If you recall, we had published a statutory update on 18th Dec 2020 regarding the revision of Labour Welfare Fund (LWF) contribution for Karnataka State. This was as per the gazette notification dated 1st Dec 2020. The recent statutory update on LWF amendment explained the restoration of previous LWF contribution rates.
However, the government of Karnataka has now revoked the LWF amendments as per the new press release issued on 19th Dec 2020. The latest revised LWF contributions for Karnataka state are as follows:
Please note that we have now revoked the changes in our application as well. This is how the latest update concerns you:
For more details, view the Karnataka Labour Welfare Press Release here.
The government of Karnataka has recently announced an amendment under Karnataka Labour Welfare Fund Act, 2017. As per the gazette notification dated 1st Dec 2020, the revised rates of Karnataka Labour Welfare Fund are:
The new amendment will be applicable to all factories which consist of 10 or more employees and establishments having 50 or more employees on any day during the preceding 12 months. We have implemented the changes in our application, and this is effective from December 2020 payroll.
For more details, view the Labour Welfare Amendment Circular here.
Government of India (CBDT) has announced a further extension on various due dates related to Direct Taxes & Benami laws. The time limits are extended to provide relief to taxpayers in the challenges faced by them due to continuous changing statutory and regulatory compliances.
Following are the further extensions provided by CBDT:
1. Due date to issue Form 16 is extended from 30th June 2020 to 15th Aug 2020. 2. Due date to link PAN & Aadhaar is extended from 31st Dec 2020 to 31 Mar 2021.
According to an announcement made by the Employees State Insurance Corporation (ESIC) dated 18th May 2020, the due date for filing return of ESI contribution is extended up to 11th Jun 2020. This would be applicable for all the contributions during the period of Oct 2019 to Mar 2020. ESIC has taken this step to support the establishments considering their hardships through the Covid-19 pandemic. No penalty or interest or damage will be imposed on establishments during the extended period. This would offer some relief to employers following a nationwide lockdown since March 25. Click here to view the order copy issued by ESIC.
The government of India has taken a significant move by reducing the rate of ESI contribution. The move aims at formalizing India’s informal workforce and expanding social security coverage. The reduced rate of contribution will bring about a substantial relief on take-home salary of workers as well as to reduce the financial burden of employers.
The total contribution towards ESI was reduced from 6.5% of an employee’s wages to 4%. Employers’ contribution will come down from 4.75% to 3.25%, and the employee’s contribution lowered from 1.75% to 0.75% of their wages. The reduced rates will be effective from July 1, 2019. The gross ceiling of scheme coverage will remain unchanged as 21000/-. Employees need not worry because a lower rate of contribution does not affect the benefits defined in the scheme. We have implemented the changes in greytHR and this will be effective from July payroll.
Government of India has published the draft copy of ESI Gazette Notification and you can find more details on our blog.
If you recall, the tax department (CBDT) at the last moment announced major changes to Form24Q and Form16 reporting formats. We had to scramble to get the changes done in greytHR so that you could do the filing as per the new requirements.
Due to the hardship caused to deductors, CBDT has extended the due date for filing Form24Q returns for the 4th quarter and for issuing Form16 to employees.
CBDT orders the following:
For more details, you can view the order copy issued by CBDT.
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