Category: Uncategorized

How to Easily Open Your Employee Provident Fund (EPF) Account

Post author By Infinity Services
Post date September 14, 2024
2 Comments on How to Easily Open Your Employee Provident Fund (EPF) Account

The Process of Opening an Employee Provident Fund (EPF) Account

The Employee Provident Fund (EPF) is a valuable employee benefit provided by employers to support employees after retirement. In order to offer EPF to employees, employers need to be registered with the Employees’ Provident Fund Organisation (EPFO). But how does one go about opening an EPF account online? If you’re unsure how to open a PF account for employees or how to initiate EPF account registration, this guide will walk you through the process.

EPF Registration Applicability for Employers

The Employee Provident Fund (EPF) Scheme is regulated by the EPFO under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for:

Factories engaged in any industry with 20 or more employees.
Any establishment employing 20 or more individuals, or specific establishments as notified by the Central Government.

Additionally, establishments with fewer than 20 employees may be required to register based on a notice from the Central Government or voluntarily opt for registration if both the employer and a majority of employees agree. Once the Central PF Commissioner approves the application, the provisions of the Act are applied to the establishment.

Even smaller establishments may voluntarily register for EPF. Every eligible employee will be entitled to EPF from the date of their employment. Employers are responsible for deducting and contributing to the EPF on behalf of their employees.

Contribution Rates

Establishments with 20 or more employees: 12% of basic wages + dearness allowance + retaining allowance, shared equally between employer and employee.
Establishments with less than 20 employees: EPF deduction at a rate of 10%.

Documents Required for EPF Registration

Depending on the type of establishment, different documents are required for EPF registration:

Sole Proprietorship: Owner’s name, PAN, driving license/passport/voter ID, address proof, and phone number.
Society/Trust: Incorporation certificate, MOA & by-laws, PAN, and identity proofs of president/members.
Partnerships: Firm’s registration certificate, partnership deed, identity/address proofs of all partners.
LLP/Company: Incorporation certificate, list of directors/partners, DSC of directors, MOA & AOA, address proof.
Employees: Employee details including name, father’s name, joining date, birthdate, mobile number, postal address, salary grade, identity proof (Aadhaar/PAN), bank details, and more.
Other Establishments: First sale and purchase bill, GST registration, employee records, wage/salary register, balance sheets, and cancelled cheque.

Steps for EPF Registration

To register for EPF online, follow these steps:

Step 1: Register Your Establishment: Visit the EPFO website and select ‘Establishment Registration’. This step will direct you to a downloadable ‘Instruction Manual’ which you should review before proceeding.
Step 2: Log In or Register If you’re already registered, simply log in with your UAN and password. For new registrations, fill out the required employer information and proceed with the Digital Signature Certificate (DSC) registration, which is mandatory for a fresh EPF account registration.
Step 3: Enter Employer Details: Accurately enter the employer’s details as registered with the Income Tax Department. Provide the PAN of the employer, and once verified, online registration will be enabled.
Step 4: Choose a Username: Select an available username, followed by setting up a hint question and answer for security purposes.
Step 5: Verify Mobile Number and Email Enter the CAPTCHA code and click on ‘Get PIN’. You will receive a PIN on the registered mobile number. Enter the PIN, tick the declaration box, and submit. You will also receive an email verification link. Click the link to complete your registration.

Once all these steps are completed, your EPF registration application will be submitted to the EPFO for approval.

Conclusion

Opening an EPF account online is a simple and efficient process if you follow the right steps and have the necessary documents in place. Employers must ensure they are registered and compliant with EPFO regulations to provide this crucial retirement benefit to their employees.

If you need further assistance in opening an EPF account, feel free to reach out or Contact Us

Uncategorized

When deciding between the new regime and the old regime, which one should you select? (Old Regime Vs new Regime)

Income Tax Regime

Opting for the new income tax regime in India requires comprehending the fundamental differences between the old and new regimes and evaluating which one aligns more favourably with your financial situation. Presented below is an in-depth manual to assist you in making an accurate decision:

Understanding both the Old and New Regimes

Old Regime

A variety of deductions and exemptions are available to taxpayers under this system. This includes the House Rent Allowance (HRA), the Leave Travel Allowance (LTA), the standard deduction, deductions under Section 80C (investment in PF, PPF, life insurance, etc.), deductions under Section 80D (medical insurance), and plenty other deductions and exemptions.

New Regime

However, the majority of deductions and exemptions are removed under the new tax system, which results in lowered tax rates. With a few exceptions, taxpayers who fall under this system cannot take advantage of the deductions that were indicated above. These exceptions are contributions to the National Pension System (NPS), the standard deduction, and interest on house loans for self-occupied property.

