The Monthly Chronicle for
Payroll and Compliances- Stay


Payroll and Compliance-March-2017

Benefit of Section 80CCG withdrawn from FY 2017-18

The Section 80CCG (Rajiv Gandhi Equity Savings Scheme) was introduced as a part of the Finance Act, 2012. Currently, under the Section 80CCG, deduction would be allowed for investment made by resident individual on listed equity shares or listed units of an equity oriented fund – subject to certain conditions for an amount equal to amount invested or Rs. 25, 000 (whichever is lower) for three consecutive assessment years.

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Payroll and Compliance-February-2017

Union Budget 2017 - Highlights

Union Budget 2017- Highlights. As most of you would’ve followed – The biggest event in India’s economic calendar just concluded and we wished to share some of its most prominent highlights with you.

The Hon’ble Finance Minister of India, Mr Arun Jaitley, presented the fourth budget of Prime Minister Narendra Modi’s term to the Parliament House on the 1st of February, 2017. During the session, he highlighted some of the most notable accomplishments of India in 2016.

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Payroll and Compliance-January-2017

Electronic Challan cum Return (ECR) gets a process-upgrade (Version 2)

The Employees’ Provident Fund Organization (EPFO) has moved towards the next phase in digitalization of processes. Earlier, the EPFO had released a new digitalized process for Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) and Universal Account Number (UAN) 2.0...


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Payroll and Compliance-December-2016

The next version of Universal Account Number (UAN 2.0)

The process of filing Electronic Challan cum Return (ECR) has been revised under the new version of UAN 2.0. Under this new version, the UAN would be allotted upfront and consequently, the ECR can only be filed for employees with UAN numbers...

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Payroll and Compliance-November 2016

The next version of Universal Account Number (UAN 2.0)

The Employees’ Provident Fund Organization (EPFO) is in the process of implementing the next version of UAN, whereby the Universal Account Number of an EPF member is to be obtained/linked with their present employer before filing the Electronic Challan cum Return (ECR). Currently, employers declare about new joiners, and obtain new UANs or link their existing UANs (based on whether they are first-time employed or have an existing EPF membership) to relevant PF accounts...

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Payroll and Compliance-October 2016

NSDL releases new e-TDS/TCS Return Preparation Utility (RPU) version 1.7 for quarterly TDS/TCS return filing

The National Securities Depository Limited (NSDL) has released a new version (1.7) of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) for filing quarterly TDS and TCS returns. The new version has been applicable from September 2016 onwards for any subsequent TDS/ TCS filing...

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Payroll and Compliance-September 2016

Maternity Benefit (Amendment) Bill, 2016 passed by Rajya Sabha

The Maternity Benefit (Amendment) Bill, 2016 was passed by Rajya Sabha on 11th August 2016 and is pending for the approval of Lok Sabha, after which it would require the President’s assent to be notified as an Act...

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Payroll and Compliance-August 2016

Due date for filing individual income-tax returns extended

The last date for filing income-tax returns has been extended to 5thAugust. Tax returns for 2015-16 (assessment year 2016-17) were originally to be filed by 31st July. But in view of the day-long strike at public sector banks, the deadline has been extended to 5th August...

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Payroll and Compliance-July 2016

A new due date and a new format for filing TDS returns

With effect from 1st June 2016, the Central Board of Direct Taxes (CBDT) has revised the due date for filing TDS returns as they endeavor to bring uniformity with regards to tax filings for both, government and non-government deductors. The revised due dates are as follows...

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Payroll and Compliance-June 2016

Service Tax increases from 14.5% to 15%

Consequent to the proposal made in Feb, 2016; effective June 1, 2016; a ‘Krishi Kalyan Cess’ of 0.5% will be levied on all taxable services. Hence, the effective rate of service tax stands revised to 15% and...

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Payroll and Compliance-may 2016

New e-TDS/TCS File Validation Utility (FVU) version 2.146 and 5.0 released

Incorporation of TAN and TAN name in the Challan Status Inquiry (i.e. CSI) file and verification with the TDS/TCS statement during the time of validation. In the instance where the TAN and TAN name of the Deductor/Collector, as per CSI file, does not match with the TAN as per the TDS/TCS statement, FVU will accordingly reject the TDS/TCS file or display a pop-up message.

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Payroll and Compliance-april 2016

New condition of PF withdrawal scheme effective from 1st May 2016

The EPFO department amended the EPF scheme to tighten various norms for the withdrawal of PF on 10th February, 2016. This includes the restriction of full withdrawal of PF on being unemployed for 60 days, increase in the age limit for retirement, etc.

