Category: Payroll

As you are aware that, Finance Budget (bill) 2015 was presented in the Indian Parliament by Finance Minister Mr. Arun Jaitley on February 28, 2015.

The Budget has reiterated the commitment to introduce GST w.e.f. April 1, 2016 and Direct Tax Code in offing has been more or less been shelved. Budget has rationalized many of existing provisions meeting the Industry expectation like giving comfort under Income Tax Act w.r.t. doubt over the taxability post Vodafone judgment. Tax benefits have been proposed towards implementation of the Government’s key projects in India’, ‘Digital India’, Skill India, ‘Ease of Doing Business’ and ‘Swachh Bharat (Clean India)’. Budget has also relaxed procedural issues faced by industry and corrected few of the erroneous provision of Act and Rules.

Some of the specific changes impacting us individually and Companies are as follows:

Direct Taxes: Key changes for individuals (Impacting in Payroll Calculation)

No change in the tax rate slabs for the individuals.
Additional Surcharge introduced, for Individuals, HUF, AOP or BOI @ 2% on total income exceeding Rs 1 crore.
Limit of contribution under section 80CCC to pension fund increased to Rs 5 lakhs from Rs 1 lakh.
80D -health insurance premium deduction limit increased to Rs 25000, from 15000.
80D – For senior citizens, health insurance premium deduction limit increased to Rs 30,000.
80DDB max limit up to 80000, from existing 60000.
PAN is mandatory for all transactions on purchase or transfer of property above Rs 1 lakh, this is to curb black money.
Exempted from tax on transportation allowance is increased to Rs 1600 per month from Rs 800 per month.
Contribution to Sukanya Samridhi account, Swach Bharat kosh, and Clean ganga fund are deductible from total income.
The employee earning income under a specified limit will have the option for either investment in new pension scheme or contribution to EPF.
Additional deduction of Rs 50000 under section 80CCD contribution.
On failure to furnish return of income or on concealment of income, in relating to the foreign assets the penalty upto 300% of tax evaded and imprisonment of 10 years.

Direct Taxes: Key changes for Companies

The corporate tax rate to be reduced from 30% to 25% over the next 4 years, and simultaneously eliminate the exemptions under the act.
The rate of tax for foreign companies as covered under section 115A for income by way of royalty and fees for technical services has been reduced to 10%. (from 1st April 2016).
Dividend distribution tax rate increased to 12% . The Tax Deduction at Source, Tax Collection at Source and advance tax payments will now be at the increased rates .
The threshold limit of audit under the provision of transfer pricing of the specified domestic transaction covered under section 92BA increased to Rs. 20 crore from Rs 5 crore earlier.( from 1stApril 2016).
GAAR provision shall apply from 1st April 2018.
Wealth tax act 1957 has been abolished from 1st April 2016.

Indirect tax

Tariff rate of basic excise duty rate increased from 12% to 12.5% (effective from 1.3.2015) Excise duty for Polypropylene and Sulphur increased from 12% to 12.5%.
Service tax rate increased from 12.36% to 14% (effective from date finance bill is passed ).
Additional Swatch Bharat CESS levied 2% on taxable value of services, (date to be notified).

Reading 2 & 3 together effective rate of service tax will be 16%

Excise duty on MS & HSD remain as it is however CENVAT duty portion reduced and Special Additional Duty ( SAD ) has been increased as follows.
SAD for Naphtha import reduced from 4% to 2%.
Period for return of job work material increased from 6 months to 2 years.
Presently document for CENVAT credit for input and input service should not be more than 6 month prior to date of taking credit the period has been increased to 1 year.
Rationalization in penalty provision under CENVAT Credit Rules.
Digital signature provisions introduced w r t service tax and excise.
CENVAT credit for both full and partial reverse charge payment allowed once service tax payment is done and payment of service provider to happen in 3 months. Earlier this was limited to full reverse charge cases.

Payroll

Payroll Manager Job Description

Post author By
Post date July 17, 2015

In Short : To manage, direct, control and process the company’s payroll and all other payroll related duties

Key responsibilities/accountabilities:

Coordination and management of entire payroll function.
Manage and supervise direct reports within the Payroll Team.
Assist with administering payrolls (month end consolidation and processing support as required).
Checking and auditing of all payrolls, ensuring legislative & award compliance (tax compliance, superannuation etc).
Reporting – Supporting Internal reporting requirements eg. Annual leave & Intercompany reports etc.
Projects as required ie. continual improvement and standardization of payroll operations and systems.
Manage Company Benefit programs eg Novated Lease, Superannuation, Medical if applicable.

