Payroll and Compliance The Monthly Chronicle - July, 2016 Share us on           var switchTo5x=true;stLight.options({publisher: "a774d07d-a09d-4a2f-a103-57088fe922e2", doNotHash: false, doNotCopy: false, hashAddressBar: false, tracking: false}); ****** 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:

 Quarters Quarterly TDS returns due dates for filing from 1st June, 2016
(for both government and non-government deductors) 1st Quarter (April - June) 31st July of the financial year. 2nd Quarter (July - September) 31st October of the financial year. 3rd Quarter (October - December) 31st January of the financial year. 4th Quarter (January - March) 31st May of the financial year that subsequently follows the financial year in which deductions are made.

The new versions of e-TDS/TCS, Return Preparation Utility (RPU) and File Validation Utilities (FVUs) have been made available at the TIN ((Tax Information Network) website. They are applicable from 28th June, 2016. Click here for the URL

Henceforth, the same files are to be used for filing quarterly returns (i.e. starting from July, 2016 onwards). There are no changes or impact on format of 24Q (TDS return filing form).

Changes in TDS return 24Q format

The Indian government, via Notification No. 30/2016 (Dated: 29.04.2016), has requested that additional details be furnished while filing TDS returns under 24Q form for TDS deducted on salary paid.

S.No. Particulars Details 1 House Rent Allowance Name and Permanent Account Number (PAN) of the landlord if the rent paid is in excess of ₹1,00,000 per annum. 2 Income from House Property Name and Permanent Account Number (PAN) of the lender (or) financial institution (or) employer from whom loan is taken. EDLI increases the insurance benefit to ₹6 Lacs

Employee Deposit Linked Scheme (EDLI) is an insurance policy to give lifetime coverage to the employees from the organized sector. It is a group term insurance.

The family of the employee gets the sum assured if an employee dies during the service period. It is applicable to the entire organization and is part of the EPF (Employee Provident Fund).

The Employee Provident Fund department has increased the EDLI benefit quantum to 30 times of last drawn (12 months before an employee’s death) average salary (subject to a maximum of ₹15,000 per month). Excluding this, the family of the deceased employee is entitled to 50% of the average balance in the employee’s PF account (subject to ₹1,50,000). However, the total EDLI benefit ceiling should not exceed ₹6,00,000 for beneficiaries.

  • LTA (Leave Travel Allowance) / LTC (Leave Travel Concession)
  • HRA (House Rent Allowance)
  • Interest payable on Home Loan (Section 24)
  • All tax deductions under Chapter VI-A which relates to allowable deductions under various sections including Section 80C, Section 80CCC, Section 80CCD, Section 80D and all subsequent sections under Chapter VI-A.
  • --> ESIC offers free Annual Preventive Health Checkup

    Employee State Insurance Corporation (ESIC) has introduced an Annual Preventive Health Checkup program for people who are insured under the ESI provision and, are of 40 years and above. This checkup would be conducted across all ESIC affiliated hospitals and equipped dispensaries.

    The health checkup will include the following examinations:

    1. General Examination
    2. HB (Haemoglobin test), TLC (Total Leukocyte Count test), DLC (Differential Leukocyte Count test), ESR (Erythrocyte Sedimentation Rate test)
    3. Random Blood Sugar Test
    4. Kidney Function Test
    5. Liver Function Test
    6. Urine - Routine and Microscopy
    7. X-Ray Chest - PA View
    8. ECG

    Furthermore, the health record for each individual would be uploaded and maintained on an electronic format with ESIC.

    Section 192A: Withdrawal of Provident Fund changes

    The Central Board of Direct Taxes has declared that from 1st June 2016, income tax shall be deducted on withdrawal of PF (Provident Fund) accumulated balance if the following conditions apply:

    1. If withdrawal is made within 5 years of completed service
    2. If the withdrawal amount is more than or equal to ₹50,000 (Prior to June, 2016 the limit was ₹30,000)

    Therefore, TDS will be deducted at 10% (provided PAN is submitted). However, if Form No. 15G or 15H is submitted by the member, then no TDS shall be deducted.

    In contrast, TDS will be deducted at maximum marginal rate (i.e. 34.608%) if a member fails to submit PAN or Form No 15G or 15H. In case PF is withdrawn after 5 years, then there is no TDS liability on the same.

    The threshold limit for wage exemption changed by the Employee State Insurance Corporation (ESIC)

    Employee contribution towards Employee State Insurance Scheme is exempt when an employee’s daily average wage does not exceed the threshold limit. From June 2016, the average daily wages during a wage period eligible for exemption has been changed from ₹100 to ₹137.

    EPFO to provide increased to pensioners if they defer withdrawal

    In case an individual puts off the withdrawal and doesn’t withdraw the accumulated balance in their PF, they will earn a 4% increase in pension for each year after 58 years, up to 60 years. (I.e. 4% in case of one completed year and 8.16% in case of two completed years)

    This notification by the government is said to take retrospective effect from the 25th of April, 2016. It is applicable only for members who have completed 10 years of service. Members are requested to apply for the above scheme by submitting a request letter to their respective field offices.

    Pension claim procedures, simplified

    So far, to claim pension payment from the provident fund department, individuals had to file Form 10D after appropriate attestation from their respective employers.

    However, as per the changes in the current amendment, an employee has the option to submit the claim Form 10D (UAN – Universal Account Number) directly to the respective jurisdictional Employee’s Provident Fund Office, without their employer’s attestation, given they satisfy the below conditions:

    1. The AADHAR Card Number and Bank details must be seeded and digitally verified by their employers
    2. All pertinent details of employee is available in Form 11
    3. A cancelled cheque containing Name of Bank, IFSC code and Account Number is attached with the claim form.
    4. ⪫ Their AADHAR Card Number and Bank details must be seeded and digitally verified by their employers -->

    In case an employee doesn’t satisfy the above conditions, they must file Form 10D and get it attested from their employer and submit it to the respective jurisdictional Employee’s Provident Fund Office for pension payment claims.

    Compliance Calendar for the month of July, 2016 Due date Nature of transaction Existing rules Mode Professional Tax - States - Remittances 10th July 16 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th July 16 Gujarat Gujarat PT regulations By Challan 20th July 16 Karnataka Karnataka PT regulations By Challan & Online 21st July 16 West Bengal West Bengal PT regulations By Challan 31st July 16 Assam & Orissa State-wise regulations By Challan 31st July 16 Maharashtra Maharashtra PT regulations Online PF Central 15th July 16 Remittance of Contribution EPF & MP Act, 1952 Online ESI Central 21st July 16 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online TDS 7th July 16 TDS Payment Income Tax Act, 1961 Online 31st July 16 TDS Return Income Tax Act, 1961 Online Labour Welfare Fund Remittances 31st July
    Chattisgarh State-wise regulations Offline 15th July - 1st Half yearly New Delhi State-wise regulations Offline 31st July - 1st Half yearly Goa State-wise regulations Offline 15th July - 1st Half yearly Gujarat Gujarat Labour Welfare Fund Offline 5th of Every month Kerala (Kerala Shops & Establishment Workers Welfare Fund) Kerala State Labour Welfare Fund Offline 31st July - 1st Half yearly Madhya Pradesh Madhya pradesh Labour Welfare Fund Offline 15th July - 1st Half yearly Maharashtra Maharashtra Labour Welfare Fund Offline 15th July - 1st Half yearly West Bengal West Bengal Labour Welfare Fund Offline Check out our latest blog posts Positive Impact on Society

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