Payroll and Compliance The Monthly Chronicle - May 2016 New e-TDS/TCS File Validation Utility (FVU) version 2.146 and 5.0 released

(With effect from April 13, 2016)

Key Features of e-TDS/TCS FVU version 2.146 for FY 2007-08 to FY 2009-10 and 5.0 for FY 2010-11 onwards:
  1. 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.
  2. It is mandatory to mention the email id and mobile number of the Deductor/Collector and the responsible person in TDS/TCS Statement.
  3. Click here to view the TDS Upload-User Manual
Changes in TDS filing due date and format for furnishing evidence for tax deduction claim.

Key highlights of Notification No. 30/2016 (Dated: 29.04.2016) is as below:

  1. Changes in Form 24Q filing due dates
  2. Insertion of new columns in form 24Q
  3. New format to collect tax proof documents
24Q due dates changes:

To bring uniformity and to give deductors sufficient time in filing of TDS Statement, CBDT has revised due date for filing TDS statements for Government and non-government deductors with effect from 1st June, 2016 to as follows:

Quarters Quarterly TDS returns due dates for filing
Till FY 31st May 2016 Quarterly TDS returns due dates for filing
From 1st June 2016 1st Quarter (April - June) 15th July of the financial year. 31st July of the financial year. 2nd Quarter (July - Sept) 15th October of the financial year. 31st October of the financial year. 3rd Quarter (Oct - Dec) 15th January of the financial year. 31st January of the financial year. 4th Quarter (Jan - Mar) 15th May of the financial year, that immediately follows the financial year in which deductions are made. 31st May of the financial year, that immediately follows the financial year in which deductions are made. Form 16 due dates:

The Form 16 due-date is still not clearly defined in the notification. We await further clarification on the due dates of Form 16 and 16A. Currently, as per Section 203 (Income Tax Act) read with rule 31, the due dates are:

Form Period Due date Form 16 Annual By 31st of May of the financial year, that immediately follows the financial year in which the income was paid and tax has been deducted. Form 16A Quarterly Within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A. Insertion of new columns in form 24Q:

In annexure II, after the entry 356, the following details must be furnished:

S.No Particulars Details 357 House Rent Allowance Name and PAN of landlord if the rent paid in excess of Rs.1,00,000 per annum.  358 Income from house property Name and PAN of lender. Form 12BB

Presently, employees have to provide self-declaration of all investment details to the employer along with documentary proofs to claim the tax exemption for the financial year. There was no prescribed format. On the basis of declaration submitted, the employer would deduct the TDS.

But, now government via Notification No. 30/2016 (Dated: 29.04.2016) has provided a format in which investment details needs to be submitted. The format released is: Form 12BB under section 26C.

The major highlights or changes brought under Form 12BB in line with section 192 are given below: S.No Nature of Claim Evidence required 1 House Rent Allowance  (HRA) Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds Rs.1,00,000 Lakh. 2 Leave Travel Concession (LTA) Evidence of expenditure 3 Income from house property Name and PAN of landlord if the rent paid in excess of Rs.1,00,000 per annum.  4 Deduction under Chapter VI-A Evidence of investment or expenditure

The source link for notification no: 30/2016

EPFO rolls back restrictions on the latest amendment in PF rules

Pursuant to a roaring opposition, EPFO have cancelled the Notification (Dated 19.04.2016) that had brought severe restrictions on withdrawal of Employees’ Provident Fund (EPF).

S.No Subject Relevant existing provisions of the EPF Scheme, 1952 Amended Scheme as per Notification dated 10.02.2016 EPFO’s latest Announcement of changes dated 19.04.2016 1 Withdrawal on cessation of employment A member can withdraw full amount from their PF fund in case of termination of employment and subsequently if the person is not employed in a covered establishment for two months. A member cannot withdraw an employer’s contribution, including interest thereon, until retirement or until they attain 58 years of age (whichever is later). The Amendment is withdrawn and the earlier provision is applicable. 2 PF Membership The membership in the fund will terminate, when a member ceases to be an employee in a covered establishment for 60 days, and withdraws the full amount standing to their credit. A member cannot withdraw an employer’s contribution until retirement, or until they complete 58 years’ (whichever is later). Until such time, their membership in the fund will continue. The Amendment is withdrawn and the earlier provision is applicable. 3 Age limit for partial withdrawal A member may withdraw up to 90% of PF balance at any point of time, after attaining 54 years of age, or within one year before their actual retirement on superannuation (whichever is later). The age limit was proposed to be increased from 54 to 57 years. The Amendment is withdrawn and the earlier provision is applicable. 4 Retirement Age A member may withdraw the full amount standing to their credit in the Provident Fund on retirement from service, after attaining the age of 55 years. The age limit was proposed to be increased to 58 years. The Amendment is withdrawn and the earlier provision is applicable.

Now, the ministry has also proposed that PF subscribers should be allowed to withdraw their retirement fund for the purpose of housing, medical emergencies, the education of their children and their marriage. This may come into effect from 1st August, 2016.