Determine the amount of tax liability

Calculate your tax burden under both regimes by using an income tax calculator or consulting with a tax professional. The calculation will be based on your income, deductions, and exemptions.

Income tax calculator

You may determine which of the two regimes delivers a lower tax burden by comparing the tax that was payable under the previous system to the tax that is due under the new regime.

Think about your current financial situation

– Conduct an examination of your life goals, investing tactics, and sources of income. If you heavily rely on deductions and exemptions to lower your tax payment, it is likely that the prior system would be more advantageous for you. If you value simplicity and are satisfied with the trade-off of lower tax rates but fewer deductions, then it may be a more favourable choice for you.

Analyse the Coming Alterations

Consider the potential alterations that may occur in your income and current financial situation in the future. For instance, if you expect a considerable rise in your earnings or if you want to make major investments that qualify for deductions, the prior approach could lead to more favourable tax consequences.

Alternatively, if you expect a consistent income that does not involve significant deductions, the reduced tax rates under the new tax system may result in a drop in the amount of money you save.

Evaluate the Effects on Investments

Conduct an analysis to determine the alignment between your current investments and your future investment plans with each regime. Under the previous system, specific investments may have qualified for tax benefits. However, under the current system, this is no longer applicable.
When choosing a government system, it is crucial to evaluate the impact of taxes on long-term assets, such as the profits made from selling stocks or property.

Chat matters thoroughly with a tax advisor

If you are uncertain about which regime to select, it is advisable that you seek the counsel of a financial adviser or accounting specialist. Similarly, they have the capability to provide customised guidance that is specifically designed to align with your specific financial resources and objectives.

Write us infinityservices2018@gmail.com

File Form 10-IE

– To take advantage of the changed tax system, you must file Form 10-IE along with your income tax return to declare your decision for the current fiscal year.

It is crucial to consider that choosing between the old and new tax regimes depends on various factors that are unique to your financial situation. Therefore, it is vital to carefully evaluate your options.

What is Form 10IE and its deadlines? Who will file form 10IE ?

Post author By Infinity Services
Post date May 14, 2024
No Comments on What is Form 10IE and its deadlines? Who will file form 10IE ?

Prior to submitting your income tax return (ITR), it is necessary to submit Form 10IE if you wish to choose the new tax system. The new tax system, which was introduced in the Union Budget 2020, offers reduced tax rates. However, it does not allow for most of the deductions and tax benefits that were available in the former tax regime. The following are the main highlights:

1. Purpose of Form 10IE: Form 10IE is utilised to choose whether to participate or not in the new tax regime. To opt for the new tax regime, you are required to inform the income tax department by submitting Form 10IE.

2. Filing Deadline: Form 10IE must be submitted prior to filing your income tax return for the corresponding assessment year. Upon submission of Form 10IE, a 15-digit acknowledgement number will be created. In order to proceed with your ITR filing under the new tax regime, it is imperative that you provide the acknowledgement number.

3. Who needs to file : Individuals or Hindu Undivided Families (HUFs) that have business or professional income are required to file Form 10IE if they want to pay income tax under the new tax regime. Individuals who do not earn income from a business or profession can easily choose the new tax regime in the Income Tax Return (ITR) form without the requirement of filing Form 10IE. Form 10IE is only required to be submitted by individuals who file ITR-3 and ITR-4.

4. Deadline: Individuals and HUFs who are not required to have their accounts audited must file Form 10IE on or before the deadline for filing the income tax return (ITR) for the relevant assessment year¹².

Please note that you must make and submit your decision between the old and new tax system using Form 10IE before filing your income tax return. If you intend to choose the previous tax regime instead of the current default tax regime when filing for the fiscal year 2023-24, it is necessary to submit Form 10IEA prior to filing your Income Tax Return (ITR).

Tags AY2024-25, form10ie, incometax, new tax regime

Income tax Uncategorized

Income Tax Audit under Section 44AB – Criteria, Audit Report, Penalty

Post author By Infinity Services
Post date July 30, 2023
No Comments on Income Tax Audit under Section 44AB – Criteria, Audit Report, Penalty

In India, an income tax audit is conducted under Section 44AB of the Income Tax Act, 1961. It is a formal examination of a taxpayer’s financial records and tax return by a chartered accountant (CA) or a tax auditor to ensure compliance with the provisions of the Income Tax Act. Income tax audits in India are applicable to certain categories of taxpayers meeting specific criteria.

