Compliance Calendar for May, 2018
Standard deduction allowed on pension from former employer
The Centre has clarified that taxpayers who receive a pension from their former employer are entitled to standard deduction benefit announced in this year’s budget.
They can claim a deduction of Rs 40,000 or the amount of pension, whichever is less, as a deduction, an official release said. This facility of standard deduction is available as the pension received by a taxpayer from his former employer is taxable under the head “salaries”, the release added.
Online modes in case of the settlement amount is above Rs.10.00 lacs – Revised instructions
The EPFO, in February 2018, had made it compulsory to file online claims for provident fund withdrawals above Rs 10 lakh. Similarly, it also made mandatory to file online claims for withdrawals of Rs 5 lakh under the Employees’ Pension Scheme (EPS).
Reversing its earlier decision, the Employees Provident Fund Organization (EPFO) has decided to accept PF withdrawal claims above Rs 10 lakh submitted offline via physical forms. Hence the Claims above Rs 10 lakh don’t have to be filed online.
Retirement fund body EPFO or Employees’ Provident Fund Organization has recently revised some of its rules related to provident fund claims, considering the grievances raised by members, this stipulation will be kept in abeyance so that offline claims will also be accepted in all cases.
Pradhan Mantri Rojgar Protsahan Yojana- GOI will pay the full employer’s contribution 12%
The EPFO has intimated an amendment to the guidelines of Pradhan Mantri Rojgar Protsahan Yojana. As per the amendment to the guidelines, the Government of India will pay the full employer’s contribution 12% (EPF & EPS both) w.e.f. 1st April 2018 for a period of three years to the new employees and to the existing beneficiaries for their remaining period of three years through EPFO. The last date of registration of the beneficiary through establishment is 31st March 2019.
Election to Karnataka Assembly – Declaration of paid holiday on Polling Day
Election to State Legislature Assembly is scheduled to be held on 12.5.2018 which falls on Second Saturday. Every person employed in any business trade, industrial and taking or any other establishments and entitled to vote at an election to the house of the people or Legislative Assembly of the State shall on the day of polling be granted a holiday. There shall be no deduction or abatement of wages of any such persons on account of holiday granted for polling day. Contravention of this statutory provision shall be punishable with fine which may be extended to Rs.500/-. This statutory provision will not apply to any elector whose absence may cause any danger or substantial loss in respect of the employment in which he is engaged.
The Parliamentary panel finalises the report on Wage Code Bill
Labour Minister Santosh Gangwar today said a parliamentary standing committee has finalized its report on first labour code, Wage Code Bill 2017, and the legislation would be pushed for passage in the monsoon session of Parliament after the document is submitted.
The law will enable the central government to set benchmark minimum wages for different regions across the country. The bill’s provision provides that states cannot set minimum wages below the benchmark set by the Centre.
Minimum debt investment of EPF funds reduced
The Government has reduced the minimum investment floor mandated for debt securities and term deposits of banks to 20% from the existing 35%. This means that EPFO now has greater flexibility in investing your EPF in debt.This move may be aimed at allowing EPFO to reduce exposure to risky corporate debt when investing your EPF money. The circular making this change was issued on February 23.