MONTHLY NEWSLETTER MONTH JULY-12 VOL. 3ISSUES - 8 Inside This Issue : Latest News pg. 2 TDS rate chart FAQ's on PF E-Passbook ToDo List Latest Case laws pg. 3 pg. 4,7 pg. 8 pg. 10 Special points of interest : About NAIP Providing Excellence through Professionalism NAIP's mission: Being the national governing body for the payroll profession in India, similar to other international payroll & professional counterparts in the UK, USA, Canada, Australia & South Africa; Being the leading education, training & professional qualifications provider for the Indian payroll industry; Being the industry benchmark for Indian payroll qualification & training; Being a body recognised by a global payroll industry, in respect of the provision of internationally recognisable & transferable skills; Being a key contributor to Indian Government strategy within the payroll & taxation arena; Bonus pg. 9 Please send us your valuable comments, questions, complaints and /or suggestions to NAIP. Please send information you would like to share, either professional or personal to feedback@naip.in, 1
PROVIDENT FUND 1.Now just log on to EPFO website to check your monthly balance NEW DELHI: Over 50 million subscribers of the retirement fund body EPFO can obtain epassbook along with details of their updated accounts online from on Wednesday. "The EPFO subscribers can get their statement of accounts online from today," Central Provident Fund Commissioner R C Mishra said while addressing a seminar on Employees' Provident Fund Act by the PHDCCI here. 2.How to extend PPF account (on 3-7-12, in ET.) ESIC On maturity, the investors have the option of extending the account for blocks of five years each. The extended account will continue to earn interest at the rate notified each year. The flexibility to withdraw funds from the account after it is extended is much more than in the initial subscription period. 1.State will get up to 1,000 medical seats by next year'-hyderabad. 2.Software firms are factories: High Court - MUMBAI: Software development is a "manufacturing process" said the Bombay high court and firms involved in creating computer software are "factories" under the Employees State Insurance Act. The HC held that IT and the software industry are liable to pay a contribution as demanded by the Employees' State Insurance Corporation. As a consequence eligible employees of computer software companies are entitled to benefits under the ESI Act. (on 18-7-12, TOI) 2
TDS Rate chart for FY 2012-13 Sl. No. Section Of Act Nature of Payment in brief Cut Off Amount Rate % 01.04.2012 01.07.2012 HUF/IND Others 1 192 Salaries Salary income must be more then exemption limit after deductions. Average Rate 2 193 Interest on debentures 2500 2500 10 10 3 194 Deemed dividend - - 10 10 4 194A Interest other than Int. on securities (by Bank) 4A 194A Interest other than Int. on securities (By others) 10000 10000 10 10 5000 5000 10 10 5 194B Lottery / Cross Word Puzzle 10000 10000 30 30 6 194BB Winnings from Horse Race 5000 5000 30 30 7 194C(1) Contracts 30000 30000 1 2 8 194C(2) Sub-contracts/ Advertisements 30000 30000 1 2 9 194D Insurance Commission 20000 20000 10 10 10 194EE Payments out of deposits under NSS 2500 2500 20-11 194F Repurchase of units by MF/UTI 1000 1000 20 20 12 194G Commission on sale of lottery tickets 1000 1000 10 10 13 194H Commission or Brokerage 5000 5000 10 10 14 194I Rent (Land & building) 180000 180000 10 10 Rent (P & M, Equipment, furniture & fittings) 15 194J Professional/Technical charges/royalty & Non-compete fees 180000 180000 2 2 30000 30000 10 10 16 194J(1)( BA) Any remuneration or commission paid to director of the company(effective from 1 July 2012) NA NIL 10 10 17 194LA Compensation on acquisition of immovable property 100000 200000 10 10 18 19LLA Payment on transfer of certain immovable property other than agricultural land (Finance Minister has withdraw TDS on such transaction on 07/05/2012) (a) INR 50 lakhs in case such property is situated in a specified urban agglomeration; or(b) INR 20 lakhs in case such property is situated in any other area) withdrawn by Finance Minister on 07/05/2012 no tds on such transactions withdrawn by Finance Minister no no tds on transfer of immovable property 3
