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


NSDL releases new e-TDS/TCS Return Preparation Utility (RPU) version 1.7 for quarterly TDS/TCS return filing

The National Securities Depository Limited (NSDL) has released a new version (1.7) of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) for filing quarterly TDS and TCS returns. The new version has been applicable from September 2016 onwards for any subsequent TDS/ TCS filing.

The key features introduced in version 1.7:
  1. The NSDL has added new columns to capture the ‘PAN’ and ‘Name of the Landlord’ (a maximum of up to four landlords can be added) for employees whose aggregate rent payment exceeds rupees Rs. 1,00,000 during the previous financial year.
  2. The NSDL has also added new columns to capture PAN and ‘Name of the Lender’ (a maximum to four lenders can be added) for assessees claiming interest deduction under ‘Income from House Property’, for the previous year.
  3. In-case contributions towards the approved superannuation fund is paid by the trustees, the following details are to be captured for each contribution made:
    • Name of the superannuation fund
    • Date from which the employee has contributed to the superannuation fund
    • Date up to which the employee has contributed to the superannuation fund
    • The amount of contribution repaid after taking principal and interest into account
    • The average rate of deduction as tax during the preceding three years
    • The amount of tax deducted on repayment of superannuation fund
    • The gross total income of an employee including the contribution repaid as part of superannuation fund and also taking into account the principal and interest amount

Please download the new e-TDS/TCS Return Preparation Utility Version 1.7 from the following link: https://www.tin-nsdl.com/etds-etcs/etds-rpu.php

The Employees' State Insurance Corporation (ESIC) raises wage threshold to Rs. 21,000

The wage limit for an employee to be covered under the Employees’ State Insurance Act (1948) has been increased from Rs. 15,000 to Rs. 21,000 per month

This increase in coverage threshold will enable more employees to enjoy the health insurance, making them entitled to treatment during cases of sickness, maternity, disability or death due to injury during work (as prescribed under ESIC). The ESIC board has also decided to give an option to existing insured members to continue their membership even if their wage exceeds the ceiling limit of Rs. 21,000 per month.

The government’s official notification for enactment is pending.

Changes in Employee Pension Scheme (EPS), 1995 for family members amended

If a member does not take up employment and -

  1. has rendered less than 10 years of eligible service on the date of exit
  2. but dies before 58 years of age
  3. before a continuous period of 36 months has elapsed
  4. during which pension contributions have not been received

the amount of contribution towards pension scheme received shall be converted into a monthly widow pension or children pension.

Note: Widow pension is calculated as per Table `C’ of Employee Pension Scheme (EPS), 1995 and the children pension at 25% thereof for each child (up to 2 children).

At the instance widow pension doesn’t apply, the orphan pension shall be payable at 75% of the amount of widow pension subject to provisions of Para 16. Click here to refer to Para 16.

If the member does not take up employment and –

  1. has rendered less than 10 years eligible service on the date of exit
  2. but dies before 58 years
  3. after a continuous period of 36 months has elapsed
  4. during which pension contributions have not been received

his/her family shall be entitled to under Para 14 of Employee Pension Scheme (EPS), 1995 (as per Table ‘D’ of EPS, 1995).

The mentioned changes would be applicable with immediate effect.


Changes made on Shram Suvidha - Unified Portal for Labour and Employment

The Shram Suvidha portal acts as a single window of contact between the employee, employer and the Labour Department] facilitating reporting of inspections, accommodating unified submission of returns and consequently increasing transparency within the system.

Mentioned below are the recent changes brought within the portal:


  1. An easy-to-access link has been provided to re-assign any expired inspection to new enforcement officers who can undertake and complete the inspection as a fresh case under their respective names.
  2. New roles have been created to verify Labour Identification Number (LIN) generation and to complete the deduplication process and submit the consequent reports on a regular basis.
  3. A link has been provided to employers under their respective logins to verify the LIN data to check whether LIN is correctly linked to ESIC, Employees’ Provident Fund Organization (EPFO) number and other Acts.
  4. The login for role of Regional Head, Management of Information System (MIS) and Verifier has been created on the portal and any subsequent changes in jurisdiction of any Regional Head/Enforcement Officer can be updated on the portal easily.
Clarification on changes made to Provident Fund

Earlier, manual payment of Provident Fund was in such a way that the date on which cheques or demand drafts (presented by the employers to the bank), was considered as the actual date of payment – even though the deposit was credited to the Provident Fund (PF) account on a different date.

This later changed when the Provident Fund payments were made online on May, 2015.

Now, the government has clarified that, with the implementation of internet banking, the date of debit from the employer’s account may be taken as date of payment for the purpose of assessing damages by way of penalty.

A new Form 11 has been released to facilitate collection of UAN details

Previously, employers used to collect UAN and KYC details for all their new employees through Form 11. Consequently, based on the details provided by the employee, either a new UAN would be generated (or) a new PF account would be linked to the old UAN.

In September 2016, the Employees’ Provident Fund Organization (EPFO) released a new Form 11.

The new Form 11 would replace:

• Form 11 (Old): Declaration for UAN
• Form 13 (in restricted cases): If an employee has been allotted UAN earlier and his/her KYC details are verified by the previous employer, the employee is not required to file a separate Form 13 to transfer his/her PF balance.

