Navigating the Landscape: A State-wise Exploration of 661 Districts under the ESI Scheme (As of January 11, 2024)”

Posted by & filed under Esic-Circulars.

Description:

Dive into the intricate web of India’s social security infrastructure as we unveil a comprehensive breakdown of districts under the Employee State Insurance (ESI) Scheme.ESIC up-to-date information, as of January 11, 2024, reveals a nuanced perspective on the geographical distribution of 661 districts, categorized into 556 fully notified and 105 partially notified districts.

Shedding light on the areas where the ESI Scheme is yet to extend its coverage. Gain a profound understanding of the significance of this social security initiative, exploring its impact on healthcare accessibility and employment benefits for millions of workers across the nation.

ESIC detailed analysis not only presents the numbers but also delves into the implications of the ESI Scheme on the ground. Stay informed about the latest developments in employee welfare, as we navigate the complexities of this essential pillar in India’s social security framework.

Whether you’re an employer, employee, or a concerned citizen, this guide equips you with the knowledge to comprehend the expansive reach of the ESI Scheme and its role in shaping a secure and healthy workforce.

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“EPFO Removes Aadhaar as Proof of Date of Birth: Navigating Changes in Identity Verification”

Posted by & filed under Provident Fund - (Notification -Circulars).

Uidai News: UIDAI plans to expand Aadhaar's ambit from birth to death - The Economic Times

Introduction:

Introduce the recent circular issued by the Employees’ Provident Fund Organization (EPFO) and the corresponding directive from the Unique Identification Authority of India (UIDAI). Highlight the significance of this decision in the context of identity verification and the legal landscape.This information sheds light on an important change regarding the acceptance of Aadhaar as proof of date of birth.

The key points of the analysis are:

UIDAI’s Directive (Circular No. 08 of 2023):

  • Aadhaar is not recognized as proof of date of birth according to the Aadhaar Act, 2016.
  • UIDAI emphasizes that Aadhaar provides identity verification, not proof of birth.

EPFO Circular and Implementation:

EPFO, in response to UIDAI’s directive, removes Aadhaar from the list of acceptable documents for correcting the date of birth. The decision is reflected in Table-B of Annexure-1 of the Joint Declaration SOP issued earlier. The circular is approved by the Central Provident Fund Commissioner (CPFC).

Legal Implications and UIDAI’s Clarifications:

The UIDAI’s circular refers to the Aadhaar Act, 2016, and regulations governing enrolment and update processes. The Aadhaar Act and an office memorandum from December 20, 2018, explicitly state that Aadhaar is not proof of date of birth.Recent judgments, including one from the Bombay High Court, reinforce that Aadhaar cannot be considered as proof of birth.

Communication to AUAs/KUAs:

UIDAI’s directive is communicated to all Authentication User Agencies (AUAs) and Know Your Customer User Agencies (KUAs) through Circular No. 08 of 2023. EPFO’s circular is directed to all ACC (Zones), RPFC (Regional offices), and Office in charge of ROs for widespread implementation.

Necessary Modifications:

The Internal System Division (ISD) is directed to make necessary modifications in the application software to align with the updated guidelines.

Conclusion:

The removal of Aadhaar as proof of date of birth by EPFO aligns with UIDAI’s directive and the legal stance on Aadhaar’s limitations. This change emphasizes the role of Aadhaar in identity verification rather than proof of birth, and it highlights the importance of accurate documentation in the context of identity verification. Entities involved in date of birth corrections within EPFO should be aware of and adhere to these changes to stay compliant with the latest regulatory updates.This information provides a comprehensive overview of the situation and its implications for EPFO members and other stakeholders.

Circular Download :-

EPFO Removes Aadhaar as Proof of Date of Birth: Navigating Changes in Identity VerificationDownload

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Unraveling the Web: How the Income Tax Department Uses AI to Catch Fake Rent Receipts and Ensure Tax Compliance in India

Posted by & filed under Income Tax.