Possible additional responsibilities/accountabilities:

Calculation and payment of termination payments (resignation/retirement/redundancy).
Payment and reconciliation of bonus payments.
Calculation, payment and reconciliation of payroll tax and group tax.
Administration, calculation, payment and reconciliation of all superannuation contributions.
Liaison with management and staff regarding all pay enquiries.
Preparation and reconciliation of monthly General Ledger wages journals.
Preparation and reconciliation of payment summaries.
Develop and update payroll reference manual for managers.
Perform system upgrades.
Ensure prompt maintenance of staff records at all times including archiving and filing.
Preparation of ad hoc reports as required.
Liaise with HR re staff appointments, terminations, remuneration, conditions of service and other relevant matters.
Workers compensation co-ordination i.e. process, monitor and file all claims and prepare payments.

Competencies required (knowledge, skills and abilities):

Comprehensive and working knowledge of payroll systems.
Demonstrated payroll management experience.
Demonstrated team leadership ability.
Attention to detail.
Ability to create, review and supply policies and procedures.
Legislative and award compliance – ability to interpret relevant awards and legislation.
Business process improvement experience.
Problem solving.
Analytical skills.
Numeracy skills – reconciliations and statistics.
Customer Service focus.
Excellent written and spoken communication skills.
Project Management.

Payroll

Uploading Income Tax Returns: e-Verification (Net Banking, Non – Net Banking) – User Manual

Post author By
Post date July 14, 2015

E-Verification while uploading a return (Non – NetBanking)

Upload Return -> Click Submit
The Return is uploaded (Pending for e-Verification)
Four e-Verification options provided – Taxpayer can choose any one of the options provided to e-Verify the return.

Option-1 -> “I already have an EVC and I would like to Submit EVC”
Option-2 -> “I do not have an EVC and I would like to generate an EVC”
Option-3 -> “I would like to generate Aadhaar OTP to e-Verify my return”
Option-4 -> “I would like to e-Verify later/ I would like to send ITR-V”

Option – 1 – “I already have an EVC and I would like to Submit EVC”

Step 1: Provide the EVC in the text box Click Submit.
Step 2: Download the Acknowledgement (No Further action required).

Option 2 – “I do not have an EVC and I would like to generate an EVC”

Two options are provided – Taxpayer can choose any one of the options if they do not have an EVC

Generate EVC through NetBanking.
Generate EVC to registered Email Id and Mobile Number.

Generate EVC through NetBanking:
Step 1: Login to e-Filing Portal through NetBanking.
Step 2: Click on e-Verify return.

Generate EVC to registered Email Id and Mobile Number:
Step 1: Enter the EVC sent to your registered Email Id / Mobile Number and Submit to e-Verify return.
Step 2: Download the Acknowledgement (No Further action required).

Option 3 – “I would like to generate Aadhaar OTP to e-Verify my return”

Pre-requisite: Taxpayer’s PAN and Aadhaar should be linked.
If Aadhaar is not linked, click on Link Aadhaar button and link the Aadhaar.

Step 1: Enter the Aadhaar OTP sent to your Mobile Number registered with Aadhaar and Submit to e-Verify return.
Step 2: Download the Acknowledgement (No Further action required).

Option 4 – “I would like to e-Verify later/ I would like to send ITR-V”

Step 1: Click on Continue Download ITR-V
Step 2: Submit ITR-V to CPC, Bangalore.

e-Verification of an already uploaded return (Non – Net Banking)

Click e-Verify Return under e-file.
Uploaded returns (120 Days) which are yet to be e-Verified are displayed in a table.
Click on e-Verify (for the return already uploaded)
Three e-Verification options provided – Taxpayer can choose any one of the options provided to e-Verify the return.

Option-1 -> “I already have an EVC and I would like to Submit EVC”
Option-2 -> “I do not have an EVC and I would like to generate an EVC”
Option-3 -> “I would like to generate Aadhaar OTP to e-Verify my return”

Option 1 – “I already have an EVC and I would like to Submit EVC”

Step 1: Provide the EVC in the text box Click Submit.
Step 2: Download the Acknowledgement (No Further action required).

Option 2 – “I do not have an EVC and I would like to generate an EVC”Two options are provided – Taxpayer can choose any one of the options if they do not have an EVC

Generate EVC through NetBanking.
Generate EVC to registered Email Id and Mobile Number.