The finance minister has approved the proposal for an 8.8% interest rate on PF deposits for FY 2016-17. The reduction is in line with proposed cut in small saving rates. We are awaiting official notification on the same.

ESIC Interest Calculation Changes

As per the Memorandum/Instruction issued on 08.04.2016 by ESI Corporation, it has been decided that the interest on ESI contribution payable on omitted wages, shall be calculated calendar month-wise. Prior to above instructions, the interest on left-out/omitted wages reported by the Social Security Officer/Test Inspecting Officer, where the number of employees, employee-wise details of wages paid, and if period of engagement of such employees was not available, the claim is to be made after allowing a grace period of 21 days, from the date of demand letter/C-18 notice from the Regional/Sub-Regional Office.

AADHAR enabled authentication in ESIC

ESIC proposes to implement Aadhar based authentication with effect from 1st Feb, 2016, in addition to the existing 'e-pehchan'. If Aadhar number is submitted then e-pehchan card will be valid till the eligibility for treatment exists. If Aadhar number is not submitted, then e-pehchan card would be eligible only for 30 days; and the insured person will be required to either get the Aadhar number seeded in the ESIC database in order to extend the validity of their e-pehchan card, or to get themselves and their family members enrolled for a biometric pehchan card by visiting the pehchan camps organised by ESIC.

Haryana proposes change in labour laws Industrial Disputes, Haryana Amendment Bill, 2016

This Bill proposes to allow enterprises with up to 300 employees to lay off workers without the government’s permission.

Contract Labour (Regulation and Abolition) Haryana Amendment Bill, 2016

The Bill proposes to do away with the condition of registration for industrial establishments, employing up to 50 workers (the current limit being 20 workers), under the Contract Labour (Regulation and Abolition) Act 1970.

Payment of Wages, Haryana Amendment Bill, 2016

It is proposed that, the central government becomes the competent authority to fix or revise wage limits for people employed in industrial establishments. The existing limit of such wage is Rs. 18,000 per month. The amendment would provide remedy to those who are getting wages at higher rates and enable them to agitate their claim in case of delayed payment of wages, or illegal deduction from the wages.

Factories, Haryana Amendment Bill, 2016

The amendment would enable factories with 20 workers with aid of power, and 40 workers without the aid of power, to be exempted from the definition of Factories Act, 1948. Furthermore, Haryana State is now on-board of Shram Suvidha Portal.


  West Bengal allows self-declaration for minimum wages

The West Bengal government has emphasized their priority in simplifying the rules and procedures around ‘minimum-wages’ as they feel that there is a substantial need for it.  Moreover, to provide hassle free statutory clearance and facilitate a conducive environment for rapid industrialization, the West Bengal government has decided to accept self-certification by owner under Minimum Wages Act. The format for self-certification is attached for your reference:

Bonus Amendment retrospective effect stayed by 8 state high courts

The retrospective effect on Payment of Bonus Act, 2015, was made effective from 1st April, 2014, while the original Bill was said to become effective from 1st April, 2015. But, state-level industry bodies from across the country approached the courts for relief against the same. In response, at least 8 high courts (Kerala, Karnataka, Allahabad, Madras (Chennai), Rajasthan, Gujarat, Punjab & Haryana and Madhya Pradesh) have passed an interim order staying the retrospective effect from 1st April, 2014.

Which ITR to file? Major changes in case of Individual and HUF returns in 2016:
  1. Declaration of value of assets and liabilities by Individuals/HUF earning above Rs.50 lakhs.
  2. TCS credit for individual taxpayers.
  3. Additional deduction for contribution to NPS under Section 80CCD.
  4. Details of income of business trust or investment fund.
Compliance Calendar for the month of May, 2016 Due date Nature of transaction Existing rules Mode Professional Tax - States - Remittances 10th May 16 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th May 16 Gujarat Gujarat PT regulations By Challan 20th May 16 Karnataka Karnataka PT regulations By Challan & Online 21st May 16 West Bengal West Bengal PT regulations By Challan 30th May 16 Assam & Orissa State-wise regulations By Challan 30th May 16 Maharashtra Maharashtra PT regulations Online PF Central 15th May 16 Remittance of Contribution EPF & MP Act 1952 Online ESI Central 21st May 16 Remittance of Contribution (Main code and Sub Codes) ESIC Act 1948 Online TDS 7th May 16 TDS Payment Income Tax Act Online 15th May 16 TDS Q4 FY 2015-2016 Income Tax Act Online Labour Welfare Fund Remittances 20th May 16 Kerala State-wise regulations By Challan Sources: Government Notifications, Circulars, Press releases. Share us on           var switchTo5x=true;stLight.options({publisher: "a774d07d-a09d-4a2f-a103-57088fe922e2", doNotHash: false, doNotCopy: false, hashAddressBar: false, tracking: false});


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