Stuff required for a Perfect Payroll

STUFF YOU NEED FOR A PERFECT PAYROLL

Is payroll simple or complex ? The answer can be subjective, given the situation and process used in an organization.

As a general trend, the challenges in Payrolls have risen over the past decade primarily on account of

  • Tax withholdings and its associated complexities
  • Changing Labour laws and its reporting requirements
  • Employers providing complex employee benefits to attract talent
  • Individuals are required to be “Multi-Skilled” than just a “Salary Expert”
  • Varying Internal Reporting Requirements – Companies have a global footprint
  • Deduction and recoveries of Provident Funds, ESI, PT & their reporting accurately
  • Matters which are sub-judice – The larger the employee strength, the higher the stakes
  • Centralized Payroll requires the individual to be aware of local city and state requirements, wherever employees/offices are present

Further in most organizations, Payroll is now required to exceed Employee Expectations and have better Service Delivery norms inline with larger Multi Nationals.

While you are best to understand the dynamics of your payrolls, here’s our Contribution – a 10 Point “Stuff required for a Perfect Payroll” – In an Indian perspective.

Stuff you need for a perfect payroll

Click to Download the E-Book

Webinar On Traces Issues – Download PPT and Video

Hope you are doing great.

We missed you for our Conference call cum Webinar on Friday (28th Feb’14) about Traces communication on “Imposition of Penal Interest u/2 220(2) if actions are not taken by the Deductors (Employers/Companies/We).”

We are sorry that you were not able to make it – we hope it would have gained you some interesting insights. However we have recorded the session for the purpose of sharing knowledge & expertise we have accumulated over the period of time.

Click here to Access the Webinar Presentation & Video – for FREE.
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Imposition of penal interest u/s 220(2) by TRACES 28th Feb’14

We are quite aware of the fact that each of us have been receiving quite a lot of communications from TRACES [ the TDS Processing Cell ] on Justification reports, Intimations, Demands, etc. Many of us have also been receiving Hard-Copy Letters to this effect from TRACES.

One may sometimes wonder why such a huge amount of flow of Information ! It does make us a lot uncomfortable & we would want it to be sorted out as soon as possible.

One such email TRACES sent out on 21st of February talks about imposition of Penal Interest u/s 220(2) if actions are not taken by the Deductors ( Employers / Companies / We ).

So, the next question is what action are we supposed to take ?
•    Just Pay the demand ?
•    Do a correctional filing ?
•    or do both ?
•    Under what section ?
•    Is it genuine ?
•    What are the consequences of it ?
•    What is the process ?
•    In large Organizations such as yours, how would you be sure of being fully compliant to these requirements ?
Being The Compliance Experts, we believe in sharing the knowledge & expertise we have accumulated over a period of time.

Click here to Access the Webinar Presentation & Video – for FREE.

Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.
They call us “The Specialists”

Conference call invitation on imposition of penal interest us 220(2) by TRACES

Greetings !

We are quite aware of the fact that each of us have been receiving quite a lot of communications from TRACES [ the TDS Processing Cell ] on Justification reports, Intimations, Demands, etc. Many of us have also been receiving Hard-Copy Letters to this effect from TRACES.

One may sometimes wonder why such a huge amount of flow of Information ! It does make us a lot uncomfortable & we would want it to be sorted out as soon as possible.

One such email TRACES sent out on 21st of February talks about imposition of Penal Interest u/s 220(2) if actions are not taken by the Deductors ( Employers / Companies / We ).

So, the next question is what action are we supposed to take ?
•    Just Pay the demand ?
•    Do a correctional filing ?
•    or do both ?
•    Under what section ?
•    Is it genuine ?
•    What are the consequences of it ?
•    What is the process ?
•    In large Organizations such as yours, how would you be sure of being fully compliant to these requirements ?
Being The Compliance Experts, we believe in sharing the knowledge & expertise we have accumulated over a period of time.