Generate EVC through Net-Banking:

Step 1: Login to e-Filing Portal through Ne Banking.
Step 2: Click on e-Verify return.

Generate EVC to registered Email Id and Mobile Number:

Step 1: Enter the EVC sent to your registered Email Id / Mobile Number and Submit to e-Verify return.
Step 2: Download the Acknowledgement (No Further action required).

Option 3 – “I would like to generate Aadhaar OTP to e-Verify my return”
Pre-requisite: Taxpayer’s PAN and Aadhaar should be linked.
If Aadhaar is not linked, click on Link Aadhaar button and link the Aadhaar.

Step 1: Enter the Aadhaar OTP sent to your Mobile Number registered with Aadhaar and Submit to e-Verify return.
Step 2: Download the Acknowledgement (No Further action required).

e-Verification while uploading a return through Net Banking Login

Login to e-Filing through NetBanking
Upload Return Click Submit
The Return is uploaded (Pending for e-Verification)
Three e-Verification options provided – Taxpayer can choose any one of the options provided to e-Verify the return.

Option-1 -> “I would like to e-Verify my return now”
Option-2 -> “I would like to generate Aadhaar OTP to e-Verify my return”
Option-3 -> “I would like to e-Verify later/ I would like to send ITR-V”

Option-1 – “I would like to e-Verify my return now”

Step 1: Click on “I would like to e-Verify my return now” Click Continue
Step 2: Download the Acknowledgement (No Further action required).

Option 2 – “I would like to generate Aadhaar OTP to e-Verify my return”
Pre-requisite: Taxpayer’s PAN and Aadhaar should be linked.
If Aadhaar is not linked, click on Link Aadhaar button and link the Aadhaar.

Step 1: Enter the Aadhaar OTP sent to your Mobile Number registered with Aadhaar and Submit to e-Verify return.
Step 2: Download the Acknowledgement (No Further action required).

Option 3 – “I would like to e-Verify later/ I would like to send ITR-V”

Step 1: Click on Continue Download ITR-V
Step 2: Submit ITR-V to CPC, Bangalore.

Note: User who has already uploaded the return and opts to e-Verify the existing return can use the above mentioned options other than Option 3.

Payroll

LTA Exemption ( Non taxable LTA) 2 journeys performed in a block of 4 calendar years

Post author By
Post date July 14, 2015

LTA Exemption

An employee is entitled to LTA exemption under section 10(5) of Income Tax Act in respect of LTA received for himself and his family (spouse, children, dependant parents, dependant brothers and sisters) for traveling to any place in India.

The exemption is available for 2 journeys performed in a block of 4 calendar years. The current block is January 2014 to December2017.

Proofs to be submitted for LTA Exemption

Original Bills for travel as indicated below along with LTA claim form

Travel by Air – Original Air Tickets along with Boarding Pass
Travel by Train – Original Train Tickets
Travel by Cab – Original Invoice for Car Hire, Trip Sheet, receipts for cash payments made.

The following points should be noted

The leave travel should be to places within India for leave travel allowance exemption calculation. Overseas travel will not be considered for exemption calculation.
Approved leave requisition must be on record of HR department.
An employee receives payment under the head of “LTA” each month, however the tax exemption on the same is not available each An employee can claim tax exemption on the LTA amount twice in a “block of 4 years” only.
In the event an employee does not claim tax exemption on LTA or claims tax exemption on LTA only once in a block of 4 years, the exemption can be carried forward and availed in the first year of the next block of 4 years. In such a case an employee could claim LTA exemption thrice in a block of 4 years.
An employee has to travel in order to claim tax exemption on LTA. If an employee does not travel and consequently does not claim tax exemption, the LTA amount paid to employee will be fully taxable.
The maximum LTA amount exempt for tax purpose cannot exceed the amount of expenses actually incurred for the purpose of travel.

Travel expenses incurred for an employee’s family members can be considered for tax exemption. In addition, an employee’s parents, brothers and sisters can be considered as family if they are wholly dependent on the employee. Expenses towards food and lodging cannot be considered for tax exemption. Only travel expenses can be considered for tax exemption.
The tax exemption of LTA shall be calculated as per the following guidelines:

Mode of travel	Maximum extent of tax exemption
For journey performed by air	Air economy fare of the national carrier (Indian Airlines or Air India) by the shortest route to the place of destination.
Where place of origin of journey and destination are connected by rail and the journey is performed by any mode of transport other than air	Air-conditioned first class rail fare by the shortest route to the place of destination.
Where place of origin of journey and destination or part thereof are not connected by rail	Where a recognised public transport system exists, the first class or deluxe class fare on such transport by the shortest route to the place of destination. Where no recognised public transport system exists, the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey has been performed by rail

80C Deductions India Payroll Payroll Salary Tax Return (ITR)

Good news to taxpayers, No more sending ITR-V by post after income tax filing – Verification with aadhar card introduced

Post author By
Post date July 11, 2015

Good news to taxpayers, No more sending ITR-V by post after income tax filing – Verification with aadhar card introduced.