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Payroll and Compliance-March 2016

Proposal to tax EPF rolled back

While rolling out the Union Budget 2016, Hon'ble Finance Minister had proposed to impose Tax for 60% of total amount withdrawn from the accumulated EPF balance at the time of retirement. After reviewing the impact of the proposal on salaried tax payers, the government has decided to roll back the budget proposal.

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Payroll and Compliance-February 2016

Provident Fund interest rate likely to increase to 8.95%

The Employees Provident Fund Organization (EPFO) is considering a proposal to increase the interest rate from 8.75% to 8.95% for the fiscal year 2015-16. The proposal has to be approved by the central board of trustees before it is sent to the Finance Minister for confirmation. Increased PF interest rates would encourage investors to make additional contributions to PF deposits.

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Payroll and Compliance-January 2016

Provident Fund Department removes the grace period for remittance

The process involved in PF calculation and remittance have gone online since last year. In light of this development, the Provident Fund department has removed the 5-days grace period allowed for remittance of the PF dues. From 1st February, 2016, all employers must make PF payment within 15th days from the close of every month.

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Revised minimum wage rates in Haryana

The Haryana government announced an increase in the monthly wages for skilled and unskilled labour.To avoid nonpayment of pension, the government has also decided to pay off the social-security pensions through banks and post offices and in some cases through the Business Correspondents of banks.

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EPFO plans to launch online PF-withdrawal facility by March 2016

All the paperwork required to withdraw your PF may soon be history! Currently one’s PF can only be withdrawn manually by submitting a signed application to the respective employer. This is a long, time-consuming, and tiresome process. Now the retirement-fund body, EPFO, is planning to launch an online PF-withdrawal facility by the end of March 2016.

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Payroll and Compliance-September-2015

No revenue stamp for PF claims

The Ministry of Labor and Employment has made the claim process hassle-free for EPFO subscribers. On Independence Day this year, it was announced that EPFO subscribers will no longer have to paste a Re. 1 revenue stamp on various claim forms.

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Payroll and Compliance-October-2015

EPFO proposes an increase in the insurance cover of subscribers under the EDLI scheme to ₹ 6 lakh

Employees Deposit Linked Insurance (EDLI) is paid to the family of an EPF subscriber in case of the subscriber’s death. The Employees Provident Fund Organisation (EPFO) has proposed an increase in the life insurance cover of its subscribers from ₹ 3.6 lakhs to ₹ 6 lakhs.

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Payroll and Compliance-August-2015

Centre to fix 75% cap to tighten premature Employees’ Provident Fund withdrawals

To protect the retirement savings of workers, the government has finalized a proposal to cap premature withdrawals from the Employees’ Provident Fund at 75% of the total accumulation in case of loss of employment. 


Payroll and Compliance-July-2015

New and much simpler income tax return (ITR) format has been released

New three page Income Tax return format ITR-2A has been released for the filing Income Tax Returns which is due on 31st August 2015. This new format can be used to file returns by an Individual or HUF who does not have capital gains, Income from business/profession or foreign asset/foreign income.



Termination of an employee without proper enquiry is illegal.

Termination of an employee without proper enquiry for his long unauthorized absence or misconduct is illegal. The employee in such situations will have to be re-instated with back wages.Termination of an employee without proper enquiry for his long unauthorized absence or misconduct is illegal. The employee in such situations will have to be re-instated with back wages.



Why UAN is better than PF accounts?

For starters, Universal Account Number (UAN) simplifies the entire process of transferring PF amount from one account to another while a person changes job. UAN also avoids subscribers having multiple accounts. Having multiple accounts has its own problems. First all it leads to confusion, second any PF account without any contribution for three years earns no interest.


Newsletter Strictly Statutes Mar - 2015

For Coverage of an Establishment under provident fund act, the regular, temporary, casual, and contract employees are accounted

For coverage of an establishment under Employees' Provident Fund and Miscellaneous Act, 1952, every employee who is either regular, temporary,casual, or engaged through contractor(s) is applicable


Newsletter Strictly Statutes Feb - 2015

Shortfall in notice pay to a terminated employee, guilty of delinquency justifies re-instatement of the employee with back-wages

If a company terminates a delinquent employee after conducting a fair enquiry and fails to pay an amount equivalent to one month notice pay then the termination would be disapproved under section 33(2)b of the industrial dispute act, 1947 and the company is liable for re-instatement of the employee with back-wages