Fake House Rent Receipt

Submitting fake rent receipts to claim House Rent Allowance (HRA) for tax benefits is considered illegal, and the Income Tax Department in India is taking steps to crack down on such practices. Here are some key points on how the department detects fake rent receipts:

  • Use of Artificial Intelligence (AI): The Income Tax Department is utilizing AI to identify fake rent receipts. The AIS Form and Form-26AS are matched with Form-16 to cross-verify information related to PAN card transactions.
  • Matching PAN Numbers: If a taxpayer claims HRA through rent receipts, the department matches this claim with the PAN numbers provided in AIS Form and Form-26AS. This is particularly important when the claimed rent is more than Rs 1 lakh annually.
  • Verification of PAN Transactions: All transactions related to PAN are recorded in AIS forms. The department verifies the claimed HRA amount with the transactions recorded under the landlord’s PAN number. Any discrepancies may trigger a notice from the Income Tax Department.
  • Rule for PAN Submission: If an employee pays rent exceeding Rs 1 lakh, they must provide the PAN number of their landlord. The department checks the claimed HRA against the rent amount sent to the landlord’s PAN number.
  • Handling Cash Transactions: If someone claims that the rent was paid in cash, the Income Tax Department may send a notice to the landlord seeking clarification. This can lead to increased tax liability for the landlord, and the taxpayer may face accusations of fraud.
  • Penalties and Consequences: Submitting fake rent receipts can lead to serious consequences, including penalties and accusations of fraud. It is advisable to avoid such practices and comply with tax regulations.
  • Reasons for Fraud: People may engage in such fraudulent practices to save taxes. By inflating the rent amount, individuals try to claim a higher HRA and reduce their taxable income. However, the Income Tax Department’s use of technology and scrutiny aims to catch such fraudulent activities and prevent tax evasion.

In summary, the Income Tax Department in India is actively using technology, including AI, to identify discrepancies in HRA claims based on rent receipts. Taxpayers are advised to comply with the rules and provide accurate information to avoid legal consequences.

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Karnataka Compulsory Gratuity Insurance Rules, 2024

Posted by & filed under Grautity.

The Karnataka Compulsory Gratuity Insurance Rules, 2024, issued by the Government of Karnataka, outline regulations regarding the payment of gratuity to eligible employees. Here’s a summary of the key provisions:

1. Title and Commencement

  • These rules are named the Karnataka Compulsory Gratuity Insurance Rules, 2024.
  • They come into force from the date of publication in the Official Gazette.

2. Definitions

  • Defines various terms such as “Act” (Payment of Gratuity Act, 1972), “employer,” “form,” “nomination,” and “section.”
  • Refers to definitions in related acts like the Insurance Act, 1938, Life Insurance Corporation Act, 1956, etc.

3. Obtaining Insurance for Payment of Gratuity

  • New employers must obtain a valid insurance policy within 30 days from the rules’ applicability.
  • Existing employers must obtain insurance within 60 days from the commencement of the rules.
  • Employers must make timely premium payments and renew policies, informing the Controlling Authority promptly.

4. Recovery of the Amount of Gratuity

  • The Controlling Authority has the power to recover gratuity amounts from the insurance company in case of disputes or as determined by the employer.

5. Registration of the Establishment

  • Employers must register their establishments with the Controlling Authority within 30 days of obtaining insurance.
  • Details of insured employees must be submitted, and updates provided when there are changes.

6. Continuation of Approved Gratuity Fund

  • Employers with an existing approved gratuity fund or those employing 500 or more persons may opt to continue or adopt such arrangements by submitting an application.

7. Incorporation of Gratuity Trust

  • Employers with approved gratuity funds must register the Gratuity Trust with representatives and comply with relevant laws.
  • The trust can be managed privately, by the insurance company, or jointly.
  • The trust must adhere to certain standards and procedures for claiming and releasing gratuity amounts.

8. Compliance with the Provisions of the Act

  • Employers must take measures to fulfill their obligations under the Payment of Gratuity Act, 1972.

The notification is signed by Suma. S, Under Secretary to Government, Labour Department, on behalf of the Governor of Karnataka, and is dated January 10, 2024.

