Payroll and Compliance - The Monthly Chronicle

May 2018

 
 

ADPs’ Webinar Update on Budget Changes for FY 2018-19

There are many changes and updates which were applicable to individual income and payroll processing from 1st April 2018. ADP had taken up a webinar on this topic.
 

This webinar answers all question on:

  • Standard deduction and CTC changes
  • Gratuity threshold limit increase
  • Other budget changes

 

Also, ADP has collated all the frequently asked questions received on the topic here https://www.blog.adp.in/budget-changes-2018-19-impact-payroll-webinar-faqs/.

 

 
 

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Amendment in Pradan Mantri Rojgar Protsahan Yojana (PMRPY)

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme was introduced in 2017 to incentivize employers for generation of new employment, where Government of India will be paying the 8.33% EPS contribution of the employer for the new employees. This scheme has a dual benefit, where, on the one hand, the employer is incentivized for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments.

Now, PMRPY scheme has been extended for another year (until 2018-19). Under this scheme, for employees who are enrolling for the first time in Employee Provident Fund Organization (EPFO), the employer's contribution of 12% (EPF of 3.67% and EPS of 8.33%), subject to maximum wage of Rs. 15,000/- per month, will be paid by the Government of India for the first three years of employment. The terminal date for registration of beneficiary through establishment is 31 March 2019.

The above scheme is effective from April 2018. Please read the official notification for further details.

 
 

Professional Tax Amendment Under Punjab State Development Tax

The Government of Punjab State has introduced a new Professional Tax called the Punjab State Development Tax Act, 2018, effective from 19 April 2018.

 

 

S. No Class of persons Rate
1 All such persons who are assessable under the Head Income from Salaries and / or Wages as per the Income Tax Act, 1961. INR 200 per month
2 All Such persons who are assessable under the Head Income from Business and/ or Profession as per the Income Tax Act, 1961. INR 200 per month

 

 

 

 

Note: Senior Citizens (60 years and above) are exempted from paying the state Development Tax in Punjab.

To read more please refer to the notification: https://bit.ly/2I16cpz

 

 

 
 

Addition of Offline Procedure for Provident Fund (PF) Claim

Earlier this year, the Provident Fund department had ruled that all claims over Rs. 10 lakh can only be made online. But there were many issues faced by subscribers who were having problems submitting claims online. In light of these difficulties and subscriber hardship, the PF department has relaxed the rules. From this month onwards, subscribers can file their claim through online as well as offline channels.

Read the amended instructions for further details.

 
 

Income Tax Return Filing: Changes & Amendments

Individual Income Tax return due date filing for FY 2017-18 is 31 July 2018. The updated forms are released and we all can start filing the points. But before filing, let me us go through the many changes which have happened in the form for the year.

There are over 25 changes in the Income Tax Return (ITR) forms this year across all the forms meant for individuals, businesses and other assesses. But we will only talk about the details and changes made in ITR 1.


A few important changes made in ITR are as below:

  • The new ITR-1 Sahaj form would seeks details about income from property such as gross rent received/ receivable/ let out value and tax paid to local authorities, etc.
  • An individual has to provide details of break-up of salary in the return.
  • A new field has been introduced to disclose the TDS paid on rent payment. The Individual now can claim credit of any TDS paid.
  • The new ITR forms have specific columns to report each capital gain exemption separately. Details of each capital gains exemption under Sections 54, 54B, 54EC, 54EE, 54F, 54GB and 115F are to be reported in their applicable column(s) now. A taxpayer who has earned capital gains exemptions has to mention the date of transfer of original capital asset, which was missing in earlier ITR forms.
  • The other details, viz., Aadhaar linking with the ITR and penalty on delayed filing, remain the same.

The details of the new ITR-1 can be found here https://www.incometaxindia.gov.in/forms/income-tax rules/2018/itr1_english.pdf.

 

 
 
 
Compliance Calendar for the month of May, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th May 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th May 18 Gujarat Gujarat PT regulations By Challan
20th May 18 Karnataka Karnataka PT regulations By Challan & Online
21st May 18 West Bengal West Bengal PT regulations By Challan
31st May 18 Assam & Orissa State-wise regulations By Challan
31st May 18 Maharashtra Maharashtra PT regulations Online
 
PF Central
15th May 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th May 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
TDS
7th May 18 TDS Payment for April 18 Income Tax Act, 1961 Online
31st May 18 TDS Retun Filing for Q4 of FY 2017-18 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th May 18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
 
 
 
 
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Sources: Government Notifications, Circulars, Press releases.

Disclaimer

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.

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