KERALA RELIEF FUND
DONATION AND
ITS TAX BENEFIT

 

Payroll and Compliance - The Monthly Chronicle

September 2018

 
 
**IMP**

KERALA RELIEF FUND DONATION AND ITS TAX BENEFIT

 

The donations made directly to the Kerala Chief Minister’s Fund is exempted under section 80G up to 100% of the donated amount.

Note: But if such donation is made to NGO or any other working organisation the deduction under section 80G must be checked based on the organisation’s eligibility (which may range from 50 or 100%).
For claiming such an exemption under 80G, the individual needs to provide receipt of contribution as documentary proof which would have PAN of the scheme or fund organisation, name of the scheme and the amount paid.

Note: In case such contribution is made through payroll, the HR must provide a written statement to all employees who are contributing on letter head of the company, signed and sealed by the company providing the said details, PAN of the scheme or fund organisation, name of the scheme and the amount paid.

 
 
 

ESIC Launches Toll-Free Number

In order create awareness among other members and to provide facilities to the existing users, ESIC has launched two new user-friendly initiatives.
On 10 August, ESIC launched an IVR (Interactive Voice Response)/Help Desk for ESIC Toll-Free No. 1800-11-2526 and released seven Audio-Visual clips on ESI Benefits.
These facility are aimed at educating and spreading information about ESIC benefits and will also help members with their queries and concerns.

To read more, please refer to the official link: http://pib.nic.in/newsite/PrintRelease.aspx?relid=182027
 

 
 

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The Coffee Break Guide to Compliance is a series of blog post based on recent amendments.

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Annual Report to be Submitted under Sexual Harassment Act

The Government of India has issued an official notification which mandates every company to file an annual report on compliance with the Sexual Harassment Act. The notification states that “a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013]” must be filed.

The above statement must be included in the Board’s report which the company submits annually. In case these annual reports are not submitted, there would be penal proceeding for such non-disclosure and non-compliance. This report will cast higher responsibility on the Company Directors for compliance with the Act.

To read more, please refer to the official link: http://www.mca.gov.in/Ministry/pdf/companisAccountsRules_31072018.pdf

 

 
 

Minimum Wage in Rajasthan Revised

On 12th June 2018, the Government of Rajasthan notified the revision in Minimum Wage. This is applicable to both on-roll and contractual employees. The revision is effective from 1st January 2018 (retrospectively).
 
Scheduled Employment
Effective
Unskilled
Semi-skilled
Skilled
Highly-Skilled
Monthly Daily Monthly Daily Monthly Daily Monthly Daily
Shops and Commercial
Establishments.
From 01.01.2017 5382 207 5642 217 5902 227 7202 277
From 01.01.2018 5538 213 5798 223 6058 233 7358 283


To read further, please visit: http://www.labour.rajasthan.gov.in/Notification.aspx

 
 
 

Haryana, Karnataka Governments Notify Crèche Facility Rule

On 2nd August 2018, the Haryana Government, and on 21st July the Karnataka government, published and notified rules under the Maternity Benefit (Amended) Act, 2017, for providing crèche facilities and amenities in such establishments as employ 50 or more employees in the state.

The following are the instructions to be followed for any crèche facility:

  • The crèche facility must be within walkable distance (i.e. within 500 meters) from the entrance gate of the establishment.
  • The building in which crèche is situated would be soundly constructed and all walls and roof would be of heat-resistant materials and waterproof.
  • The interior walls should be lime-washed once in six months, the wood work would be painted or varnished once every three years.
  • The crèche would have a minimum space of 6-8 sq. ft. per child to ensure that they can play, rest and learn without any hindrance.
  • The facility must include first aid and medicine kit, cradles, cot with bedding, cooking facilities, cooking utensils, utensils to feed the children, chair or sitting accommodation for use of each mother for feeding or attending to her child, toys or play materials and teaching or learning materials.

To read further about Haryana, please refer to the link: http://www.prharyana.gov.in/en/the-haryana-government-has-framed-and-notified-rules-under-the-maternity-benefit-amended-act-2017

To read further about Karnataka, please refer to the link: https://www.lexplosion.in/karnataka-government-rolls-out-draft-rules-on-creche-facilities-for-establishments-having-50-more-employees/

 
 
 

Government of Maharashtra Notifies Revision in Dearness Allowance (DA)

On 4th August 2018, the Government of Maharashtra notified the revision in Dearness Allowance (DA), effective 1st July 2018. This is applicable for Workers in Scheduled employments of Shops and Commercial Establishments.

To check the latest DA, please refer to the pdf (Click here)

 

Gujarat Provides Online Facility for Labour Compliance

The Labour Welfare Board of the State of Gujarat has enabled online registration and filing of LWF contribution.

For enabling this online feature, follow the steps listed below:

  • Log on to https://glwb.gujarat.gov.in/
  • Register your company. You need to fill in online company form and create your password.
  • Once your login is created you can use the portal to check your compliance, make online payment and check other details.

 

 
 

Professional Taxes Reduced in Madhya Pradesh

The Madhya Pradesh State Government has revised the Professional Tax Rates effective from 1 April 2018.
 

OLD RATES

Serial Number
Professional Tax-applicable Salary Range Per Month
Professional Tax Rate Per Month
1 Up to ₹ 14,999 (Up to 225,000 p.a.) Nil
2 ₹ 15,000 and above ₹ 208 (April to Feb) & (₹ 212 in March)
 

NEW RATES

Serial Number
Professional Tax-applicable Salary Range Per Month
Professional Tax Rate Per Month
1 Up to ₹ 18,749 (Up to 225,000 p.a.) Nil
2 From ₹ 18,750 to ₹ 25,000 (Between 225,001 to 300,000 p.a.) ₹ 125 (April to March) = ₹1,500 p.a.
3 From ₹ 25,001 to ₹ 33,333 (Between 300,001 to 400,000 p.a.) ₹INR 167 (April to Feb) & (₹INR 163 in March) = ₹Rs. 2,000 p.a.
4 ₹ 33,334 and above (Above 400,001 p.a.) ₹ 208 (April to Feb) & (₹ 212 in March) = ₹ 2,500 p.a.

 

 
 
 
Compliance Calendar for the month of September, 2018
Due date Nature of transaction Existing rules Mode
Professional Tax - States - Remittances
10th September 18 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan
15th September 18 Gujarat Gujarat PT regulations By Challan
20th September 18 Karnataka Karnataka PT regulations By Challan & Online
21st September 18 West Bengal West Bengal PT regulations By Challan
30th September 18 Assam & Orissa State-wise regulations By Challan
30th September 18 Maharashtra Maharashtra PT regulations Online
 
PF Central
15th September 18 Remittance of Contribution EPF & MP Act, 1952 Online
ESI Central
15th September 18 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online
TDS
7th September 18 TDS Payment for May 18 Income Tax Act, 1961 Online
Labour Welfare Fund Remittances
5th September 18 Kerala (Labour Welfare Fund Act) Kerala State Labour Welfare Fund Offline
 
 
 
 
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Sources: Government Notifications, Circulars, Press releases.

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