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Minimum Wages in West Bengal: w.e.f 01st January, 2024 to 30th June, 2024

Posted by & filed under Minimum Wages-WestBengal.

Minimum Wages in West Bengal

The circular from the Office of the Labour Commissioner, Government of West Bengal, outlines the minimum rates of wages for employees in the state for the period from January 1, 2024, to June 30, 2024. Here are the key points from the circular:

  1. Scheduled Employments: The minimum rates of wages apply to 30 Scheduled Employments in the state, and the rates have been updated based on Fixation/Revision notifications for each scheduled employment.
  2. Implementing Areas:
    • Zone A: Includes areas under Municipal Corporations, Municipalities, Notified Areas, Development Authorities, and Thermal Power Plant areas, including Township Areas.
    • Zone B: Encompasses the rest of West Bengal.
  3. Calculation of Rates:
    • To determine the daily rate, the monthly rate should be divided by 26 (rounded off to the nearest rupee).
    • To find the weekly rate, the daily rate should be multiplied by 6.
  4. Normal Working Day: A normal working day consists of eight hours of actual work with a minimum half-hour recess, totaling 48 hours of actual work in a week.
  5. Weekly Rest: One day in any seven-day period, as per local convenience, is designated as the day of weekly rest. The minimum rates of wages include wages for the weekly day of rest. Payment for work done on the weekly rest day and beyond normal working hours is at double the ordinary rates.
  6. Protection of Higher Rates: If the existing rates of wages for any employee, based on a contractor, agreement, or other means, are higher than the rates specified in the circular, the higher rates will be protected.
  7. Applicability to Contractors: The minimum rates of wages are applicable to employees employed by contractors.
  8. Rates for Disabled Persons: The minimum rates of wages for disabled persons are the same as those payable to workers of the appropriate category.
  9. Gender Equality: Men and women employees are entitled to the same rates of wages for the same work or work of similar nature.
  10. Enforceability: The minimum rates of wages, along with variable dearness allowance (if any), together constitute the minimum rates of wages enforceable under the Minimum Wages Act, 1948 (11 of 1948).

The circular has been issued with the approval of the Labour Commissioner, West Bengal, as of December 12, 2023.

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Navigating the Indian Compliance Calendar: Embracing 2024 with Commitment

Posted by & filed under Compliance -Calendar.

As we bid farewell to the past year and welcome the promises of the new one, the Indian business landscape gears up for another journey through the compliance maze. The start of 2024 brings with it a fresh perspective and a renewed commitment to adhere to the ever-evolving regulatory requirements. In this blog, we’ll navigate through the Indian compliance calendar for January 2024, ensuring businesses are well-prepared to embrace the challenges and opportunities that lie ahead.

Welcoming the New Year:

Before delving into the specifics of the compliance calendar, let’s take a moment to appreciate the achievements and lessons of the past year. As we step into 2024, it’s essential to approach the compliance landscape with a positive mindset and a commitment to continuous improvement. A new year signifies new opportunities for growth, innovation, and strengthening our business foundations.

January 2024 Compliance Calendar:

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The Assam Minimum Wages Notification (Jun 2023) declared on 5th Dec 2023

Posted by & filed under Minimum Wages -Assam.

Notification Download
the-assam-minimum-wages-notification-jun-2023Download

Class of Employment

Wage Per Day

Wages Per Month

Previous VDA Cumulated

New VDA Per Month

Total Per Month

Total Per Day

Unskilled Workers

₹ 240.00

₹ 7200.00

₹ 2468.74

₹ 131.76

₹ 9800.50

₹ 326.68

Semi-Skilled / Unskilled Supervisory

₹ 280.00

₹ 8400.00

₹ 2837.38

₹ 153.72

₹ 11391.10

₹ 379.70

Skilled Workers / Clerical Workers

₹ 350.00

₹ 10500.00

₹ 3547.20

₹ 192.15

₹ 14239.35

₹ 474.65

Highly Skilled Workers

₹ 450.00

₹ 13500.00

₹ 4560.00

₹ 247.05

₹ 18307.05

₹ 610.24
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ESIC Aadhar Seeding Application due to e-KYC changes by UIDAI.

