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

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


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.


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 :-

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.

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.

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.