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Payroll

80EEB – New Tax Exemption on Loan for Purchase of Electric Vehicles

1. Features of Section 80EEB

a) Eligibility criteria

The deduction under this section is available only to individuals. This deduction is not available to any other taxpayer. Thus, if you are a HUF, AOP, Partnership firm, a company, or any other kind of taxpayer, you cannot claim any benefit under this section.

b) Amount of deduction

A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEB. An individual taxpayer may have an electric vehicle for personal use or for business use. This deduction would facilitate individuals having an electric vehicle for personal use to claim the interest paid on the vehicle loan.

In case of business use, an individual can also claim the deduction up to Rs 1,50,000 under section 80EEB. Any interest payments above Rs 1,50,000 can be claimed as a business expense. To claim as a business expense, it is necessary that the vehicle should be registered in the name of the owner or the business enterprise.

Do note that an individual taxpayer should obtain the interest paid certificate and keep the necessary documents such as tax invoice and loan documents handy at the time of filing of the return.

2. Conditions for claiming the deduction

The loan must be taken from a financial institution or a non-banking financial company for buying an electric vehicle.The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.“Electric vehicle” has been defined to mean a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy.

3. Promotion of electric vehicle mobility solution

The union cabinet has approved Phase-II of FAME scheme for promotion of electric mobility in the country. The FAME (Faster Adoption and Manufacturing of Electric Vehicles) is an incentive scheme of the government of India for the promotion of electric and hybrid vehicles in the country. The ultimate objective of the scheme is to promote electric mobility and the scheme offers financial incentives for the purchase of electric vehicles and the creation of electric transportation and charging infrastructure. Under the scheme, the incentives are available for 3 Wheelers, 4 Wheelers and electric 2 wheelers.

The Phase-II of the scheme has started from 1 April 2019 and will be completed by 31 March 2022. The Phase-II is an expanded version of the first phase. FAME India Phase II has a total outlay of Rs 10000 Crores over a period of 3 years from 1 April 2019 to 31 March 2022.

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Payroll Pedia

Categories
Payroll

Section 80EEA – Deduction for interest paid on home loan for affordable housing

Eligibility

Deductions under Section 80EEA of the Income Tax Act will only be applicable to an individual.

Deduction Amount

Section 80EEA of the Income Tax Act offers a deduction for interest payments up to INR 1.5 Lakhs. This deduction is over and above the deduction of INR 2 Lakhs offered for interest payments through Section 24 of the Income Tax Act. Therefore, if a taxpayer meets all the necessary conditions, they can avail a total deduction of INR 3.5 Lakhs for interest on a home loan taken to buy an affordable home.

Conditions to Claim Deductions

Section 80EEA is introduced to extend the benefits offered under Section 80EE in terms of low-cost housing. The following conditions have to be fulfiled in order to claim deductions up to INR 1.5 Lakhs under Section 80EEA of the Income Tax Act.

  • The home loan must be taken from a Financial Institution or a Housing Finance Company.
    • It should be noted that the term Financial Institution refers to a banking company to which the Banking Regulations Act of 1949 is applicable. It may also refer to a banking institution that is referred to in Section 51 of the Act or a housing finance company. The term housing finance company refers to a public company formed and registered in India with its main object as carrying on a business of providing long-term finances for the construction or purchase of houses in the country for residential purposes.
  • The stamp duty value of a house property under this Section cannot cross the threshold of INR 45 Lakhs.
  • The concerned individual taxpayer should not be eligible to claim any deductions under the existing Section 80EE of the Income Tax Act.
  • A maximum amount of INR 1.5 Lakhs will only be permissible as a deduction for AY 2020-21 and subsequent assessment years.
  • A deduction that is claimed under Section 80EEA will not be allowed under any other provision of the Income Tax Act for the same year or any other assessment years.
  • The concerned taxpayer must be a first-time homebuyer. It is essential to note that the taxpayer should not own any other residential house properties on the date of sanctioning the home loan.
  • The carpet area of a particular house property must not exceed 60 Sq. Mt. or 645 Sq. Ft. in metropolitan cities such as the following:
    • Bengaluru
    • Chennai
    • Delhi National Capital Region (however, it is limited to Delhi, Noida, Greater Noida, Gurgaon, Ghaziabad, Faridabad)
    • Hyderabad
    • Kolkata
    • Mumbai (the whole of Mumbai Metropolitan Region)
  • The carpet area of a particular house property must not exceed 90 Sq. Mt. or 968 Sq. Ft. in any other city or town.
  • Deductions under Section 80EEA will be applicable to affordable real estate projects that are sanctioned after the 1st of April, 2019 but before the 31st of March, 2020.

