Payroll and Compliance - The Monthly Chronicle

August 2018




The income tax return filing date for individuals has been extended to 31st August 2018. (Earlier the due date was 31st July 2018)

Please find the official notification attached:

New Provident Fund Withdrawal Rule

Currently, the EPF Scheme 1952 allows withdrawal of accumulated provident fund after two months from the date of cessation of employment of the member. Also, the subscriber needs to contribute to his PF account consecutively for at least 10 years to become eligible for pension; if the account is closed prematurely, the subscriber may not remain eligible for pension.

The Provident Fund department has provided an added benefit for the withdrawal scheme. Now, the PF subscriber who has resigned from their job can withdraw up to 75% of his or her total accumulated provident fund value after one month from the date of cessation of service, to meet their monthly financial commitments. Members will continue to have the option of withdrawing the entire amount, if they want to close the account, after two months if the person is still unemployed.

Employee State Insurance Corporation (ESIC) Challan Deletion Process

A large number of challan deletion requests are coming through the employer for ESIC challans. The department has therefore come up with a set of instructions for the same:

  • Deletion request for already-paid challan will not be entertained.
  • Request for deletion must be sent to the Branch office or regional officer within three (3) days after generation of challan or the submission of contribution.
  • Request for deletion of challan must be from an authorised and registered email ID.
  • Hard copies of all requisite documents must be sent in proper format to the department in due course.
  • Challan deletion request can be sent only for previous month and not for the period before that.

After receiving the deletion request in the proper format and within the specified time, the department will start the cancellation process in the prescribed manner, after proper verification of all details and documents.

Further details are in the official notification:


Chief Commissioner of Income Tax S.P. Choudhury said a woman IT professional working in Hyderabad was the highest individual tax payer last year, with an annual salary of ₹30 crore.

Cricketer MS Dhoni becomes the highest income tax payer in Jharkhand in FY 2017-18, by paying ₹12.17 crore in income tax.

Ludhiana celebrated Income Tax Day on 23 July2018 by planting a vertical garden.

As per the Advance Rulings (AAR), the salary income of a non-resident individual for services rendered overseas cannot be taxed in India, even when such salary is paid into a bank account in India.

Shram Suvidha Portal

The Shram Suvidha Portal is a unified portal developed to facilitate all kinds of registrations and submit returns that are required under labour laws at a single online window. The main objective of this portal is to consolidate information for Labour Inspection and its enforcement.

The Unified Shram Suvidha Portal has been envisaged as a single point of contact between employer, employee and enforcement agencies bringing in transparency in their day-to-day interactions. This portal will be single point to monitor all labour compliance for the unit. For using this facility, every unit operating in the company must register themselves using Labour Identification Number (LIN) assigned to them.

The portal provides single sign for all labour compliance and act.

Click here to register:

To know your LIN number refer to the said link:


Annual Preventive Health Check-up Scheme under ESIC

The ESIC department is trying to create awareness among ESIC members about the annual preventive health check-up scheme.

The ESIC department has introduced the annual preventive scheme for Insured Persons (IPs) of the age of 40 years and above. This preventive health check-up includes general clinical examination, and the reports of the tests are uploaded online for future reference of the IP.

The IP can get the benefit at any ESIC-affiliated hospital.

To read further about the annual preventive check-up, please click on the link:

Minimum Wages in West Bengal Revised

The West Bengal Labour department has notified new revised minimum wages rate for the state.

The revised rates are applicable from 1st July 2018 to 31st December 2018:
Categories of Employees
Monthly Minimum Rates of Wages
Zone A Zone B
Unskilled ₹ 7,775.00 ₹ 7,202.00
Semi-Skilled ₹ 8,554.00 ₹ 7,920.00
Skilled ₹ 9,409.00 ₹ 8,713.00
Highly Skilled ₹ 10,349.00 ₹ 9,586.00

Increase Proposed for Professional Tax of Trichy (Tamil Nadu)

The professional tax rate for Trichy has been the same since October 2013. The Commissioner of Municipal Administration, Tiruchi Corporation, has decided to increase the professional tax by 30% by October 2018. This change has happened after five (5) years.

The proposed rate effective from 1st October 2018 will be:
Salary Range
PT Rate after 1 Oct 2018
Existing PT Rate applicable up to 30 Sept 18
₹ 21,001 and ₹ 30,000 169 130
₹ 30,001 and ₹ 45,000 429 330
₹ 45,001 and ₹ 60,000 858 660
₹ 60,001 and above 1,250  

Government to Conduct Surprise Visits to Catch TDS Defaulters

The Central Board of Direct Taxes (CBDT) has instructed their assessing officers (AO) to conduct at least 30 surveys to check defaults of Tax Deducted at Source (TDS) by government and private entities.

The AOs will keep a check on cases in the prosecution list where:
  • TDS/TCS was not deposited after deduction;
  • Trend of TDS payment was in stark contrast to other deductors in similar business;
  • Cases showing negative trend in payment;
  • Tax evasion petitions; and
  • Habitual late filers/non-filers of TDS statement.

As part of their survey, the tax department will pay a surprise visit to the business premises of organisations suspected of TDS default to inspect their account books and financial statements.


Minimum Wages in West Bengal Revised

Compliance Calendar for the month of August, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th August 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th August 18 Gujarat Gujarat PT regulations By Challan
20th August 18 Karnataka Karnataka PT regulations By Challan & Online
21st August 18 West Bengal West Bengal PT regulations By Challan
31st August 18 Assam & Orissa State-wise regulations By Challan
31st August 18 Maharashtra Maharashtra PT regulations Online
PF Central
15th August 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th August 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th August 18 TDS Payment for May 18 Income Tax Act, 1961 Online
31st August 18 (Extended) Individual Income tax return filing for AY 2018-19 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th August 18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
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Sources: Government Notifications, Circulars, Press releases.


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