Dear Taxpayers,

There is a good news to taxpayers. CBDT recently announced that taxpayers who filed their income tax returns online will no longer have to send the ITR-V paper acknowledgement by post to CPC Bangalore, if they have aadhar card which can be used for verification purpose.

Instead of manual verification, a new Electronic Verification Code has been introduced to verify the e-returns. For that one will have to mention their aadhar card number in ITR form, and tax-payer will get an OTP number on their mobile for verification, which needs to be completed on the website of tax filing.

You get a row devoted to Adhaar card no on page one. in ITR1, it is on row no.

But I dont have Aadhar Card ?

Don’t worry. You can always send the physical documents ITV-V to CPC, Bangalore like you did earlier. You can do that even if you have aadhar card. This new system of verification is just an alternative way for those who have aadhar card.

Govt will implement new system where you don’t have to send the Form to CPC if you have ADHAAR card but for now, follow the same procedure but use AADHAAR in ITR. New implement can be effect as soon as possible.@ Ajit K. yadav

Do you want to file your income tax return? Need Assistance?

Call Now: 96 544 212 88

Last date for filing income tax returns for individuals: July 31 (August 31 for AY 2015-16)

Due date (August 31 for AY 2015-16) for filing the tax return for salaried individuals. Note that you can file income tax return even after the due date. Such returns are called belated returns. However, there are some disadvantages of filing a belated income tax return.

Tags itr, sajal, tax, tax returns

Payroll

The Institute of Payroll Training and Management (IPTM)

Post author By
Post date July 4, 2015

[sdm_download id=”250″ fancy=”0″]

The fastest and easiest way to learn Indian Payroll and statutory compliances.

The Institute of Payroll Training and Management,Noida

(India’s one of the most preferred Payroll Training Institute)

Become Certified Payroll Professional, improve your skill, make your CV stronger and start growing fast.

Certificate in Indian Payroll Training Programme (CIPTP)

Increase interview calls and selection ratio by 10X times.

Professional! Student! IPTM offered Indian Payroll Training Programme (CIPTP) to Certified Payroll Professional, keeping in mind, to provide professional education, skill development and training For Payroll Processing & Statutory Compliances take in undertaking associated to Salary Components and shall help to students and working people to be certified, competitive and knowledgeable in their area of perform.

Course highlights

PART A : OVERVIEW OF PAYROLL MANAGEMENT

*The Role of Payroll Department in an Organization.

*Income Under The Head Salaries u/s 17(1).

*Salary Components in terms of Fixed and Variable.

*Claim and Reimbursement Management.

*Attendance Management and Resignation of Exits.

PART B : PAYROLL PROCESSING AND REPORTS

*Payroll Inputs, Setup Employee’s Information.

*Compliances rule & Tax Rates and Calculation.

*Verification and Payroll Checking Step by Step.

*Register, Slips, Bank Transfer and MIS.

*Statutory Reports PF, ESI, PT, ESI and TDS Form 24, 16.

PART C: TAX SAVING – DEDUCTIONS AND EXEMPTIONS

*Deduction (u/s 80C – u/s 80U) of Chapter VI-A.

*Examination of Inv. Proofs and Reimbursement.

*LTA, HRA, Leave Encashment and Gratuity Exemption

*Deduction of Entert. allowance and Professional Tax

*Deduction of Interest on Housing Loan u/s 24(b).

PART D : STATUTORY COMPLIANCES AND COMPUTATION

*Employee Provided Fund – PF

*Employee State Insurance – ESI

*Professional Tax – PTAX

*Labor Welfare Fund – LWF

*Tax Deduction at Source – TDS

Online Examination

Institute conducting online exam over the year and student can apply for exam after 30 days only. Exam will going on online computer bases on institute website.

Placement services

Payroll Professional are in great demand. Companies specializing in Payroll Outhouse or human resource outsourcing are constantly hiring skilled Payroll professional.

Questions and Answers

All questions are objective types and have 4 option to choose correct one and there is no negative marking.

