Maharashtra Lockdown 2.0

Effective from 5th April 8:00 PM onwards till 30th April 11:59 PM
-A night curfew will be imposed between 8pm and 7 am during which only essential services will be allowed to operate.

-Prohibitory orders issued under section 144 will be enforced during the daytime during the week.

– Maharashtra will be under a complete lockdown on weekends from Friday 8pm to Monday 7am.

-Theatres and multiplexes have been ordered to remain closed while film and television shootings will continue if there is no crowding, Nawab Malik said, adding, parks and playgrounds will also be closed.

– Shopping malls, bars, restaurants, small shops will be open only for take-aways and parcels

-While there are no restrictions on traveling in trains, buses, taxis, and autos, they will operate at 50% of their capacity.

-Government offices will be allowed to operate at 50% of their capacity while private offices will have to allow their employees to work from home. Essential services like banks and power supply offices will be allowed to operate.

– All Private office to remain closed

-Industries and production sector, vegetable markets will function with Standard Operating Procedures (SoPs), and construction sites will operate if there is an accommodation facility for workers.

Benefits of ESIC

Hi all

We all know that 4% of the eligible employee’s gross salary goes to ESIC but do we know the benefits?

The 5 key benefits are as

  • Medical benefit
  • Sickness benefit
  • Maternity benefit
  • Disablement benefit &
  • Dependent benefit

A few other benefits are

  • ESIC – Ayushman Bharat Convergence
  • Funeral expense
  • Atal Beemit Vyakti Kalyan Yojana
  • Vocational rehabilitation
  • Physical rehabilitation
  • Old age medical care
  • Rajiv Gandhi Shramik Kalyan Yojana

I am attaching a Presentation that informs about benefits of ESIC in simplified manner. Please do share your feedback about the article and also inform if you have any query related to ESIC.

EPF AND TAXATION

There are four points to be considered when we discuss about EPF and Taxes. Following are the cases in which your EPF money may be taxed:

  1. Premature Withdrawal – EPF Service is less than or equal to five year (FY 15-16 onwards)
  2. Employer’s Contribution to EPF for the year is above Rs 7.5 Lacs per annum (FY 19-20 Onwards)
  3. Employee’s Contribution to EPF for the year is above Rs 2.5 per annum (FY 21-22 onwards)
  4. Post-employment earnings through interest on EPF amount

Let us see each case one by one.

  1. Premature Withdrawal – EPF service is not more than five years.

This provision has come into effect from 01.06.2015. Withdrawal of Provident Fund may attract Income Tax. TDS @ 10% will be deducted from the withdrawal amount subject to monetary limit of Rs 50,000.  This rate will be applicable only after the submission of PAN card. If PAN details are not submitted than TDS @ 34.78% will deducted and the employee will not be able to claim the same in his ITR. If an eligible PF account holder submits Form 15G or 15H as the case may be, then no tax may be deducted at source.

In case of withdrawal with less than 5 years of contribution, not only the amount withdrawn becomes taxable, but the tax benefits enjoyed on PF contribution during the service are also reversed.  In such a case,

  • payment received by the individual in respect of the employer’s contribution along with the interest accrual thereon is taxed as “salary”.
  • Interest on the employee’s contribution is taxable as “other income”.
  • Payment received in respect of the employee’s own contribution is exempt from tax (to the extent not claimed as a deduction earlier)

Full exemption will be available only if

  • The employee has not completed 5 years of service due to termination of job by reason of the employee’s ill health or discontinuance of the employer’s business or for reason which is not in control of the employee.
  • If the account is transferred to the new employer then the previous service from whom the account is transferred is also considered as a service period.
  • Employer’s Contribution to EPF for the year is above Rs 7.5 Lacs per annum (FY 19-20 Onwards)

Any amount in excess of Rs. 7.50 lakh contributed by the employer to recognised provident fund accounts taken together shall be treated as perquisite in the hands of the employee  will be included in his salary and taxed at the slab rates. Even the interest accrued in respect of such excess contribution shall also be included in the value of perquisite of the employee year after year.

  • Employee’s Contribution to EPF for the year is above Rs 2.5 Lacs per annum (FY 21-22 onwards)

If the employee’s contribution to his or her EPF and VPF exceeds Rs 2.5 lakh in a year, the interest above that amount will be taxable as per employee’s income tax slab. This only takes into account the employees’ contribution and not employer’s (or the total contribution). It is not yet clear whether the interest income above the tax free level will be on accrual basis, which is every year, or at the time of withdrawal when the employee retires or withdraws PF amount.

