According to this announcement, any employee of Haryana Government, whether official or non-official, if their name is included in the voter list of Rajasthan state, then the government will provide them holiday for voting on 25th November.

You will be given leave to vote

Let us tell you that this decision has been taken by the government under the right to vote for Rajasthan Assembly elections 2023. According to this order issued by the Office of the Chief Secretary, all the government and non-government employees of Haryana State Government, whose voter card is in Rajasthan state, will be given special casual leave by the Haryana Government and The special thing is that no amount will be deducted from the salary for this.

Voting is on 25th in Rajasthan

Let us tell you that this decision has been taken by the Haryana Government under Section 135-B of the Representation of the People Act 1951. Voting for the assembly elections is going to be held in Rajasthan on the 25th, in which on one hand the current Gehlot government is trying to ensure its victory and preparations to form the government once again, while on the other hand, BJP under the leadership of Prime Minister Modi is ruling the state. Claiming to form government.

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For most employees, House Rent Allowance (HRA) is a common component of their salary structure. Although it is a part of the salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRAgets exempted under Section 10 (13A) of the Income-tax Act, 1961.

The amount of HRA exemption is deductible from the total income before arriving at a taxable income. This helps the employee save tax. Remember, the HRA received is fully taxable if an employee is living in his own house or if he does not pay any rent.

Who can avail HRA?
The tax benefit is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation. Self-employed professionals cannot avail the deduction.

Click here to use our HRA Calculator 

How much is exempted?
The exemption for HRA benefit is the minimum of:
i) Actual HRA received

1. ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and
   iii) Excess of rent paid annually over 10% of annual salaryFor calculation purpose, the salary considered is ‘basic salary’. In case ‘Dearness Allowance (DA)’ (if it forms a part of retirementbenefits) and ‘commission received on the basis of sales turnover’ is applicable, they too are added to compute the minimum HRA exemption available.The tax benefit is available to the person only for the period in which the rented house is occupied.Example of HRA calculation
   Let’s say an individual, with a monthly basic salary of Rs 15,000, receives HRA of Rs 7,000 and pays Rs 8,400 rent for an accommodation in a metro city. The tax rate applicable to the individual is 20 percent of his income.

   To avail HRA benefit, the least of the following amount (yearly) is exempted, rest is taxable:
   i) Actual HRA received = Rs 84,000
   ii) 50% of salary (metro city) = Rs 90,000 (50% of Rs 1,80,000)
   iii) Excess of rent paid annually over 10% of annual salary = Rs 82,800 (Rs 1,00,800 – (10% of Rs 1,80,000))

   It shows that of Rs 84,000 actually received as HRA, Rs 82,800 gets tax exemption and only the balance of Rs 1,200 gets added to the employee’s income, on which a tax of Rs 240 ( 20 per cent slab ) gets payable.

   Documents
   HRA exemptions can be availed only on submission of rent receipts or the rent agreement with the house owner.

   It is mandatory for the employee to report the Pan Card of the ‘landlord’ to the employer if the rent paid is more than Rs 1,00,000 annually.

   Special cases
   There could be special scenarios in claiming HRA tax benefit, such as:

   Paying rent to family members
   The rented premises must not be owned by the person claiming the tax exemption. So if you stay with your parents and pay rent to them then you can claim that for tax deductions as HRA. However, you cannot pay rent to your spouse. As, in the view of the relationship, you are supposed to take the accommodation together. Thus, these transactions can invite the scrutiny from the Income -tax Department.
   
   
   
   Even if you are renting the house from your parents, make sure you have documentary evidence as proof that financial transactions regarding your tenancy takes place between you and your parent. So keep a record of banking transactions and rent receipts because your claim can get rejected by the tax department if they are not convinced by the authenticity of the transactions. Recently, there has been an instance in which the HRA claim of a salaried taxpayer was rejected by the Mumbai income tax appellate tribunal because the claim for HRA did not appear genuine to the tax officials.

   Also Read: For tax relief, you need proof of rent paid to kin

   Also Read: 10 things to do so that HRA claim does not get rejected

   2. Own a house, but staying in a different city
   One can avail the simultaneous benefit of deduction available for the home loan against ‘interest paid’ and ‘principal repayment’ and HRA in case your own home is rented out or you work in another city.