Section 80EEA mandates the acquisition of a residential house. However, it does not cover the construction of a residential house. One of the main conditions of the Section is that the assessee should not own any residential house properties on the date of sanctioning the home loan. However, if the taxpayer owns a residential property after the loan for affordable housing was sanctioned, the taxpayer is not to be disqualified. Therefore, if an assessee is fortunate enough to own yet another property after the sanction of the loan, the conditions of the Section stands satisfied.

Section 24 and Section 80EEA

Homeowners may claim a deduction for interest payments up to INR 2 Lakhs on their home loan under Section 24 of the Income Tax Act if the owner or their family resides in the said house property. The deduction up to INR 2 Lakhs is applicable even when the house property is vacant. If the taxpayer chooses to rent out the property, the entire home loan interest is allowed as a deduction.

If a taxpayer is capable of satisfying the necessary conditions of Section 24 as well as Section 80EEA of the Income Tax Act, then they may claim the benefits of deductions under both the sections.

Team

Payroll Pedia

Categories
Code on Wages Payroll

THE CODE ON WAGES – 2019

The Code on Wages, 2019 was introduced in Lok Sabha by the Minister of Labour, Mr. Santosh Gangwar on July 23, 2019.

The Code on Wages 2019 subsumes relevant provisions of below mentioned Act’s. After the enactment of the Code on Wages, all these four below mentioned Acts stands repealed.

  1. The Minimum Wages Act, 1948,
  2. The Payment of Wages Act, 1936,
  3. The Payment of Bonus Act, 1965 and
  4. The Equal Remuneration Act, 1976

Wage definition under Wage Code Bill:‐ “Wages” means all remuneration whether by way of salaries,
allowances or otherwise expressed in terms of money or capable of being so expressed which would, if
the terms of employment. express or implied, were fulfilled, be payable to a person employed in respect
of this employment or of work done in such employment, and includes:

  • Basic Pay
  • Dearness allowance and
  • Retaining allowance, if any
    But does not include‐
  • Any bonus
  • The value of any house‐accommodation
  • Any contribution paid by the employer to any pension or provident fund.
  • House rent allowance
  • Any overtime allowance
  • Any gratuity payable on the termination of employment.
  • Any commission payable
    Coverage:‐
    The code will apply to all employees.
    Below mentioned features are introduced in under this:
    – Universalization of provisions of minimum wages and timely payment of wages to all employees
    irrespective of the sector and wage ceiling. At present, the provisions of both the Minimum Wages Act and Payment of Wages Act apply on workers below a particular wage ceiling working in Scheduled Employments only.

– Different definitions of wages under various acts have been simplified and is expected to reduce litigation.
– Number of registers, returns, forms etc., not only can be electronically filed and maintained, but it is
envisaged that through rules, not more than one template will be prescribed.
– Many changes have been introduced in the inspection regimes including web based randomised computerised inspection scheme, jurisdiction‐free inspections, calling of information electronically for inspection, composition of fines etc. All these changes will be conducive for enforcement of labour laws with transparency and accountability.
– The limitation period has been raised to 3 years and made uniform for filing claims for minimum wages, bonus, equal remuneration etc., as against existing varying period between 6 months to 2years.
– The Central Government shall fix floor wage taking into account minimum living standards of a worker in such manner as may be prescribed provided that different floor wage may be fixed for
different geographical areas.
– The minimum rates of wages fixed by the appropriate Government shall not be less than the floor wage and if the minimum rates of wages fixed by the appropriate Government earlier is more than the floor wage, then, the appropriate Governments shall not reduce such minimum rates of wages
fixed by it earlier.
– Appropriate Government may, by notification, specify the industrial or other establishment, payment of wages only by cheque or by crediting the wages in his bank account.
– The employer shall fix the wage period for employees either as daily or weekly or fortnightly or monthly subject to the condition that no wage period in respect of any employee shall be more than a month provided that different wage periods may be fixed for different establishments.

