Compliance Calendar for Apr’17

Minimum Wages, Financial Year 2017-18 (Effective 1sᵗ April 2017)






Madhya Pradesh


Labour Law Talk-Implementation in the Near Future

Over 1 Crore Workers to be added in EPFO

The Employees’ Provident Fund Organization is likely to raise the wage ceiling for mandatory coverage under its social security schemes to Rs.25,000 a month, from Rs.15,000, bringing additional 1 Cr. formal sector workers in its net. This proposal was listed for the Employees’ Provident Fund Organization’s trustees’ meet held last 30th March, 2017.

“The proposal was deferred due to paucity of time and would be taken up at another meeting being planned for later this month”, EPFO trustee DL Sachdev said. Sachdev, who also All India Trade Union Secretary, said that over 1 crore formal sector workers would be covered additionally under the Act


An establishment covered under ESI will not be liable to pay Maternity Benefit Act since the Ministry of Labour and Employment has by a notification dated 20.1.2017 has already implemented the amended provisions of the Act.

However, the benefit of ESI will be available to those insured employees drawing upto Rs.21,000 pm and the qualifying period for claiming benefit will be not less than 70 days in the immediately preceding two consecutive periods. Thus the employers will be liable to extend Maternity Benefit Act upon the employees other than insured employees under ESI Act.

International Worker-Remittances/Settlements

The employer should be requested to make payment of contribution of retiring International Workers with in first three days of the month in which the said member is retiring, through separate ECR.

The employer should submit the claim forms in respect of such International Workers complete in all respect in the concerned PF office by 5th of the month in which such member is leaving service.

The RPFC/OIC of the concerned PF office shall ensure settlement of such retirement claims and credit the settlement amount to the member’s account on the date of leaving service in India to the bank account maintained in India.

In case the International Worker desires interest on the settlement amount for the month of retirement also, the PF Claim settlement amount be credited to the member’s account on the first day of the next month.

Necessary provision is being made in the software for processing of claim before exit from Service.

Notable Judgements


After 2 years training the workman was appointed on probation unless confirmed in writing. He was discharged from services during extended period of probation without any stigma. Workman raised an industrial dispute.

Labour Court decided the reference against the workman. Workman filed writ petition against the award passed by the Labour Court. Held, the Management is within its right to discharge the workman from his services in view of his conduct during period of probation since the main object of appointment of a person on probation is to enable the employer to assess his suitability in the establishment during the probation period and afterward.

Hence, no regular enquiry is required in such like matter since the termination is neither stigmatic nor against the conditions of employment contract. Accordingly the workman is not entitled to seek any relief. Petition stands dismissed.

Jitender Kumar vs. Presiding officer, Industrial Tribunal-cum-Labour Court, Gurgaon & Anr., 2014 LLR 985(P & H HC)

Income Tax Related Updates

The ceiling of tax rebate under section 87A has been reduced from 5000 to 2500 for individuals with taxable income up to3.5lakhs

Surcharge of 10% is implemented for annual taxable income between 50 Lakhs to 1Crore. Income above 1 Crore surcharge of 15% continues.

Section 80CCG- no deduction under this section shall be allowed from assessment year 2018-19., However, an assessee who has claimed deduction under this section for assessment year 2017-18 and earlier assessment years shall be allowed deduction under this section till the assessment year 2019-20 if he is otherwise eligible to claim the deduction as per the provisions of this section.

Section 80G – No deduction shall be allowed under this section in respect of donation of any sum exceeding two thousand rupees unless such sum is paid by any mode other than cash.

Restriction on set-off of loss from House property : – Section 71 of the Act relates to set-off of loss from one head against income from another. In line with the international best practices it is proposed to insert sub-section (3A) in the said section to provide that set-off of loss under the head “Income from house property” against any other head of income shall be restricted to two lakh rupees for any assessment year. However, the unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years in accordance with the existing provisions of the Act. This amendment will affect a number of individuals and even though carry forward would be available, there would be only accumulation of losses. Further, Section 71b provides for an outer limit of 8 assessment years.