Posted by & filed under Esic-Circulars.

ESIC Aadhar Seeding Application due to e-KYC changes by UIDAI. The letter provides instructions and updates regarding the process of seeding Aadhar details for insurance persons and their family members. Here’s a summary of the key points in the letter:

  1. Background: The letter refers to previous instructions on Aadhar seeding issued on 25.05.2023 and 31.10.2023.
  2. UIDAI e-KYC Update: UIDAI has updated its e-KYC response, specifically regarding the sharing of the date of birth. If the date of birth in UIDAI is recorded as ‘declared or approximate,’ only the year of birth was being shared on the ESIC Aadhaar Seeding application.
  3. ESIC Portal Update: The ESIC Portal has been updated to allow users to select the date and month (Date/MM) during the Aadhaar seeding process, based on available documentary evidence. When the declared date of birth matches with the details in ESIC records, Aadhar will be seeded. In case of a mismatch, an update IP details request will be generated for approval.
  4. Procedure for Cases with Only Year Visible: In cases where only the year is visible in the date of birth column after seeding Aadhaar details, the person handling Aadhaar seeding will enter the date and month based on Aadhar Card or other documentary evidence. The Aadhar number will be seeded accordingly. Such cases will be marked distinctly on the profile of the insurance person as declared Date of Birth, subject to verification when necessary.
  5. Deleted Blank Cases: All blank cases of Aadhaar mismatch requests from the last 15 days have been deleted from the backend. Field offices are instructed to approach the individuals again to seed their Aadhar numbers in the ESIC portal.
  6. Help Files: The letter mentions that help files containing screenshots of the updated portal are attached for guidance.
  7. Compliance Request: Field offices are requested to ensure strict compliance with these guidelines and expedite the Aadhaar Seeding work.

 If you have any specific questions or need further clarification on any part of the letter, feel free to ask.

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FAQ on the SOP for Inspection of Establishments as per Circular released by EPFO

Posted by & filed under Provident Fund - (Notification -Circulars).

EPFO Archive » Central Government Staff Rules, Circulars and Orders - Govt Staff

Explore the intricacies of EPFO inspections with our detailed breakdown of Circular CAIU/056/V-III/2023/2291. Gain insights into the latest guidelines, FAQs, and essential procedures for seamless compliance.”


Detailed explanation and some specific guidelines for employers, as per the FAQ mentioned in the circular is presented in tabular format:

FAQ Number

Question

Answer and Explanation

Employer’s Action/Consideration

1

Sequence of Periodic Desk Review (PDR)

PDR is conducted in the sequence of oldest to newest registration code establishments. Physical inspection may be assigned in certain cases.

Action: Employers should be prepared for potential PDR and cooperate if their establishment is selected for physical inspection. Ensure that records are in order.

2

Targets for PDR

Field offices must conduct desk reviews of all establishments at least once a year. Specific monthly targets are set.

Action: Employers should be aware of the annual PDR and cooperate with EPFO officials during the process.

3

Nudging Process

Nudging involves reminders to establishments for compliance. Centralized nudging is done for specific cases.

Action: Employers should respond promptly to nudging communications and take corrective actions if discrepancies are noted during PDR.

4

Content of Nudging Communications

Nudging communications highlight observations/discrepancies noted during PDR.

Action: Employers should carefully review nudging communications, understand observations, and take necessary corrective actions.

5

Physical Letters during Nudging

Physical letters sent if email/SMS is undelivered. Letters should not be of the nature of Show Cause Notices.

Action: Employers must ensure accurate contact details in EPFO records to receive electronic communications. Address any concerns raised in physical letters promptly.

6

Handling Closed Establishments

Closed establishments marked “Closed” in Unified Portal after verification of closure proofs. Various steps outlined for closure verification.

Action: If an establishment closes, the employer should provide proof of closure promptly. Cooperate with the closure verification process.