– The wages payable shall be paid within two working days of his removal, dismissal, retrenchment or,as the case may be, his resignation. Appropriate Government may, provide any other time limit for
payment of wages where it considers reasonable having regard to the circumstances under which the wages are to be paid.
– Every employee, drawing wages not exceeding such amount per mensem, as determined by notification, by the appropriate Government, by his employer, who has put in at least thirty days work in an accounting year, an annual minimum bonus calculated at the rate of eight and one‐third per cent. of the wages earned by the employee or one hundred rupees, whichever is higher whether or not the employer has any allocable surplus during the previous accounting year.
– Maximum bonus @ twenty per cent. of such wages.
– An employer who has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code
in respect of that accounting year and the employee shall be entitled to receive only the balance.
– All amounts payable to an employee by way of bonus under this Code shall be paid by crediting it in the bank account of the employee by his employer within a period of eight months from the close of the accounting year.


Inspection‐:
 The appropriate Government may, by notification, appoint Inspector‐cum‐ Facilitators for the purposes of this Code
 Inspection scheme which may also provide for generation of a web‐based inspection and calling of information relating to the inspection under this Code electronically.
 Jurisdiction of randomised selection of inspection for the purposes of this Code to the Inspector‐cum‐ Facilitator.

Penalties:‐
– Any employer who pays to any employee less than the amount due to such employee under the provisions of this Code shall be punishable with fine which may extend to fifty thousand rupees;
– On the second and the subsequent commission of the offence, be punishable with imprisonment for a term which may extend to three months or with fine which may extend to one lakh rupees, or with
both;
– Contravenes any other provision of this Code or any rule made or order made or issued there under shall be punishable with fine which may extend to twenty thousand rupees; found guilty of similar offence (contravenes any other provision of this Code or any rule made or order made or issued there under), within five years from the date of the commission of the first or subsequent offence than on the second and the subsequent commission will be punishable with imprisonment for a term
which may extend to one month or with fine which may extend to forty thousand rupees, or with both.

http://egazette.nic.in/WriteReadData/2019/210356.pdf

Regards,

Team PayrollPedia

Categories
Payroll

Revised Minimum Wages Himachal Pradesh

The Minimum wages in Himachal Pradesh has been revised with effect from 01st April 2019.The amended rates for all the categories are as below:-

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HP SHOPS AND COMMERCIAL ESTABLISHMENTS 
S.NO Category Minimum wages w.e.f 01.04.2018     Minimum wages w.e.f 01.04.2019
           
    Per Day Monthly Per Day Monthly
1 Unskilled 225/- 6750/- Rs. 250.00/- Rs. 7500/-
2 Semi skilled 240.55/- 7217/- Rs. 265.55/- Rs. 7967/-
3 Skilled 269.17/- 8075/- Rs. 294.17/- Rs. 8825/-
4 Highly Skilled 282.12/- 8464/- Rs. 307.12/- Rs. 9214/-

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Categories
Payroll Professional Tax (P.Tax)

Due Date Change Of Employer Professional Tax In Case Maharashtra State

Government of Maharashtra vide notification no MAHARASHTRA ACT No. XIV OF 2019 has amended Section 5,8,9 of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. As per the amendment the penalty clauses have been changed with respect to registration or enrollment, failure to deduct or payment of tax. The amendment has also revised the due date for payment of tax by enrolled person to 31st March of the year in which the rates are revised.

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Effective Date: 9th Jul, 2019

Payment

Old due date of Payment

New Due date of Payment

As per new Amendment (09-07-2019)

Employer P.Tax Amount

Employer P.Tax Payment

30th June every year

31st March every year

Rs. 2500/- per year

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Categories
Payroll

Government Of Telangana Has Given Permission/Exemption To All Information Technology Enabled Services (ITES)

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The Government of Telangana has given permission/exemption to all Information Technology Enabled Services (ITES) and Information Technology Establishments from the provisions of sections 15,16,21,23 & 31 of the Telangana Shops & Establishments Act,1988 for a period of 05 years w.e.f 30.05.2018 subject to the following conditions.