The Conference Call cum Webinar
On the 28th of February, we will tell you about various ways to solve them. We do over 200 Correction Filings every day & hence are able to arrive at ways, not only to sort them but also to aviod re-occurance.

More details about the Conference Call is here :

CLICK HERE FOR MORE DETAILS
ON THE CONFERENCE CALL

Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.
They call us the Specialists

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No TDS on Service Tax – Applicable on all Sections

# 1 – TDS On Service Tax not limited to Sec. 194J
CBDT issues circular on 13-01-2014 – not limited to Sec.194J

While we are aware of the CBDT issuing a clarification circular based on a High Court judgement, most of us feel is that it applies only to Sec.194J, which is incorrect. It applies to all the sections part of Chapter XVII-B of the Income Tax Act, 1961.

Further, there are some other conditions mentioned, satisfying only TDS shall not be applicable on service tax charged.

Read More on the Conditions Here. Click Here.
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# 2 – Application for a TDS Exemption Certificate to be decided in 30 days Under-Secretary instructions to CCIT’s

More accountability will follow post this circular, as the Under Secretary to GOI has asked everyone to follow the timelines mentioned in the Citizens Charter. The Lower Deduction (or) No Deduction applications that we would make would now be (technically speaking), need to be decided in 30 days or Less. Thats some good news !

See the Order of the Under Secretary Here. Click Here.
What is Citizen’s Charter of the ITD ? Click Here.

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Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.
They call us the Specialists

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Choose an Efficient Partner for your Employee’s IPV

Choose an Efficient Partner for your Employee’s Investment Proof Verification
Save yourself from the Miseries of Incorrect Data

Verification of employees’ investment proof is an annual activity that every company needs to perform as it is a mandate by the Income Tax Department. The company is responsible for accurate Tax Deduction based on the proof submitted by the employees, hence it becomes imperative for you to choose a partner who is Accurate, Agile & expert in Employee Taxes.

How can Relativity assist you ?
Over the last 5 years, we have verified over 2.37 Lakh employee submissions over 67 Corporates in India.

We do, Customized to Client requirements :-
•    We are Taxation experts
•    We only depute FULL TIME Employees
•    We work at your premises there by there is 100% confidentiality of data
•    Our Employees are well-trained & have good knowledge on Taxation
•    We ensure 100% compliance
•    We can provide data in over 18 different formats to ensure easy import in your payroll software
•    On time delivery

Our Expertise ?
•    Relativity provides end-to-end solutions for Investment Proof Verification by providing expert resources to carry out the activity
•    We have verified over 2,30,000 lakh records for 67 Corporates across India in the last five years.
•    Our services are based on the guidelines furnished by the IT Department and addresses customer needs
We would love to explore opportunities to work with you.

For Further details, please click below
Know our processAsk a questionquote cost calculator Download IPV broucher

Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.
They call us the Specialists

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Changes in PF Transfer Process & 2 More

# 1 – Minor Change in PF Transfer Process
Transfer application can be submitted at either of the Employer

While the EPFO has been taking many steps to ease the PF Transfer & withdrawal process, this change – though Minor adds a lot of Flexibility to the employees wanting to transfer their PF accumulations from one employer to an other.

Read More About the Revised Process Here. Click Here.
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# 2 – TDS Exemption Circular For Employers – Rebate u/s 87A & Sec 80EE New Benefits introduced for FY 2013-2014

As we all prepare ourselves for the annual “Income Tax Document Verification” excercise in December / January, the detailed IT Exemption circular issued by the Income Tax Department dated 10th October 2013, we discuss 2 Major inclusions in this FY.

Detailed Explanation for the 2 Major Inclusions Here. Click Here.

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# 3 – Q-ETDS Compliance – Line Entries cannot be deleted
Deletion of Line Entry is not possible during Correction returns.

Since July, there have been many changes in the Q-ETDS returns filing procedure. Earlier, there was a possibility to delete in-correct line entries but since last 2 months this facility has been withdrawan. Any Deletion of the Line Entries is possible only by the assessing officer now. This applies for FY 2007-08 onwards.

