TalEzine February '18

Compliance Calendar for Feb, 2018

Due Date States Existing rules Mode
10th Feb '18 Andhra Pradesh,Telangana & Madhya Pradesh State-wise regulations By Challan
15th Feb '18 Gujarat Gujarat PT regulations By Challan
20th Feb '18 Karnataka Karnataka PT regulations By Challan & online
15th Feb '18 West Bengal West Bengal PT regulations By Challan
28th Feb '18 Assam & Orissa State-wise regulations By Challan
28st Feb '18 Maharashtra Maharashtra PT regulations Online
PF Central
15th Feb '18 Remittance of Contribution Epf & MP Act, 1952 Online
ESI Central
15th Feb '18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
7th Feb '18 TDS Payment Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th Feb '18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Online

Union Budget 2018-19 Highlights

Proposed Amendments

  • Income Tax slab rates ,rebate under section 87A and Surcharge have remained unchanged for all classes of individuals.

  • The standard deduction of Rs. 40000 is proposed for salaried employees but at the same time benefit of transport allowance of Rs. 19200 and medical reimbursement of Rs. 15000 are to be withdrawn.

  • Education Cess and Secondary & Higher Education Cess are to be removed. A new cess by the name of “Health & Education Cess” are to be levied @ 4% of income tax including surcharge wherever applicable.

  • Senior citizens can claim benefit of reduction Rs 50,000 per year with reference to any general health insurance premium under 80D.

  • Section 80DDB : w.e.f 1st April 2018, the limit of Rs. 60000 are to be increased by Rs. 100000 for senior citizens as well as super senior citizens.

  • No changes in Income Tax slab and Surcharge calculation compare to last Financial year 2017-18.

12% of employees' contribution to EPF fund for new jobs

Government will pay the 12 per cent of wages to the Employees Provident Fund (EPF) contribution on behalf of new employees in all sections for the next three years. The decision was announced by Finance Minister during his Union Budget presentation.

Govt to reduce women employees’ contribution to the EPF to 8%

Mr. Jaitley said the Employees Provident Fund Act will be amended to reduce contribution of women to 8 % from 12 % with no change in employer’s contribution. This would effectively mean women employees will be able to get ahigher take-home pay.

Increased Hiring and Employee Salaries in 2018

A survey from Mercer’s 2017 India says, companies are likely to dispense 10% salary increase across industries in 2018. The survey of 791 organizations across industry sectors found that 55% companies intend to hire in the next 12 months. It was 48% last year.

Government to Provide PAN India License to Contract workers

The Ministry of Labour & Employment is planning to launch a national license for staffing firms supplying contact workers across industries, a move that seeks to make doing business easier for them. Staffing firms typically operate from multiple locations, so a national license will help increase formalization of work force.

The license will be based on a set criteria and renewed every 3 years. It can be obtained on payment of fees and a bank guarantee as security for due performance of their obligations. At present, Staffing firms are requiredto make a small deposit as security to the govt. They are required to seek approvals for hiring contract workers at every location or premises and for every new person hired.

PM Modi urges youth to become job creators

On the occasion of the inauguration of 22nd National Youth Festival in Gautam Buddha University, Noida, Prime Minister urged the youth to go for entrepreneurship, PM Narendra Modi said the youth of today should become job creators and think out of box for which the government is willing to hand-hold them for setting up start-ups. Modi said while patience was a virtue, it should not stop the youth from coming up with innovative ideas for the benefit of country and society.

Interest on delayed payment of

There is no such provision of interest on delayed payment of bonus under the Payment of Bonus Act but it does not mean that no interest can be claimed by the employees when the bonus is not paid within the prescribed period. For instance, in the case, the bonus was not paid to the employees for 11 years. The industrial tribunal was granted interest on bonus to the workers from due date and the Madras High Court has also confirmed the same.

No need to upload scanned copy of PAN Card during EPF Registration

At the time of registration of an establishment, employer has to upload digitally signed copy of PAN card. There is a mandate of Ease of Doing business to eliminate the requirement of submitting scanned copy of PAN card at the time of registration.

In this regard, it is informed that the requirement of uploading the scanned copy of PAN card at the time of registration of establishment has been examined and online system has been put in place for verifying details of PAN directly from the Income Tax Department. Hence, it has been decided by the competent authority that there is no need to upload the scanned copy of PAN card at the time of registration of establishments.

Important Judgments

Termination of probationer before confirmation after expiry of probation period
Case: An employee who was appointed on probation and was not confirmed. He continued his services after probation period. When the employer terminated his services, the employee challenged the termination.
Resolution: An employer is within its right to terminate the services of a probationer during probation or a fixed extended period. In this context with regard to your query, the reference is made to a judgment of the supreme court of India wherein it has been held that mere that an employee is allowed to continue in the post even after expiry of the period of probation, there will not be any deemed confirmation in the absence of express order of confirmation.
Ref : Head Master, Lawrence School, Lovedale vs. Jayanthi Raghu & Anr., 2012 LLR 514 (SC)
An Employee cannot be prohibited to accept job with the competitor after separation of his employment with his previous employer
Case: There was an agreement between employer and employee, containing terms and conditions to prohibit the employee after cessation of his employment he will not join any other similar concern for a period of 2 years after separation. The employee joined another company of one of the customers of his previous employer. The employer filed a suit for permanent injunction against the employee praying for restraining the employee from joining his customer along with an application seeking an injunction against the employee.
Resolution: The court held that an agreement with an employee that he will not take up employment with any prospective employer, after cessation of his employment, will not be enforceable by his employer and no injunction order restraining the employee to join another employer can be granted by the court except that such an employer can claim damages in accordance with law. Such an agreement is violation of public policy and cannot be enforced in the law court.
Ref : Ambiance India Pvt. Ltd(M/S) vs. Shri Naveen Jain, 2015 LLR 837 (Del. HC)

Minimum Wages Updates

State Class ZONE I (INR) ZONE II (INR) ZONE III (INR) ZONE IV (INR) With Effect From
Karnataka Highly Skilled 15790.6 15053.15 14356.68 13690.51 30-Dec-17
Skilled 14388.47 13720.79 13084.91 12479.3 30-Dec-17
Semi-Skilled 13113.81 12506.83 11928.75 11378.2 30-Dec-17
Unskilled 11955.03 11403.23 10877.7 10377.2 30-Dec-17
Kerala Highly Skilled 11688       1-Nov-17
Skilled 11268       1-Nov-17
Semi-Skilled 11058       1-Nov-17
Unskilled 10848       1-Nov-17
West Bengal Highly Skilled 10197 9213     1-Jan-18
Skilled 9270 8375     1-Jan-18
Semi-Skilled 8427 7613     1-Jan-18
Unskilled 7661 6922     1-Jan-18
Rajasthan Highly Skilled 7358       1-Jan-18
Skilled 6058       1-Jan-18
Semi-Skilled 5798       1-Jan-18
Unskilled 5738       1-Jan-18