Payroll and Compliance - The Monthly Chronicle

October 2017

The Government of India has already increased the gratuity tax-free limit to Rs. 20 lakh for all the public sector employees.

Recently, in September, government of India approved an amendment bill for gratuity. The new bill proposes an increases of the tax-free limit of gratuity to up to Rs. 20 lakh (from the current limit of Rs.10 lakh) for employees in the private sector.

These changes were proposed to bring parity between public and private sector employees.

Note: The proposed bill needs to be passed to make the said changes effective.

Revised Procedure for Transfer of Accounts under Provident Fund

With Digital India initiatives, the Employee Provident Fund Organisation (EPFO) is becoming a paperless organisation. All the old procedures will be considered as terminated, and new online procedures have been formulated for paperless and hassle-free work.

Some of the new processes formulated for transfer of accounts of a member on change of employment to facilitate subscribers have been listed below:

Case 1: In case the employee already has a UAN:

The current employer shall collect these details from the employee:

  1. UAN allotted to the member
  2. Aadhaar number of the member
  3. Name of the member
  4. Date of Birth of the member

The data thus submitted will be validated with the information available against the UAN, and in case of any discrepancy, the employer will verify/update the information provided.

Case 2: In case where UAN and Aadhaar are seeded and verified:

The employer needs to submit a declaration under Form-11 to the PF department providing new PF number details of the new employee. This will trigger an auto-transfer process which will transfer the accumulated value of PF against the employee’s previous PF ID to the new PF ID.

Note: Form No. 13 is not required to be submitted in such cases.

Note: On actual transfer of the account, communication would be sent to the member by SMS on his/her mobile number seeded against the UAN and by e-mail, if registered.

Case 3: In case the earlier UAN was not seeded with Aadhaar, or UAN was Aadhaar-seeded but not verified, or EPF transfer is to be done from or to an exempted establishment:

The member needs to apply for transfer in Form-13 as the existing procedure for physical transfer would be followed

Here is the official notification for your reference.

Introduction of Composite Declaration Form 11

The EPFO has embarked upon the next phase of e-governance reforms with a view to make its services available to its stakeholders. To move towards being a paperless organisation, EPFO has recently introduced a single-page Composite Claim Form (Aadhaar/Non-Aadhaar) and Composite Claim Form for death cases by replacing multiple forms for settlement of claims.

These new forms will also replace Form No. 13 in case of all auto-transfers wherein AADHAAR and UAN are seeded and linked together.

The following fields are newly introduced in the composite declaration Form 11.

  1. Declaration of previous employment particulars (separately for exempted and un-exempted establishments), along with previous establishment name and address, DOJ and NCP days for previous membership.
  2. Present employment details (DOJ in present establishment)

To read more about the changes and download new forms click here.

Discontinuance of Physical Form 9

In line with Digital India and setting up a paperless EPFO organisation, the EPFO department has discontinued physical submission of Form 9. From October 2017 onwards Form 9 can only be submitted through the online portal.

Form 9 is used to register a person under Provident Fund who is under EPFO purview for the first time.

To read more please refer the link.

Real time Monitoring System for Exempted Establishments

A few months ago, the EPFO had implemented online filing of returns by exempted establishments. In line with the introduction of the new software, a real-time monitoring of exempted establishments has also commenced. All the exempted establishments/employers are required to file the statutory online returns in time (on or before the 25th of the following month). It has been noticed that all PF-exempted establishments are still not filing the statutory online returns. Keeping this non-compliance in mind, the EPFO has directed all Regional PF Commissioners/Officers-in-charge of field offices to initiate action against such defaulting establishments, including cancellation of exemption as per the EPF & MP Act, 1952, EPF Scheme, 1952.

In this connection, the EPFO has introduced a system for online performance evaluation of exempted establishments on the basis of following parameters:

  1. Transfer of fund before due date
  2. Investment
  3. Remittance to the Trust
  4. Interest Declared
  5. Claim settlement
  6. Audit of accounts

To read the notification please refer the link.

National Apprenticeship Program

During the Budget 2017, Hon’ble Prime Minister’s has provided his vision of ‘Skilling India, To enable and promote his vision, the Ministry of Skill Development & Entrepreneurship (MSDE) and HRD – Department of Higher Education has made Industry friendly amendments to the Apprenticeship Act to expand the scope across manufacturing and services sectors. Government of India has also launched National Apprenticeship programme in July 2017. Under this campaign, all organisations (be it in Services or Manufacturing sector) must participate in the National Apprenticeship Program.

Note: As per apprentice Act, a company must engage apprentices in number at least 2.5% to 10% of total strength of establishment

Eligibility & Enrolment under the campaign: National Apprentice Act makes it mandatory for all the organisations employing more than 40 people failing which the organisation will be penalised. Also any organisations with more than 6 employees can voluntarily participate in the program. All organisations that fall under the scheme are requested to enrol apprentices by Registering on the Apprenticeship Portal – any one or both according to their requirements.

Under Apprenticeship Training Scheme - (Central Apprenticeship Council): There are 2 wings as below:

Ministry of Skill Development & Entrepreneurship Ministry of HRD, Dept. of Higher Education
  1. Trade Apprentices - Craftsman Training Scheme - ITI/ NCVT Certification
  2. Training Scheme - Apprentice Training Scheme - 8th Class +
  1. Graduate – 10+2+engeneering or 10+3 Diploma +Eng Degree
  2. Technician – 10 + Diploma in Engineering Technology or 10 +2 + Diploma
  3. Technician (Vocational) - 10+2 Vocational
Training period 6 month to 4 years Training period 1 year
  • Examination at the end of the training period
  • GOI pays 25% of the statutory stipend per month on quarterly basis – subject to a maximum of INR 1,500/-
  • In addition GOK provides INR 1,000/- per month
  • No examination is conducted at the end of the training
  • Govt. pays 50% of the statutory stipend paid per month

‘Certificate of Proficiency’ is awarded by the Regional Boards of Apprenticeship / Practical Training on the basis of the grade suggested by the employer

Students above 14 years are eligible , no upper age limit mentioned Need to register within 3 years of passing out from college

To register please click on the link

To register please click on link

Note: In case, company doesn’t comply with the above said requirement then there may be prosecution and penalties as imposed by government.
Compliance Calendar for the month of October, 2017
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th October 17 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15thOctober 17 Gujarat Gujarat PT regulations By Challan
20thOctober 17 Karnataka Karnataka PT regulations By Challan & Online
21st October 17 West Bengal West Bengal PT regulations By Challan
30thOctober 17 Assam & Orissa State-wise regulations By Challan
30th October 17 Maharashtra Maharashtra PT regulations Online
PF Central
15thOctober 17 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15thOctober 17 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th October 17 TDS Payment Income Tax Act, 1961 Online
31stOctober 17 TDS Return Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5thOctober 17 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
15thOctober 17  Punjab(LWF Act)  Punjab State Labour Welfare Offline
15thOctober 17 Chandigarh(LWF Act)  Chandigarh State Labour Welfare Offline
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Sources: Government Notifications, Circulars, Press releases.


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