Compliance Calendar for Feb, 2018
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but at the same time benefit of transport allowance of Rs. 19200 and medical reimbursement of Rs. 15000 are to be withdrawn.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
bonus:
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.