  • Post-employment earning through interest on EPF amount

Once an individual leaves job or retires, he or she does not remain an employee; hence, any interest earned attracts tax. In Dileep Ranjekar Vs Income Tax Department the Income Tax Appellate tribunal Banglore stated that interest earned before retirement will not get taxed irrespective of when it is withdrawn after retirement, but any interest earned post retirement will be taxable in the hands of the account holder. This is because the exemption is available only to an employee. Once an individual leaves their job or retires, he or she does not remain an employee; hence, any interest earned attracts tax.

It may be noted To discourage provident fund subscribers from neglecting their EPF accounts, especially the ones in which no contributions are being made at all, in 2011 the EPFO stopped paying interest on accounts that had been inoperative for more than three years, or 36 months. But in 2016, the rule changed and the EPFO said that inoperative accounts will also earn interest till the account holder turn 58. But after the retirement of the account holder, the EPFO will not pay interest if the account becomes inoperative.

Draft Of The Occupational Safety, Health & Working condition (Madhya Pradesh) Rules, 2021

Attached is the draft of the Rules proposed by the state of Madhya Pradesh under the Code for The Occupational Safety, Health & Working condition 2020 for objection and suggestion. Objection or suggestion, if any, may be addressed to Deputy Secretary to the Government of Madhya Pradesh, Ministry of Labour Vallabh Bhavan, Bhopal or by email to dslabourmp@mp.gov.in and dihsindore@mp.gov.in.

https://drive.google.com/file/d/1XWNYOF4lb6k9kGwRJY1CD2-q8tf5T0uX/view?usp=sharing

Karnataka Minimum wages for period of 01.04.2021 to 31.03.2022

Karnataka Government has revised DA payable in schedule under Minimum wages Notification for the period of 01.04.2021 to 31.03.2022

Industry/ Category:

  1. Shop & Establishment
  2. Hotel & restaurant
  3. Security

News article of ESIC convergence with PMJAY.

Key Benefits of ESIS convergence and AB PM-JAY:

1.ESI beneficiaries will get access to healthcare providers under AB PM-JAY

2.AB PM-JAY beneficiaries will be able to avail services in ESIC empanelled hospitals.
 
3.Beneficiaries of ESIC can use their ESIS card to access free treatment at AB PM-JAY empanelled hospitals.

Link To search pm jay hospital

https://hospitals.pmjay.gov.in/Search/empnlWorkFlow.htm

Epf circular regarding member profile corrections in name /father name/ spouse name / gender

Attached is epf circular regarding member profile corrections in name /father name/ spouse name / gender. Correction have been divided into 2 classes. Minor corrections and Major corrections. Minor corrections shall be approved by APFCs / RPFC II. Major corrections shall be approved by RPFC I / RPFC II(OIC).

Maharashtra Minimum wages for period 01st Jan 2021 to 30th Jun 2021

Maharashtra Govt has revised the Minimum wages from 1.01.2021 to 30.06.2021 . Marathi Notification is uploaded here. Further we have created and uploaded the English version which has the Basic wages & Special Allowance industry and zone wise.

Note – An additional 5 % HRA  is to be added along with the Minimum wages i.e. ( Basic +Special allowance) for establishments employing 50 or more employees

Deployment of electronic facility at Employer Interface of EPFO’s Unified Portal for Principal Employers to view EPF compliances of their Contractors & contract workers.

Many employers outsource business processes of their establishment to contractors and
also engage workers in or in connection with the work of the establishment by or through
contractors and in such cases employer’s liability under EPF & MP Act, 1952 is payable by the
Principal employers. The contractors are registered independently as establishment with EPFO
and they are required to report EPF compliance in r/o workers provided to their Principal
Employers through ECRs. The UANs of the workers and the attendance / wage payment
records are verified by the Principal employers to settle the claims.

Now with deployment of aforesaid facility,

  1. EPFO registered employers engaging employees by or through contractor(s) can add
    the details of contractor(s), contract amount, tenure & UANs of contract employees at
    Employer Interface of EPFO’s Unified Portal: https://unifiedportalemp.epfindia.gov.in/epfo/
    Principal Employers not registered with EPFO can register on above Portal with Income
    Tax TAN to receive Login/password for adding details of their contractors & contract
    workers.
  2. On adding contractor’s & employees details, principal employer can view through their
    login the employee wise remittance made by contractors through ECR for any wage
    month during tenure of contract.
  3. Principal employer can view whether the employer’s share of EPF contributions (13% of
    contract worker’s wages) paid by the principal employer has been remitted by the
    contractor in r/o all contract workers or not.

circular of epfo is attached.