   Individuals who don’t get HRA but pay rent
   There may be some employees who might not have HRA component in their salary structure. Also, a non-salaried individual might be paying rent. For them, Section 80 (GG) of the Income-tax Act offers help.

   An individual paying rent for a furnished/unfurnished accommodation can claim the deduction for the rent paid under Section 80 (GG) of the I-T Act, provided he is not paid HRA as a part of his salary by furnishing Form 10B.

   How much
   The least of the following is available for exemption from tax under Section 80GG:
   (i) Rent paid in excess of 10% of total income
   (ii) 25% of the total of the total income*
   (iii) Rs 5,000 per month

   *Under this section, the total income is calculated as gross total income minus long-term capital gains, the short-term capital where Securities Transaction Tax (STT) has been paid and deductions available under Sections 80C to 80U, except Section 80GG.

   Conditions
   While claiming a tax deduction, one must remember that the individual himself or his/her spouse, or minor child, or as a member of the Hindu Undivided Family (HUF) must not own any accommodation. Also, if the individual owns any residential property at any place and earns rent from it then no deduction is allowed.

   One can avail the simultaneous benefit of deduction available for the home loan against ‘interest paid’ and ‘principal repayment’ and HRA in case your own home is rented out or you work in another city. However, the same is not available in case of Section 80GG.

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The post Payment of Wages Act 1936 first appeared on Rightsofemployees.com.

What does law say about the pension policy for employees?

In India there is an Act called as The Employees’ Pension Scheme, 1955 which is applicable to all factories and other establishments to which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies. This Scheme is meant for members of the Provident Funds subscribing to Employees’ Provident Fund Scheme, 1952 or any scheme exempted thereunder. The pension policy is introduced as a social policy to the employees to survive their livelihood after the age of retirement. This is a social benefit by which the employees do not need to worry about their sustenance in their later stage of live.

What are the eligibility criteria for availing this facility of pension?

There are two forms of membership availability under the scheme:

• • Membership of the scheme under The Employees’ Pension Scheme, 1955 is compulsory for – All Provident Fund subscribers including those employed in Exempted Establishments contributing to the Employees’ Family Pension Scheme 1971, and – To all new entrants to the Provident Funds Scheme, 1952 from November 16, 1995 onwards, automatically become members of the Employees’ Pension Scheme.

• Membership under the scheme is also available on Optional basis – Existing members of exempted and un-exempted Provident Fund Scheme as on November 15, 1995 who are not members of the Family Pension Scheme, 1971. – Members of the Family Pension Scheme, 1971 who left employment between April 1, 1993 to November 15, 1995 whether they have withdraw their benefits of not. – Beneficiaries of Family Pension Scheme, 1971 who have died on or after April 1, 1993.

What are the benefits available to members under this Scheme?

The benefits that are provided to the members under the Employees’ Pension Scheme, 1995 are:

• Pension Payment for life on Retirement/Superannuation.
• Pension Payment for life on invalidation during employment.
• Lump sum amount payment to the member by way of commutation of Pension upto one third pension amount on optional basis.
• Capital return in option formula basis upon cessation of members pension payment.

What are the benefits available to family members upon death of the member?

The benefits that are provided to the family members upon the death of the member are as follows:

• • Payment of pension to spouse for life or until remarriage.
  • Payment of pension to children (two at a time) till they attain the age of 25 years additionally along with pension payment to spouse. For total and permanently.
  • Orphan Pension to children at higher rate upon cessation of Pension Payment to spouse.
  • To Nominee / Dependant parents for life in case member is unmarried or having no eligible family member.

What are the causes of death that are covered under the scheme for members for eligibility for payment of pension after death?

The scheme covers members death risk unconditionally – irrespective of whether such death occurs:

• While in service.
• Away from employment and not contributing to the fund, or
• After retirement as a pensioner.

Is there a provision facilitating benefits for seasonal or casual employees under the scheme?

 There are following provisions that are specified to facilitate the seasonal or casual employees:

• Employees engaged seasonally in any establishment, the period of “actual service” in any year, notwithstanding that such service is less than a year, shall be treated as full year.
• Pensionable salary will be worked out “Notionally” for full month in the event if drawal of salary for a part of the month.
• Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment

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ESIC scheme was inaugurated in Kanpur on 24^th February 1952 (ESIC Day) by then Prime Minister Pandit Jawahar Lal Nehru. The venue was the Brijender Swarup Park, Kanpur and Panditji addressed a 70,000 strong gathering in Hindi in the presence of Pt. Gobind Ballabh Pant, Chief Minister Uttar Pradesh, Babu Jagjivan Ram, Union Labour Minister, Raj Kumari Amrit Kaur, Union Health Minister, Sh.Chandrabhan Gupt, Union Food Minister and Dr.C.L.Katial, the first Director General of ESIC.

