Government Simplifies the Format and Procedure for Self Declaration in form No.15G or 15H

Government Simplifies the Format and Procedure for Self Declaration in form No.15G or 15H

Government Simplifies the Format and Procedure for Self Declaration in form No.15G or 15H to Reduce the Cost of Compliance and Ease the Compliance Burden for both, the Tax Payer and the Tax Deductor; Procedure for Submission of the Forms by the Deductor also Simplified;

Payee Can Submit the Self-Declaration Either in Paper form or Electronically; the Deductor will Not Deduct Tax and will Allot a Unique Identification Number (UIN) to all Self-Declarations in Accordance with a well Laid Down Procedure to be Specified Separately.

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Tax payers seeking non-deduction of tax from certain incomes are required to file a self declaration in Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961 (‘the Act’). In order to reduce the cost of compliance and ease the compliance burden for both, the tax payer and the tax deductor, the Central Board of Direct Taxes (CBDT) has simplified the format and procedure for self declaration in Form No.15G or 15H.  The procedure for submission of the Forms by the deductor has also been simplified.

 

Under the simplified procedure, a payee can submit the self-declaration either in paper form or electronically. The deductor will not deduct tax and will allot a Unique Identification Number (UIN) to all self-declarations in accordance with a well laid down procedure to be specified separately. The particulars of self-declarations will have to be furnished by the deductor along with UIN in the Quarterly TDS statements. The requirement of submitting physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been dispensed with. The deductor will, however be required to retain Form No.15G and 15H for seven years.

 

            The revised procedure shall be effective from the 1^st day of October, 2015.

 

The Notification issued vide S.O. No.2663 (E) dated 29th September 2015 is available on the website of the Department at www.incometaxindia.gov.in

 

Source : PIB

Bonus Hike : Good news expected soon - Reportedly Election Commission given its nod

As per reliable sources, Election Commission has given it’s nod for issuing ordinance on “Payment of Bonus Act”.

Now the matter will go to Cabinet and after it’s approval, necessary ordinance will be notified soon.

Earlier the Government decided to raise the ceiling of Rs 3500/- per month to Rs 10,000/- per month. From this year, the ceiling is going to be increased to as high as Rs 10,000 per month. In a letter from Secretary, Ministry of Labour and Employment, Mr S. Agarwal conveyed this  news to one of the 11 Central Trade Unions during 2nd Sep. 2015 one day Nation wide strike.

Source: http://paycommissionupdate.blogspot.in

BONUS ACT AMENDMENT - A REVIEW

THE PAYMENT OF BONUS ACT, 1965

         The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected therewith. 

        The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.

          Details of amendments to  the Payment of Bonus Act, 1965: 

SL. No	Year of Amendment	Eligibility limit (Rs. Per Month)	Calculation ceiling (Rs. Per Month)
1.	1965	Rs. 1600	Rs.750
2.	1985	Rs.2500	Rs. 1600
3.	1995	Rs. 3500	Rs. 2500
4.	2007	Rs. 10000	Rs. 3500

The last amendment of 2007 was notified on 13 December 2007 and made effective

 from 1^st April, 2006.

·        The minimum bonus of 8.33% of (Rs. 3500/- X 12= Rs. 42,000/-) is approximately Rs. 3500/-. 

·        The 20% of above referred Rs. 42,000/- is Rs. 8,400/-.  However, the limit is given as Rs. 8,300/-. 

·        The clause (vi) of Section 32 of the Act has also been omitted to bring employees employed through contractors on building operations within the ambit of the Act.