna, RD and other small saving schemes, one can create some money in this precarious condition. It also doesn't require any additional penalty or charges. So, there is no harm in availing of such GoI offer. Photo: PTI

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PM CARES FUND Donation

PM CARES FUND Donation

If you are going to file your ITR in the new deadline and you have donated money in PM CARES Fund to help the nation fight against the Chinese Coronavirus, the CBDT has good news for you. It has given an offer to income tax payers that any donation in PM CARES Fund from  1st April 2020 to 30 June 2020 will be free from the income tax outgo. apart from this income tax exemption, the donor will have the luxury to claim this tax exemption either in FY 2019-20 or in FY2020-21. So, a taxpayer can avail of this CBDT offer in any of the two financial years and save some money from the income tax outgo. Photo: PTI

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EMI Moratorium

EMI Moratorium

A three month EMI moratorium has been declared for those who are facing a funds crunch and cannot pay. However, this is a costly affair and involves some extra charges that the loan borrower will have to eventually pay. But, this can be a good offer to avail for those, whose salary has been delayed and their finances are not allowing them to pay EMI. In that case, it's better to avail EMI moratorium by paying the additional bank interest accruing during this three month moratorium. But, one should be using this option only when the above-mentioned four options have been exhausted. Photo: Reuters