Key Points about Income Tax Audit in India:

1. Mandatory Audit Threshold

As per Section 44AB, the following categories of taxpayers are required to undergo a tax audit if their total income in a financial year exceeds the specified threshold:

a. Businesses: Any person carrying on a business with total sales, turnover, or gross receipts exceeding Rs 1 crore in a financial year (Rs 2 crore from FY 2020-21 onwards).

b. Professionals: Any professional (e.g., doctors, lawyers, architects) with gross receipts exceeding Rs 50 lakhs in a financial year.

c. Presumptive Taxation Scheme: Taxpayers opting for the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE, and having income lower than the deemed profits and gains.

2. Appointment of Tax Auditor

The taxpayer subject to tax audit needs to appoint a qualified chartered accountant as a tax auditor. The tax auditor will conduct the audit and provide an audit report in the prescribed format (Form 3CA/3CB and Form 3CD).

Audit Process: During the tax audit, the tax auditor examines the taxpayer’s books of accounts, financial statements, supporting documents, and other relevant records to ensure the accuracy and compliance of the tax return.
Due Date for Filing Audit Report: The audit report along with the income tax return must be filed by the due date for filing income tax returns, which is usually September 30th of the assessment year (i.e., the year following the financial year).
Consequences of Non-Compliance: Failure to comply with the tax audit requirements can lead to penalties under Section 271B. A penalty of 0.5% of the total sales, turnover, or gross receipts, subject to a maximum of Rs 1,50,000, can be imposed.

It’s important for taxpayers meeting the audit criteria to ensure timely compliance with the tax audit requirements to avoid penalties and other consequences. Consulting with a qualified chartered accountant or tax consultant can help in the smooth conduct of the tax audit and proper filing of the audit report.

Tags account, accountant, INCOME TAX, income tax audit, tax, tax return

GST Uncategorized

April GST collections at new high despite rate rationalisation in December

Post author By Infinity Services
Post date March 19, 2022
1 Comment on April GST collections at new high despite rate rationalisation in December

GST(Goods and Services Tax)

For the third time in four months, GST (goods and services tax) collection surpassed Rs 1 trillion in April, setting a new record high. The mop-up increased by 10% from the previous year.The finance ministry reported a gross collection of Rs 1.13 trillion for the month. A surge in collection was noted notwithstanding the most recent rate rationalization in December.The CGST (central GST) made up Rs 21,163 crore of the total collected, followed by the SGST (state GST), Rs 28,801 crore, the IGST (integrated GST), which made up Rs 54,733 crore (including Rs 23,289 crore on import), and the cess, which made up Rs 9,168 crore (including Rs 1,053 crore on import).

CGST

The CGST was Rs. 47,533 crore and the SGST was Rs. 50,776 crore after the IGST and the remaining IGST were provisionally settled in a 50:50 ratio between the Center and states. The Union Budget’s CGST objective for 2019–20 is Rs 6.1 trillion.”The April collection shows that the tax base is gradually expanding, and that effective data mining and e-way bills are helping to stabilize the GST. The last date for claiming credit for 2017–18 sales overlaps with GST filings for March, therefore businesses may have pushed their vendors to declare sales of that year as well, according to Pratik Jain, partner at consultant PwC India. He believed that going forward, the monthly collection might be expected to routinely exceed Rs 1 trillion.

GSTN

Tax evasion could get tougher with the GST Network (GSTN, the levy’s information technology backbone) and the income-tax department getting into a formal understanding to facilitate the exchange of data.The total number of GSTR-3B or summary returns filed for March up to April 30 was 7.2 million. April GST collections at new high despite rate rationalisation in December M S Mani, partner at consultants Deloitte India, said if the collection trend continued, the target for 2019-20 would be achieved without resorting to other measures. “An increase of over 16 per cent on the annual average does indicate GST revenues have now stabilised,” he said.

In its December 2018 meeting, the GST Council cut rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy. Last July, the tax on small screen TVs, refrigerators and washing machines was cut to 18 per cent from 28 per cent. In November 2017, the rates for 178 items, including detergents, shampoos and beauty products, were reduced from 28 per cent to 18 per cent. “The increase in GST collection, despite rate rationalisation, is a welcome upshot for Indian economy. The major reason could be reconciliation of returns and ledgers at the end of financial year 2018-19,” said Vishal Raheja, deputy general manager, Taxmann. Another reason could be computation of tax liability due to filing of annual returns for financial year 2017-18, where the due date is end-June 2019, he added.

The Business Standard, 2nd May 2019

Tags central GST, CGST, GST Network, GST(Goods and Services Tax), GSTN, integrated GST, SGST, state GST

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