  1. Working hours of the employees 48 hours in a week. Beyond 48 hours the employee is entitled for Overtime.
  2. Every employee shall be given a Weekly holiday.
  3. Management is permitted to hire young person & women employee during night shift provided proper security & transport facility is provided.
  4. Every employee is provided Identity cards & other welfare measure.
  5. Every employee shall be given compensatory holiday with wages under sub section (2) of section 31 of Telangana Shops & Establishment Act,1988
  6. Companies should obtain Bio-data of each driver & also collect details such as photographs, address & telephone no. /Mobile No. etc.
  7. Schedule of pick & drop is to be decided by the supervisory office of the company on every Monday.
  8. Mobile no. & address of women employee shall not be disclosed to unauthorized person.
  9. Selection of route should be done carefully and women employee should not be picked first & dropped last.
  10. Company will provide security guards and vehicles with GPRS facilities in night shift.
  11. Designated supervisors of the company shall randomly check the vehicles for all routes.
  12. Companies will have control room & travel desk for monitoring the vehicle movements.
  13. The exemption granted in these orders may be revoked at any time without any prior notice.
  14. Security should be provided to women employees before 6 am & after 8 pm for pick and drop offs.
  15. Maintenance of various statutory registers in soft copy is regarded as sufficient compliance.
  16. If any above conditions are violated, exemption orders issued to the company shall be revoked by the Government.

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Categories
Payroll

Latest Bonus Calculation in Excel

How to calculate bonus? this is general question by every one ether bonus payment team like, HR or payroll & finance or an employee.

Bonus is payment as per The Payment of bonus act 1965.

Every employee those monthly basic +DA is less than or equal to 21000, is eligible for bonus payment. Bonus payment is statutory compliance.

Bonus Payment last date is : 30 November

Maximum bonus : 20%

Minimum Bonus : 8.33%

How to Calculate Bonus:

First Step : minimum wages and 7000 which ever is higher.

Second Step: First Step and monthly Basic salary which is less.

We need to calculate bonus 8.33% OR 20% on Second Step.

Bonus return form : A,B,C,D

Thanks,

@IPTMNOIDA

Categories
Payroll

Latest Surcharge and Marginal Tax as per New Budget

Enclosed here latest tax calculation in Excel sheet along with latest Surcharge rates. Download excel sheet and understood excel formulas.

Watch Video to understood complete TDS Tax on Salary.

Surcharge and Marginal Tax (Below 60)

Taxable Income FromTaxable Income UptoSurcharge / Marginal Tax
050000000
50000015195890(Taxable Income – 50Lakh) *70%
51958911000000010%
1000000110214700(Taxable Income – 1CR) *70%+281250
102147012000000015%
2000000120930000(Taxable Income – 2CR) *70%+871875
209300015000000025%
5000000153017830(Taxable Income – 5CR) *70%+3703125
53017831>37%

Surcharge and Marginal Tax (Above 60 and Below 80)

Taxable Income FromTaxable Income UptoSurcharge / Marginal Tax
050000000
50000015195530(Taxable Income – 50Lakh) *70%
51955311000000010%
1000000110214510(Taxable Income – 1CR) *70%+281000
102145112000000015%
2000000120929600(Taxable Income – 2CR) *70%+871500
209296015000000025%
5000000153017320(Taxable Income – 5CR) *70%+3702500
53017321>37%

Categories
monthly Compliance Calendar Payroll

Due Date Compliances Calendar For August 2019

Statutory compliances due dates calendar issued by Payroll Pedia for August 2019. Below are list of last dates Act wise:-

Date (by when) Applicable Act Details of Compliance
07-Aug-19 TAX DEPOSIT Monthly Deposit Tax Contribution
15-Aug-19 ESIC Monthly Deposit Esic Contribution
15-Aug-19 PROVIDENT FUND Monthly Deposit Pf Contribution
31-Aug-19 PERSONAL ITR  Income Tax Return Form for salaried individuals
20-Aug-19  PROFESSIONAL TAX Karnataka (Bangalore) [Monthly]
10-Aug-19  PROFESSIONAL TAX Andhra Pradesh (Hyderabad) [Monthly]
21-Aug-19  PROFESSIONAL TAX West Bengal (Kolkata) [Monthly]
30-Aug-19  PROFESSIONAL TAX Maharashtra (Mumbai) [Monthly]
15-Aug-19  PROFESSIONAL TAX Gujarat (Ahmedabad) [Monthly]
30-Aug-19  PROFESSIONAL TAX Orissa (Monthly)
10-Aug-19  PROFESSIONAL TAX Madhya Pradesh (Indore) (Monthly Salary)
30-Aug-19  PROFESSIONAL TAX Guwahati (Assam) (Monthly)
31-Aug-19 LWF Haryana
15-Aug-19 LWF Punjab
15-Aug-19 LWF Chandigarh