Total No. of questions : 100

Each question have : 1 mark

Passing Marks : 55 required (55% in each group)

Duration : 2 hours

Payroll Training

Classroom Training

Classroom learning provides structure and motivation.

Online learning

Choose the self-directed or online instructor-assisted format.

Self Study

IPTM Self-Study workbooks teaches you all the essential aspects of using excel and payroll software on a day-to-day basis.

Other Features

Four Consecutive Weeks (30 Days) ( 4 Weeks Monday to Friday) : Plus 2 days of computer lab to practice MIS Advanced Excel Report Working with our Payroll expert team.

Fee Structure

Rs. 3,900/- (Includes all taxes)

Mini. Duration:	1 Months
Eligibility:	Graduation or equivalent
Maximum:	1 Years
Minimum Age:	No bar

Enroll Online Now

Registration Direct Link: http://www.iptm.org.in/Registration.aspx

80C Deductions ESIC Human Resource (HR) India Payroll LTA Others Payroll Provident Fund (PF) Salary Tax Return (ITR)

The generation of UAN for first time

Post author By
Post date July 4, 2015

Download Steps for generate UAN Online

A Universal Account Number (UAN) will be generated for each of the PF contributing members during the period 01/01/2014 to 30/06/2014 by EPFO. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number. This will help the member to view details of all the Member Identification Numbers (Member Id) linked to it. If a member is already allotted Universal Account Number (UAN) then he / she is required to provide the same on joining new establishment to enable the employer to in-turn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number (UAN).

The main objective behind this new function is to capture KYC details of its members in order to eliminate the dependency on the employer and improve the quality of service. The KYC details will be tagged against the allotted UAN rather the member id thereby eliminating the redundancy.

Payroll

Benefits available in EPF

Post author By
Post date July 4, 2015

Benefits available in EPF
A small part of your salary, i.e., 12% of your basic salary is invested in Employee Provident Fund and an equal amount is matched by your employer each month.

One can get pension under EPF
The EPF part is actually for your provident fund and EPS is for your pension. The 12% contribution made by you from your salary goes into your EPF fully, but the 12% contribution which your employer makes, out of that 8.33% actually goes in EPS and the rest goes into EPF. However, conditions to avail these benefits are given below:
One is entitled for pension only if one has completed the age of 58.
One is entitled for pension only if he has completed 10 yrs of service (in case of more than one companies, the EPF should have been transferred, not withdrawn)
The maximum Pension per month is subject to maximum of Rs 3,250 per month
Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.

No interest is given on EPS (pension part)
The compound interest is provided only on EPF part. The EPS part (8.33% out of 12% contribution from your employer does not get any interest. At the time of PF withdrawal, you get both EPF and EPS.
You might not get 100% of your Provident Fund money
You always get 100% of your EPF part, but for EPS there is separate rule. There is something called Table ‘D’ , under which its mentioned how much you get at the time of exit from your job, there is a slab for each completed year and you get “n” times of your last drawn salary (depending on the completed year of service).
Voluntary Provident Fund: You can invest more in Provident Fund
You can always invest more than 12% of your basic salary in Employee Provident Fund which is called voluntary provident fund. In this case the excess amount will be invested in PF and you will keep on getting the interest, but the employer is not supposed to match your contribution. He will just invest upto maximum of 12% of your basic, not more than that.
Withdrawing of EPF amount at job change is illegal
You can only withdraw your Employee provident fund money, only if you have no job at the time of withdrawing your money and if 2 months have passed.
Only transfer is allowed in case you get a new job and you switch to it. While there are no cases where EPF office tracks these things and takes up this matter, still just for your information you should know that if you got a new job and took it and then you are applying for withdrawal, its illegal as per law.
However in case of EPS, if the service period is less than 10 years, you’ve option to either withdraw your corpus or get it transferred by obtaining a ‘Scheme Certificate’. Once, the service period crosses 10 years, the withdrawal option ceases.
Just for your information, you can withdraw your EPF money without the help of past employer signature by attesting your withdrawal form by a bank manager or some gazzeted officer.
Your EPF gives you some life insurance too
This is because there is something called Employees’ Deposit Linked Insurance (EDLI) scheme and your organisation has to contribute 0.5% of your monthly basic pay, as premium for your life cover. However companies which already have life insurance benefits to employees as part of the company, are exempted from this EDLI scheme.

Tags Benefits available in EPF, No interest is given on EPS (pension part), One can get pension under EPF, Voluntary Provident Fund: You can invest more in Provident Fund, You might not get 100% of your Provident Fund money

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