FAQ on PF Employee Passbook 1. What is Member Portal? A - Member Portal is for Employee, Where Employee can check own PF Status. 2. What is E-Passbook? A - E-Passbook is the employee Provident Fund status book (PDF). Employee can check own PF status 3. REG 01: WHO CAN REGISTER ON THE MEMBER PORTAL? A -any member of the employees' provident fund can register. at the time of registration, details of the pf account(s) is not required. 4. REG 02: WHAT ARE THE ADVANTAGES OF REGISTRATION? A - only a registered member can download his/her pf account passbook. passbook will be available for immediate download only for the active members for whom the employer has uploaded an electronic challan cum return (ecr) and remitted the dues. for members who have left the service before march 2012, the pass book will be made available if the member makes a request for the same on the portal. pass book of members having inoperative or settled accounts will not be displayed on the portal. 5. REG 03: CAN A MEMBER CREATE HIS OWN USER ID AND PASSWORD ON THE PORTAL? A - no. any chosen document number as in pan, aadhar, passport, etc will be the user id and mobile number will be the password. the member will not have to remember the user id and password in such case. 6. REG 04: CAN A PF MEMBER WORKING FOR AN ESTABLISHMENT EXEMPTED UNDER THE EPF SCHEME ALSO AVAIL BENEFITS UNDER THE PORTAL? A - no. the provident fund accounts in such case are maintained by the respective trust and pass book for such member cannot be displayed through the member portal. 7. REG 05: A REGISTERED MEMBER HAS LOST/CHANGED HIS EXISTING MOBILE NUMBER. CAN HE/SHE CHANGE THE MOBILE NUMBER ON THE PORTAL? A - yes, he/she can change the mobile number. facility to edit the mobile number has been provided on the portal. the member has to login using his/her id and old mobile number and then edit the existing mobile number. he/she will get a pin through an sms on the new mobile number to complete the process. 8. REG 06: WHAT ARE THE ADVANTAGES OF ADDING MULTIPLE DOCUMENT NUMBERS ON THE PORTAL? 4
A - the member may at any point of time be carrying any of the various documents such as pan, aadhar, passport, bank pass book. adding the multiple numbers gives him/her an advantage of using any of the number to log in and download his/her pass book. he/she will also not have to remember as to which document he/she had used for registration. 9. REG 07: IF ANY DOCUMENT NUMBER IS WRONGLY ENTERED, CAN IT BE EDITED? A - yes, the number can be edited. however the document number used for log in at the time of editing is blocked. for example, if a member has logged in using his/her pan, he/she can edit any other document number but not the pan. for editing pan if wrongly entered he/she will have to log in with some other document number already added. 10. REG 08: WHY FOR EACH TRANSACTION THE MEMBER HAS TO GET AND ENTER THE PIN RECEIVED ON HIS/HER MOBILE NUMBER? A - this is to ensure that the portal is not misused by any other person who may know the document number and mobile number of any other member. the record of the mobile number used for registration and for each transaction will be maintained in the data base and in case of any complaint, action may be taken on the basis of the mobile number used. thus this is only to safeguard the interests of the members. 11. REG 09: A MEMBER HAS USED ONE IDENTITY DOCUMENT TO REGISTER AND HAS FORGOTTEN THE SAME. CAN HE/SHE REGISTER AGAIN USING HIS/HER MOBILE NUMBER? A - no. one mobile number can be used only for one registration. however he/she can click on the 'forgot login' link under the fields for document number and mobile number to get through sms his/her document details used for the registration. 12. PB 01: HOW CAN A MEMBER DOWNLOAD HIS/HER PASS BOOK? A - after login the member has to use the download e passbook link on the portal. he/she has to select the state under which the establishment is covered and then the epfo office that maintains his/her account. he/she will be asked to enter the code number, account number and his/her name. if the passbook is available he/she will get a pin on his/her mobile number and on entry of the pin he/she will get the link for the pass book. he/she can open and save the pass book on his/her computer. 13. PB 02: WHAT ENTRIES WILL BE SHOWN IN THE PASS BOOK? A - month and date wise transactions made in member's account will be displayed in the pass book from the year for which the annual accounts were updated for the establishment for the first time since computerisation of the concerned field office. for example if the first annual accounts of member's establishment were updated for the year 2008-09 by the concerned field office after its computerisation, the pass book will display the opening balance for year 2008-09 and all transactions thereafter. 5