ESIC scheme was simultaneously launched at Delhi as well and the initial coverage for both the centers was 1,20,000 employees. Our first Prime Minister was the first honorary insured person of the Scheme.

The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and it is designed to accomplish the task of protecting ‘employees‘ as defined in the Employees’ State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some States threshold limit for coverage of establishments is still 20. Employees of the aforesaid categories of factories and establishments, drawing wages upto Rs.15,000/- a month, are entitled to social security cover under the ESI Act. ESI Corporation has also decided to enhance wage ceiling for coverage of employees under the ESI Act from Rs.15,000/- to Rs.21,000/-.

The ESI Scheme is financed by contributions from employers and employees. The rate of contribution by employer is 4.75% of the wages payable to employees. The employees’ contribution is at the rate of 1.75% of the wages payable to an employee. Employees, earning less than Rs. 137/- a day as daily wages, are exempted from payment of their share of contribution.

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Clause (2) of Article 276. It is a state-level tax. It is also a source of revenue for the State Governments which helps the different state in implementing schemes for the welfare and development of the region.

• Tax can be paid Monthly, Semi-Annually or Annually.
• It also consists of Rate-slabs (mentioned below) which are based on the total income of the professionals.

Eligibility

Tax is imposed on:

• Salaried individuals,
• working in government or non-government entities,
• Chartered Accountants,
• Doctors,
• Lawyers etc or carry out some form of business.

Exemptions

• Any person who is suffering from a permanent physical disability (including blindness).
• Parents or guardian of any person who is suffering from mental retardation.
• Persons of age 65 years and above (60 years in a case of Karnataka).

Employer’s Responsibility

In the case of salaried professionals and wage earners, the tax is deducted from the employee salaries. Employers have to pay tax on behalf of their workmen/employees to the State Government. Owner also has to file a return with proof of tax payment within the specified time.

Registration

The employer must apply for the registration within 30 days of the appointment of staff in the business. If the office is in more than 2 states, then different applications need to be sent to the relevant authorities under different states.

Documents Required

1. A copy of PAN Card of your company.
2. Registration Certificate.
3. A copy of Memorandum Of Association (MOA) and Article Of Association (AOA).
4. List of Directors/Partners.
5. Identity and Address Proof of Directors/Partners.
6. A copy of Resolution of Board of Directors.
7. List of employees.
8. Address proof/Rental agreement of registered office/ warehouse.
9. Electricity/Maintenance Bill of registered office/factory/warehouse.
10. Canceled cheque from Company’s bank account.

• All these documents, registration application, and fees submitted to the State’s Tax department.
• After verification, officer issues a registration certificate and your Professional Tax Registration is successful.

Deposition of tax amount

• Case 1: If an employer has more than 20 employees, then make payment within 15 days from the end of the month.
• Case 2: if an employer has less than 20 employees, then make payment quarterly (i.e. by the 15th of next monthfrom the end of the quarter).

Penalty

• Case 1: Professional Tax Certification Number is not with the employer then the employer will incur a penalty of Rs.5/- per day.
• Case 2: No/late payment, the employer will incur the penalty of 10% of the tax amount.
• Case 3: Late filing of returns, a penalty of Rs. 300/- per return is chargeable.

States that impose professional tax

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra , West Bengal, Orissa, Tamil Nadu are states which impose professional tax.

States that do not impose professional tax

States: Arunachal Pradesh, Chandigarh, Delhi, Haryana, Himachal Pradesh, Nagaland, Punjab, Rajasthan, Uttaranchal, Uttar Pradesh.

Union Territories: Andaman & Nicobar, Dadra & Nagar Havelli, Daman & Dui, Lakshadweep.

 Sikkim: Professional Tax levied on Business Houses.

Conclusion

Professional tax is a tax levied by the State Government. All states do not impose this tax, only some of them collects tax.This tax is a source of revenue for the states who imposes it.

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