See More Information Here. Click Here.
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Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.
They call us the Specialists

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FinMin May Raise Wage Cap For PF & 2 More

# 1 – FinMin May Raise Wage Cap For PF
From Rs.6,500 to Rs.15,000.

While the government is looking at every possible opportunity to raise money and cut down on external borrowings, this options seems to be more than lucrative ! Of-course, it comes with some “Conditions Apply”.

Read About the Impact and Actual Proposal Here. Click Here.
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# 2 – TDS Credit to be allowed even if Tax Credit in Form 26AS not available – High Court
A Verdict to rejoice.

Yet another judgement delivered to the benefit of Common Man. Many a times, Demand Notices (or) Refund Adjustment intimations are received by Individuals due to Tax Credit not available in Form 26AS, inspite of TDS being actually deducted by the Deductors & Form 16 (or) Form 16A issued.

See the Actual Judgement Here. Click Here.
Will this verdict really help ? Let us know your thoughts. Click Here.
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# 3 – 80C Deduction – Tuition Fees to include all types of fees paid to school and playschool !
Development Fees & Donations continue to be un-exempt.

The Circular dated 10.10.2013 clarified certain aspects and the interpretation is now simpler. For Example – “Full Time Education” also includes Play school activities, pre-nursery & nursery classes. Further not only Tuition Fees but Admission, Exam, Computer, Project, Practical Fees will now be allowed for exemption under Sec. 80C.

See the Full Circular Here. Click Here.
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Who are we ? 64,000 Employees spread across 121 Corporate benefit from our Expertise in Payroll, Taxation or Compliance.

They call us the Specialists
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Ensure 100% Reporting Accuracy on Q-ETDS Returns

Change

Ensuring 100% accuracy with the reporting requirements requires every organization & the team involved to know & adapt to the changes swiftly. This ensures Zero Latency, Accurate Data & a step towards World Class Organization…

As Q2 ends by 30th September, It is time for us to undertake the Q-ETDS Reporting requirements. Recently, the TDS cell has come out with some changes in the reporting requirements & has added some new data’s to be declared mandatorily. Some of the Significant Changes are as below:

1.    Reporting of Lower Deduction Certificate Number made Mandatory. Earlier we were only providing Lower Deduction Applicable – Yes / No.

2.    Country of Residence of the Deductee needs to be mentioned for Section 195 Deductee’s under Form 27Q.

3.    Change of Field in 24Q, Annexure 1 – “Taxable amount of which tax deducted” has been changed to “Amount paid/Credited”

4.    In Form 24Q, Annexure 2 – if PAN provided is invalid (i.e. PANNOTAVBL, PANAPPLIED & PANINVALID), then the flag in the column “Whether tax deducted at higher rate” mandatorily needs to be “Yes”

CLICK HERE TO DOWNLOAD THE FULL LIST OF CHANGES

This E-Book provides access to
1.    Exhaustive & Complete List of changes applicable for Q-ETDS Filing
2.    Expected Bottlenecks
3.    Validations to be done to achieve 100% Reporting Accuracy

Accurate
Over 64,000 Employees spread across 121 Corporates benefit from our Expertise in Payroll, Taxation or Compliance. They call us The Compliance Specialists.

Tax Compliance Made Easy

Greetings from Relativity !

Our Tax Filing Help Desks would help your associates/employees File Their Tax Returns with Peace of Mind.

Being one of the E-Return Intermediary with the Department of Income Tax, we have assisted more than 40,000 Individuals in their Tax Compliance during 2009, 2010, 2011 & 2012. We have also been  preferred vendors for many MNC’s & Large corporates over the last 4 years and consistently won the trust of our clients for Quality services we provide.

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We Enable 118 Large Companies to make a difference to their Employees. For them, Its Employees First.

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Our Corporate Help Desk serves 20,000 Individuals do their Tax Compliance the Smart Way. For you – We gift you with Peace of Mind.
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