14. PB 03: A MEMBER HAS LEFT SERVICE BUT NOT APPLIED FOR SETTLEMENT OF HIS ACCOUNT. CAN HE/SHE DOWNLOAD HIS/HER PASS BOOK? A - members who has left service can make a request for their pass book through the member portal. once his/her request is accepted on the portal, he/she will receive an sms when the passbook is made available on the portal. he/she can then login and download the pass book. passbook will however not be made available if the member's account has become inoperative (no contribution received for 36 months or more) or if it is settled. pass book will be available for immediate download for active members only for whom the employer has uploaded the electronic challan cum return (ecr) and has made the payment. 15. PB 04: THE MEMBER HAS GOT THE PIN ON HIS MOBILE NUMBER WHILE DOWNLOADING THE E PASSBOOK. BUT THE FIELD FOR ENTRY OF THE PIN IS NOT ALLOWING ENTRY. WHAT TO DO? A - the field for entry of pin allows enter only when the member has clicked on the check box with 'i agree' meaning that he/she is declaring that the account number he/she has entered is his/her account and that in case of amy misuse or complaint his/her details can be used for suitable action. 16. PB 05: A MEMBER WORKING FOR AN ESTABLISHMENT EXEMPTED UNDER THE EPF SCHEME WANTS TO DOWNLOAD HIS/HER PASS BOOK. IS IT POSSIBLE? A - no, the p f accounts of the exempted establishment are maintained by the respective trusts and pass book of such member cannot be displayed from this portal. 17. PB 06: WHILE DOWNLOADING THE E PASS BOOK A MESSAGE APPEARS YOU HAVE ENTERED INVALID MEMBERS ID OR NAME WHAT TO DO? A - please check whether you have entered the correct code & account number and/or name. in case yes, the name may not be matching as per the record in epfo. in such case the member has to contact the concerned epfo office. 18. PB 07: THE MEMBER HAS DOWNLOADED HIS/HER PASS BOOK BUT THERE IS SOME ERROR IN THE NAME. WHAT TO DO? A - at present the name as appearing in the pass book cannot be changed. 19. PB 08: A MEMBER HAS DOWNLOADED HIS/HER E PASS BOOK. HOWEVER THERE ARE SEVERAL MISSING ENTRIES IN THE CONTRIBUTIONS. WHAT TO DO? A - the member should check first with the employer whether the returns for the month/year related to the missing entry has been submitted by him to the concerned epfo office. in case yes then he/she can contact the concerned epfo office regarding the missing details. 6
20. PB 09: A MEMBER HAS DOWNLOADED HIS/HER E PASS BOOK. HOWEVER THE CONTRIBUTIONS DISPLAYED ARE LESS THAN THE ACTUAL DUES AS PER HIS/HER WAGES. WHAT TO DO? A - he/she should check with the employer as to what amounts have been shown in the returns. in case of any grievance, he/she should contact the concerned pf office. 21. PB 10: A MEMBER HAS ATTEMPTED TO DOWNLOAD THE E PASS BOOK. HE IS NOT GETTING THE PIN. WHAT TO DO? A - he/she should check the message displayed on the screen. if the message states that pin has been sent and the pin is not received, it may be because the line is very busy. in such case it is advised to wait for some time and try again. 22. PB 11: A MEMBER HAS TWO ACCOUNTS IN THE SAME ESTABLISHMENT? HOW CAN HE/SHE DOWNLOAD THE PASS BOOK FOR BOTH? A - out of the two accounts under the same establishment one will definitely be closed and the second account may be the active one. the member should apply in form 13 to get the old account transferred to the active one. after transfer the amount will be added to the active account and will be displayed in the pass book. 23. PB 12: CAN THE MEMBER DOWNLOAD THE PASS BOOK OF AN ACCOUNT MULTIPLE TIMES? A - yes. with the launch of electronic challan cum return the members account will be credited with the monthly contribution amount each month. the member can download the e pass book any number of times (every month) to check the latest details. 24. PB 13: A MEMBER HAS AN ACTIVE ACCOUNT BUT SOME OF THE EARLIER ACCOUNTS HAVE BECOME INOPERATIVE. HOW CAN HE/SHE GET THE DETAILS OF SUCH ACCOUNTS THROUGH THE PORTAL? A - e pass book of inoperative accounts will not be displayed. however the member should apply in form 13 to get the earlier account transferred to the active account. in such case the details of the amount will appear in the pass book of the active account. 25. PB 14: A MEMBER DOES NOT KNOW THE EPFO OFFICE UNDER WHICH HIS/HER ESTABLISHMENT IS COMPLYING. HOW CAN HE/SHE DOWNLOAD HIS/HER PASSBOOK? A - the member can use the establsihment search facility on the epfo website to get the details of the office and also the code number of the establishment. 7
