Payroll and Compliance - The Monthly Chronicle

June 2018

 
 

Webinar: Top Tips for Filing your Income Tax Returns

As we approach 31 July 2018, we have our Form 16 and are ready to file our Income Tax returns. But we’re also not completely sure of the details of filing our returns. Sounds familiar?

ADP is happy to present a webinar on Top Tips for Filing your Income Tax Returns. In this webinar, we will discuss Form 16, Form 26AS, which Return to choose for filing, the Dos and Don’ts for filing IT returns, and more.

Please register here for this webinar.

Date : 27 June 2018 (Wednesday)
Time: 3pm to 3:45pm

 
 
 

Provident Fund Administration Charges Amended

Administration charges under the Provident Fund scheme have been amended to 0.5% (the earlier rate was 0.65%).

The above 0.5% rate is subject to a minimum of ₹ 75/- per month for every non-functional establishment having no contributory member, and ₹500/- per month per establishment for any other establishments.

The said changes are applicable to salaries pertaining to the wage month effective from 1 June 2018.

 
 

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Thus, the standing contribution rates under the Provident Fund schemes are:

Scheme Name Employee contribution Employer contribution
Employee Provident Fund (A/C 1) 12% 3.67%
Employees’ Pension Scheme (A/C 10) 0 8.33%
Employees’ Deposit-linked Insurance (A/C 21) 0 0.50%
EPF Administrative Charges (A/C 2) 0 0.50% (min ₹ 75 or ₹ 500, as the case may be)
Total 12% 13.00%

To read the official notification, please refer to the link: http://egazette.nic.in/WriteReadData/2018/185703.pdf
 
 
 

Income Tax Return Filing: Changes & Amendments

The Individual Income Tax Return due date for filing for FY 2017-18 is 31 July 2018. The updated forms are released and we all can start filing the points. But before filing, let us take you through the many changes that have been made in the form for the year.

There are over 25 changes in the current year Income Tax Return (ITR) forms this year across all the forms meant for individuals, businesses and other assessees. But we will only talk about the details and changes made in ITR 1. A few important changes made in ITR are as follows:

  • The new ITR-1 Sahaj form would seeks details about income from property, such as gross rent received/ receivable/ let-out value and tax paid to local authorities etc.
  • An individual has to provide details of break-up of salary, i.e perquisite value and other specific details as asked while submitting the return.
  • A new field has been introduced to disclose the TDS paid on rent payment. The Individual now can claim credit for any TDS paid.
  • The new ITR forms have specific columns to report each capital gains exemption separately. Details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F are to be reported in its applicable column now. A taxpayer who has earned capital gains exemptions has to mention the date of transfer of original capital asset, which was missing in earlier ITR forms.
  • The other details viz., Aadhaar linking with the ITR and penalty on delayed filing remains the same.
The link to the new ITR-1 is here: https://www.incometaxindia.gov.in/forms/income-tax%20rules/2018/itr1_english.pdf
 
 
 

Professional Tax Rate for Chennai City Amended

Chennai City Corporation has increased the half-yearly Professional Tax rates as follows:
 

Salary Range (in ₹) Old rates up to 31 March 2018 (in ₹) New rates from 1 April 2018 (in ₹)
Up to 21,000 0 0
21,001 - 30,000 100 135
30,001 - 45,000 235 315
45,001 - 60,000 510 690
60,001 - 75,000 760 1025
75,001 and above 1095 1250
The above changes are applicable from 1 April 2018.
 
 
 

Proposal to Amend Professional Tax Rate for State of Madhya Pradesh



Old Professional Tax rates (till 31 March 2018):
S. No Professional Tax applicable Salary Range Per Month Professional Tax Rate Per Month
1 Up to ₹ 14,999 Nil
2 ₹ 15,000 and above ₹ 208 (April to Feb) &₹212 in March


New Professional Tax rates (proposed from 1 April 2018):
S. No Professional Tax applicable Salary Range Per Month Professional Tax Rate Per Month
1 Up to ₹ 18,749 Nil
2 From ₹18,750 to ₹25,000 ₹125 (April to March)
3 From ₹25,001 to ₹33,333 ₹167 (April to Feb) & ₹163 in March
4 ₹33,334 and above ₹208 (April to Feb) & ₹212 in March
The above changes once passed will be applicable from 1 April 2018.
 
 
 

Provident Fund Rate of Interest Lowered for FY 2017-18

The EPFO department has lowered the rate of interest to 8.55% for FY 2017-18. This is the lowest rate in the past five years.
For more details, please refer to the official site: https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2018-2019/Invest_ROI_2017-18_4153.pdf

 
 
 

Clarification Regarding Trade/Sale/Purchase of Securities by the Trusts of EPF Exempted Establishments

The Ministry of Labour & Employment has prescribed the pattern of investment which is required to be followed by the Trusts of establishments exempted from the operation of EPF Scheme.

There were conflicting statements in para 4-5 & condition 20 for investment schemes. Thus, the government has released the clarification that: exempted establishments are required to obtain the prior permission of the Regional PF Commissioner for selling of securities if and only if the Trusts have to utilise the amount obtained through sale of securities for meeting the obligatory expenses arising out of any of the reasons.

Thus, the Trusts of exempted establishments can easily enable trade of securities, unless they are in compliance with the instructions contained in the notification.

To read further details in the notification, please visit the official site: https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2018-2019/Exem_Clarification_Securities_Trust_3990.pdf
 
 
 

New Initiatives by EPFO to Provide Timely Information to All Subscribers

The EPFO has started a number of e-initiatives to provide services and timely information to its entire subscriber base on a timely basis. Under these initiatives, the EPFO has so far been intimating its members by way of SMS on credit of their respective monthly contribution into their accounts.

Now, the complete PF information is available through e-passbook online and the UMANG mobile app and also through missed-call service for all members. EPFO members whose monthly contribution is regularly received may now view their contribution details using any of these options.

It has been decided that an intimation by way of SMS/email shall be sent to members who have registered their mobile number / email ID against the respective Universal Account Number. Thus, it’s very important to enroll active email and phone numbers into UAN portals.

To read more, please refer to the official communication: http://pib.nic.in/newsite/PrintRelease.aspx?relid=178916
 
 
 
 
Compliance Calendar for the month of June, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th June 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th June 18 Gujarat Gujarat PT regulations By Challan
20th June 18 Karnataka Karnataka PT regulations By Challan & Online
21st June 18 West Bengal West Bengal PT regulations By Challan
30st June 18 Assam & Orissa State-wise regulations By Challan
30st June 18 Maharashtra Maharashtra PT regulations Online
 
PF Central
15th June 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th June 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
TDS
7th June 18 TDS Payment for May 18 Income Tax Act, 1961 Online
15th June 18 Form 16 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th June 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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