Here are 6 relief measures to benefit in personal finance: Expert View

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There has been a downturn in the economy due to the lockdown from the last 3 months. The government has started to unlock in phases and along with the RBI have come up with several relief measures to protect the economy from the adverse impact of the COVID 19 crisis. The measures include a large number of steps taken that will directly or indirectly benefit the common people. 

Fiscal stimulus and several relief measures have been announced by the government and the RBI to protect the economy and individuals. The government and RBI are working for the nation, but the question arises that are you aware of those measures which could make things easier and help you overcome financial stress?

Here are those measures which can benefit your personal finance and how you can maximize the use of it.

1. Relaxation in income tax compliances

From April 1st, the financial year has started and taxpayers will be looking at the applicable compliances for the new financial year. Considering the present situation, the finance minister has extended the belated tax and revised tax return filing due date to 30th June 2020. However, if you are expecting a TDS refund, it would be wiser to file your ITR well before the extended deadline.

2. EMI moratorium extension

The extension of 3 months moratorium on repayment of term loans means that borrowers would not have to pay the loan EMI installments during the moratorium period. The extension will provide relaxation to many individuals, especially the self-employed, as they would have found it difficult to service their loans due to loss of income during the lockdown. RBI further cleared that such treatment will not lead to any changes in terms and conditions of the loan agreement. 

3. PMAY deadline extension

The last date for anyone wishing to avail the PMAY CLSS now stands at 31 March 2021. The finance minister has announced the extension for both the MIG-1 and MIG-2 categories. Those with income between Rs 6 lakh and Rs 12 lakh, fall under MIG-1 and gets an interest subsidy of 4 percent on a loan amount up to Rs 9 lakh. Similarly, an interest subsidy of 3 percent on a loan amount up to Rs 9 lakh for those whose income falls between Rs 12 lakh to Rs 18 lakh under MIG-2.

4. Reduction in repo rate by RBI

If your income channel did not get affected due to the current pandemic situation and you want to lessen your loan burden by making repayments, this would be the great opportunity as RBI’s decision to cut the repo rate on multiple occasions in the recent past has led to a record-low home loan interest rates. Your EMI has been already lowered if you are servicing a repo linked home loan. And you might witness the reduction in loan EMIs near future if you have MCLR based loan. 

However, a reduction in the repo rate would also lead to a fall in FD rates which might hurt your financial goals. 

5. RBI’s decision to cut the repo rate on multiple occasions in the recent past which has led to record-low home loan interest rates

For non-salaried taxpayers, the government has reduced the tax deducted at a source by 25%. The government has also announced to reduce the Employees’ Provident Fund contribution rate from 12% to 10% to allow greater liquidity to the employees and employers. However, taxpayers should keep mind that the reduction in EPF contribution will increase their take-home salary but that additional income will be taxed as per their applicable IT slab rate. 

6. Extension of PMVVY date

An extension in the investment period for PMVVY has announced till 31 March 2023. It is meant for senior citizens above the age of 60, who can get guaranteed pension payouts for 10 years where the maximum amount allowed for investment is Rs 15 lakh. 

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