Note: The employer or employee can access fillable new Form No.11 on the EPFO member portal which is pre-filled with all relevant information mentioned and updated in the database.
For the new Form No. 11 and notification: Click here

Instructions for employees having two Universal Account Numbers (UANs)

The Universal Account Number (UAN) is a unique number which is allotted to an employee by the Employees’ Provident Fund Organization (EPFO) and remains same throughout the career of an employee. However, there are chances that an employee has been allotted more than one UAN.

Two UANs can be allotted to an employee in the following instances:

• If an employee had worked in two different establishments between December 2013 and May 2014 and the date of exit was not filed by the previous employer.

• In case an employee did not share his/her previous UAN to their present employer (or) if a present employer considered him/her as a ‘first-time-employed’ and generates a new UAN.

Two methods that you could use in order to correct or merge both the UANs of an employee: First Method:
  1. The employee has to immediately report the issue either to an employer (or) to the Employees’ Provident Fund Organization (EPFO) via email by mentioning both – current UAN and previous UAN to the following email address – uanepf@epfindia.gov.in
  2. After verification, the previous UAN allotted to an employee will be blocked and the current UAN will be kept active.
  3. After the old UAN is deactivated, employees will need to ‘submit a PF amount transfer claim’ to get a transfer of fund to their current UAN.
Second Method:
  1. The employee is expected to apply for his/her EPF transfer from his/her previous EPF account to the new EPF account. This can be done online using Online Transfer Claim Portal (OTCP) of the EPFO (http://memberclaims.epfoservices.in/).
  2. The EPFO’s system would then automatically identify such cases where the EPF transfer has been initiated from one EPF account to another, and have two different UANs attached to these EPF accounts of the same employee.
    (This process of merging both UANs is automatic and the same will be processed on a periodic basis by EPFO department even if request is not initiated from the member’s end. All such identified old EPF UAN numbers, from which EPF transfer has been initiated to EPF account having different EPF UAN (new EPF UAN), will be deactivated.)
  3. After this, the old UAN numbers will cease to exist and blocked for further use and all employee’s previous EPF account will be linked to the new UAN.
  4. The employee will receive information about the deactivated status of his/her previous UAN via SMS to their registered mobile number. After which, the employee is expected to activate the new UAN (if it is not already done) to get the updated status of his/her EPF account.
  5. Sometimes, there are chances that an employee may have to receive some EPF arrears from his/her previous employers. In such cases, since the system knows the new UAN against the deactivated UAN, the system would automatically populate the new UAN in the Electronic Challan Remittance (ECR) (after the previous employer provides the previous UAN or EPF number) and the statutory contribution by the employer against the arrears can be remitted against new UAN.
A guide to the Pradhan Mantri Rojgar Protsahan Yojana Scheme (PMRPY)

The Pradhan Mantri Rojgar Protsahan Yojana scheme has been introduced by the government of India to ‘incentivize employers’ and ‘encourage job creation’ in market.

Under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme, the government of India will pay the Employee Pension Scheme (EPS) contribution of 8.33% for all new employees enrolling in the Employees’ Provident Fund Organization (EPFO), for the first three years of their employment. This is applicable only if the following conditions apply:

  1. The employee joins with a salary which is less than or equal to Rs. 15,000 per month
  2. The employee has joined the EPF fund for the first time, on or after 1st of April, 2016

Note: An additional 3.67% of employer PF contribution will be reimbursed for textile (apparel) industries alone.

The scheme has been applicable from the 9th of August, 2016 and the new eligible employees will be covered under the PMRPY scheme till the financial year 2019-20.

The government has recently released a notification providing guidance on the following:

  1. Process flow for enrolment and availing the PMRPY
  2. List of frequently asked questions (FAQs) and their solutions
  3. Standard Operating Process (SOP) for the PMRPY scheme

To read the recently released notification that provides guidance on the above mentioned points, click the following link: http://www.epfindia.com/site_docs/PDFs/Circulars/Y2016-2017/RI_PMRPY_17346.pdf

Compliance Calendar for the month of October, 2016 Due date States Existing rules Mode Professional Tax - States - Remittances 10th October 16 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th October 16 Gujarat Gujarat PT regulations By Challan 20th October 16 Karnataka Karnataka PT regulations By Challan & Online 21st October 16 West Bengal West Bengal PT regulations By Challan 30th October 16 Assam & Orissa State-wise regulations By Challan 30th October 16 Maharashtra Maharashtra PT regulations Online PF Central Due date Remittances Existing rules Mode 15th October 16 Remittance of Contribution EPF & MP Act, 1952 Online ESI Central 21st October 16 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online Due date Nature of transaction Existing rules Mode TDS 7th October 16 TDS Payment Income Tax Act, 1961 Online 31st October 16 TDS Return Income Tax Act, 1961 Online Labour Welfare Fund Remittances 5th of Every month Kerala (Kerala Shops & Establishment Workers Welfare Fund) Kerala State Labour Welfare Fund Offline Check out our latest blog posts Are You Ready for Unlimited Time-off?

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