7

Associated Activities during PDR

Mandatory tasks during PDR include data cleaning, updating details, and correction of establishment information.

Action: Employers should ensure accurate and updated information in EPFO records during PDR.

8

Inspections Allocation

Inspections allocated randomly to available Enforcement Officers.

Action: Cooperate with Enforcement Officers during inspections. Ensure all necessary documentation is readily available.

19

PDR in ECR Category

PDR of establishments with assigned physical inspection on SSP to be ensured on priority before the start date of inspection.

Action: If selected for physical inspection, ensure PDR is completed promptly. Cooperate with the Enforcement Officer.

20

Coverage of Establishments not Registered

Guidelines for establishments coverable under the Act but not registered. Initiate contact for registration.

Action: If not registered despite being coverable, cooperate with EPFO officials, and consider registration through Shram Suvidha Portal.

21

Regional Head Role on SSP

Regional Head’s role in assigning inspectors on SSP.

Action: Employers should be aware of the SSP process and cooperate with assigned inspectors during inspections.

Note: The above suggestion is based on our expertise it may vary, and it’s crucial for employers seek legal advice if needed for compliance with EPFO regulations.

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December 2023: A Guide to Compliance Calendar and its Significance

Posted by & filed under Compliance -Calendar.

Navigating December 2023: A Guide to Compliance Calendar and its Significance

Introduction: As we approach the end of 2023, businesses and individuals alike are gearing up for a new wave of statutory changes set to take effect in December. To stay on top of these regulatory shifts, it’s crucial to have a well-organized compliance calendar. In this blog post, we’ll delve into the key statutory updates for December 2023 and explore the importance of compliance in today’s dynamic business environment.

Understanding the Compliance Calendar: A compliance calendar is a dynamic tool that helps businesses and individuals track and manage their regulatory obligations. It serves as a visual representation of statutory deadlines, reporting requirements, and other legal obligations that must be met within a specified timeframe. With the ever-changing landscape of laws and regulations, a compliance calendar becomes indispensable in ensuring that organizations stay on the right side of the law.

Key Statutory Changes for December 2023:

  1. Tax Revisions: December often marks the implementation of new tax laws or revisions to existing ones. Businesses and individuals need to be aware of changes in tax rates, filing deadlines, and any new compliance requirements to avoid penalties and ensure accurate financial reporting.
  2. Employment Regulations: Employment laws can undergo amendments, affecting areas such as minimum wage, overtime rules, or employee benefits. Staying abreast of these changes is crucial to maintain a fair and legally compliant workplace.
  3. Environmental Compliance: Many industries face evolving environmental regulations. December might bring about updates to environmental standards, emission limits, or waste disposal guidelines. Businesses should review and adjust their practices to align with these changes.
  4. Data Protection and Privacy: With the rising importance of data security, updates to data protection laws are common. Understanding and implementing changes to privacy regulations can prevent legal issues and safeguard sensitive information.

The Importance of Compliance:

  1. Legal Consequences: Non-compliance can lead to severe legal consequences, including fines, penalties, and legal actions. Maintaining a compliance calendar helps mitigate these risks by ensuring timely adherence to regulations.
  2. Reputation Management: Being compliant is not only about avoiding legal troubles but also about preserving reputation. Customers, partners, and stakeholders trust organizations that adhere to ethical and legal standards, contributing to long-term success and credibility.
  3. Operational Efficiency: A well-organized compliance calendar streamlines processes, making it easier for organizations to meet their obligations. This, in turn, enhances operational efficiency, reduces the risk of errors, and contributes to overall business effectiveness.
  4. Strategic Decision-Making: Compliance is intertwined with strategic decision-making. By staying informed about regulatory changes, businesses can make informed choices that align with current legal requirements and industry best practices.

Conclusion: As we approach December 2023, it’s imperative for businesses and individuals to embrace a proactive approach to compliance. A carefully curated compliance calendar not only helps navigate the upcoming statutory changes but also fosters a culture of responsibility and accountability. By understanding the significance of compliance, organizations can position themselves for success in an ever-evolving regulatory landscape.

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