Payroll and Compliance - The Monthly Chronicle

April 2018

Finance Bill 2018 Passed by Parliament, Receives President’s Assent

The Union Budget was proposed in India on 1 February 2018 with all 21 amendments in different fields, including Income Tax impacting of an individual. The same Budget was passed in Lok Sabha and Rajya Sabha without any protest.

On 29 March 2018, the Finance Bill got the President’s assent and now is the new Finance Act of 2018. All the proposed amendment are now applicable from 1 April 2018.

The list of amendments in the Finance Bill impacting individual income and salary structure were published in ADP’s February newsletter. Read more here.

Here is the government official gazette for the Finance Bill 2018 for your reference and review.

We are conducting a webinar on Budget Changes 2018-19 and Impact on Payroll. If you are interested in attending, please register here.

Gratuity Limit Increased to Rs. 20 Lakh for Private Sector Employees

The Parliament, on 22 March 2018, passed the Payment of Gratuity (Amendment) Bill. This Bill will enable the department to increase the ceiling of tax-free gratuity amount to Rs. 20 lakh (earlier the limit was Rs. 10 lakh.) for private company employees, as well. This Amendment aims to provide greater defined benefit for private sector employees, and will bring the advantage of such employees at par with their public sector counterparts as far as the gratuity ceiling is concerned.

On 29 March 2018, the President signed off on the Gratuity (Amendment) Bill, enhancing the maximum threshold limit for tax exemption on gratuity payment up to Rs. 20 Lac for all private sector employees from 1 April 2018.

Here is the government official gazette for the Gratuity (Amendment) Act 2018 for your reference and review.

EPFO to Open ‘MAY I HELP YOU’ Counters

The Employee Provident Fund Organisation (EPFO), in line with the proposed campaign for going paper-free by August 2018, will focus, in March and April, on verifying Aadhaar for members, so that all claims are received online. In this regard, the department has decided to put up separate ‘MAY I HELP YOU’ counters in all the field offices that will educate, facilitate and guide the stakeholders about verification, online linking and the filing of online claims. Read more at this link.

EPFO Initiative for Easy Linking of UAN and Aadhaar

For new joiners, Aadhaar linking has been easier since fresh Form 11s with proper details were collected and then Aadhaar was linked with UAN. But for those employees whose UAN was created by EPFO, KYC details such as Aadhaar, PAN and bank have still not been updated. Pending the Supreme Court verdict, Aadhaar is mandatory now, but there have been many challenges in linking Aadhaar and UAN because of name mismatch.

To help members register and link their Aadhaar details, EPFO has come out with new initiative to seed Aadhaar using UAN, gender of member.

Follow the process below to link Aadhaar and UAN:

  1. Go to
  2. Under Online Services, click e-KYC Portal
  3. A new window will open. Select option Link UAN AADHAAR
  4. Type your UAN and your mobile number and Get OTP
  5. Type OTP, Gender, Aadhaar number and click SUBMIT

Note: If your Aadhaar is already linked, you will get a message that your Aadhaar is already verified.

New Method to Link UAN and Aadhaar (UMANG App)

EPFO has introduced a UAN-Aadhaar linking facility for the convenience of members using EPFO link in the Umang mobile app. The facility on e-KYC Portal under Umang app has further added a new feature to link UAN with Aadhaar online using biometric credentials or OTP facilities.

Steps to use Umang app to link UAN with Aadhaar:

  1. For using this facility with the Umang app, the member will have to provide his/her UAN.
  2. An OTP will be sent to the UAN-registered mobile number.
  3. After OTP verification, member will have to provide Aadhaar details and gender information (where gender information is not available against UAN). Another OTP will be sent on Aadhaar-registered mobile number and/or email.
  4. After OTP verification, Aadhaar will be linked with UAN where UAN and Aadhaar details are matched.


Supreme Court Order: Aadhaar Not Necessary for Bank Accounts and Phones for NOW

The Supreme Court order has clarified that the biometric ID is mandatory for accessing social welfare schemes and subsidies.

The Supreme Court is yet to decide whether the government's demand for Aadhaar to be linked to private and public services is a violation of the right to privacy or not. Only then will the final verdict be provided on the same. As of now, the 12-digit unique number given to each citizen does not have to be linked to services other than government services.

Compliance Calendar for the month of April, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th April 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th April 18 Gujarat Gujarat PT regulations By Challan
20th April 18 Karnataka Karnataka PT regulations By Challan & Online
21st April 18 West Bengal West Bengal PT regulations By Challan
30th April 18 Assam & Orissa State-wise regulations By Challan
30th April 18 Maharashtra Maharashtra PT regulations Online
PF Central
15th April 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th April 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
30th April 18 TDS Payment Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th April 18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline

69   Years of experience     117   Countries  

750,000   Global clients     49 million   Active users on the cloud  

Sources: Government Notifications, Circulars, Press releases.


The information provided herein is general and not intended as legal, regulatory, tax or accounting advice and you should obtain your own independent advice regarding the matters dealt with herein. ADP assumes no liability or responsibility for any errors or omissions in the content of this document or publication and for your use of any information provided. The information contained in this document is provided “as is” without warranty of any kind, either express or implied, including without warranties of merchantability or fitness for a particular purpose, and non-infringement. All materials contained in this are protected by copyright laws, and may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of ADP. ADP’s names and logos and all related trademarks and other intellectual property are the property of ADP and cannot be used without its express prior written permission.


This Newsletter is not for commercial or solicitation purposes