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While the deadline for Provident Fund (PF) remittance by employers is the 15th of the following month, the PF department allowed an additional 5 days as grace period until now. Given that the PF remittance was done primarily by way of cheque payment at designated branches of the State Bank of India in the past, the […]
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Leave a Comment (0) →The Government of India has notified the Payment of Bonus (Amendment) Act, 2015, by way of a notification dated 01-Jan-2016. The notification impacts the Payment of Bonus Act, 1965, and mandates the following changes with regard to statutory bonus calculation. 1. Bonus eligibility: Until now, employees who are employed on a salary exceeding Rs 10,000 per […]
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Leave a Comment (0) →Section 10 (13A) of the Income Tax Act along with Rule 2A of the Income Tax Rules provides for income tax exemption on House Rent Allowance (HRA) paid to employees. While HRA is one of the most widely used head of pay in Indian organizations, we find many payroll managers not calculating the exemption on […]
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Leave a Comment (0) →As a payroll service provider, we verify the supporting documents submitted by employees when they seek tax benefit. If an employee seeks deduction under Section 24 of the Income Tax Act, for the housing loan interest, we typically seek a certificate from the bank/financial institution which presents the loan principal and interest schedule for the year, […]
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Leave a Comment (17) →The Income Tax Department notified a new format, comprising Part A and Part B, for Form 16 in 2013. As you would be aware, Part A comes from the TRACES site while Part B is created by the employer. There are salary and tax details in both Part A and Part B. Even after 2 […]
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Leave a Comment (125) →Let us face it: payroll management is a thankless job. When was the last time you thanked payroll folks in your organization for crediting your salary on time or calculating your income tax or provident fund deduction accurately? Running a payroll organization is like running an electric utility. No consumer thanks the power company when […]
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Leave a Comment (2) →Compensation structuring with a view to minimizing tax in the hands of employees is not a bad thing. However, we find a number of organizations not adhering to the Income Tax Act while including allowances and reimbursements in their employees’ salary structure. A typical practice adopted by many organizations is to define a portion of […]
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Leave a Comment (0) →Recently, we received a question from an organization known to us. Should we be calculating Service Tax on notice period recovery when we run final settlement for resigned employees? In case you are wondering how on earth there can be any service tax implication on payroll processing, let us examine the background to this question. […]
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Leave a Comment (5) →Recently, we received a question from an HR manager, “Do we pay salary for the total number of calendar days in a month or only for the working days, after deducting the number of Sundays and other holidays in a month?” Of course, organizations pay the same salary each month to an employee who works […]
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Leave a Comment (35) →Effective April 2015, the state authorities in Karnataka and Maharashtra have introduced amendments to Profession Tax. Karnataka 1. Profession Tax exemption to senior citizens who have attained age of 60 years. 2. Profession Tax exemption to persons drawing salary/wages less than Rs. 15,000 in a month. Source: http://ctax.kar.nic.in/latestupdates/ctd0001.pdf (Please refer to III PROFESSION TAX) Maharashtra […]
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