TODO LIST - JULY 2012 Due Date Act Form Description 07/07/2012 Income Tax Challan No.ITNS-281/17 Payment of TDS/TCS monthly 15/07/2012 Income Tax Return No.24Q, 26Q 27Q & 27EQ 15/07/2012 Provident Fund Electronic Challan cum Return (ECR) TDS returns for Quarter for non-govt deductors & TCS Returns for ALL Deductors E-Payment of PF 15/07/2012 LWF Challan Labour Welfare Fund 21/07/2012 ESI ESI Challan Payment of ESI of Jun 30/07/2012 Income Tax Form 16A/ 27D Issue of QuarterlyTDS/TCS certificate for Jun quarter. 30/07/2012 C.L.A. Form No.XXIV Half Yearly Return - Contract Labour 31/07/2012 Income Tax Return No.24Q, 26Q, 27EQ & 27Q TDS returns for Jun Quarter for Govt. deductors 31/07/2012 P.T Challan Professional Tax returns 31/07/2012 ER-I Form no. ER-I Quartely return - Employment Exchange 8
Statutory Bonus :- Who is entitled to get Bonus? can we pay this monthly or is it mandatory to yearly.. Bonus is mandatory if the Salary is not above 10000 and will be calculated on Rs. 3500 (Min 8.33 to Max 20%) But if your salary exceeds 10000 then it is on employer's will. Kindly refer below section 21 of bonus ACT about the salary and Wages means under this act. As per Bonus Act - definition of salary/wages includes following factors and not only Basic + DA, so please be aware it is not counted only on Basic and DA. "salary or wage" means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include- (I ) any other allowance which the employee is for the time being entitled to; (ii) the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles; (iii ) any travelling concession; (iv) any bonus (including incentive, production and attendance bonus); (v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the being in force; (vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him; (vii) any commission payable to the employee. Is it ok to pay bonus monthly with salary :- There is no statutory obligation to pay bonus Monthly or Yearly as per the act it is to be disbursed within eight months of the end of the financial year. That means, bonus for the financial year 2011-12 should be paid before 30th Nov 2012 Moreover, if you predetermine the bonus and pay it on a monthly basis along with monthly salary (as it is as per CTC) then it will attract ESI because any payment made other than reimbursements in an interval of not more than two months shall be treated as wages for the purpose of ESI. 9
LATEST CASE LAWS 1.Right of the employer to transfer employee from one office to another is subject to agreement entered into between them. Reference : HIGH COURT OF DELHI, W.P. (C) 6621/2005, Management of M/s. Rajasthan Patrika ltd., v/s. Jasod Singh, Order - 4th July, 2012. Brief : The respondent-workman's case was that his transfer to Jaipur was mala fide. Transfer clause not mentioned and it was not a term of his contract of employment that he could be transferred from one place to another, and he was not made aware of the same. 2.If the petitioners fails to satisfied the Court that the award is neither legally nor factually sustainable the same deserve to be dismissed. Reference : HIGH COURT OF HIMACHAL PRADESH AT SHIMLA, CWP No.4218 of 2012, order on June 11, 2012, HRTC Petitioner V/s 1. Presiding Judge Labour Court/Industrial Tribunal H.P. Shimla-171001 2. Ram Lal son of Shri Raja Ram Brief : The facts, as disclosed from the record, in a nutshell are that the petitioner was initially engaged as a helper/tyreman in the petitioner Corporation on 4.9.1997, on monthly remuneration of Rs.1500/-. He was asked to execute an agreement in the month of November, 1997, qua his engagement only for 89 days. He continued discharging his duties till 17.4.2001, when his services were terminated orally. 10