Checklist and documents required related to Employee

Documents required related to Employee

1.  Personal Files:
                            Application Form
                            Doctors Certificate/Age proof
                            Fittness Certificate
                            Form-F for Gratuity Nomination
                            Form-25 for Nomination for EL With Photo
                            Induction Form
                            Increment Details
                            Training Details:Fire / First aid etc
                            Promotion/ Demotion Letter
                            Transfer Letter.
                            Appointment Letter.
                            Confirmation Letter.2.  Employee's Hand Book
3.  Employee Leave Book
4. Identity Card issue Register
5. Employee Interview Register
6. Punching or Bio Matrix Card Register
7. Attendance Record
8. Punching Details
9. OverTime Record  & Punching Details
10. Overtime Approval 
11. Approval for Man Power
12. Muster Register.
13 .Payment of Bonus (Form-C )
14. Payment of Minimum Wages.
15. Accidents injury Registers & Intimation.
16. Leave Register. (Form-18)
17. Annual Census.
18. Register of Final Settlement.
19. Register for Payment of Gratuity.
20. Register of Penalties & Fines. (Form-21)
21.  Register for Advances (Form-22)
22. Adult Register
23. Employment Card (Form-14)
24. Register of Workmen (Form-13)
25. Annual & Half Yearly Returns
26. Register of ESI & PF allottment Number
27. Acknowledement-Wage issue Slip
28. Register for Payment of Incentives, Attandance Bonus etc
29. Esi Registration Certificate for Establishment.
30. EPF Registration Certificate for Establishment.
31. Details of Children enrolled in Creech.
32. Avoid Overlaping of Shifts.
33. Esi & PF Challan Payments
34  Declaration Form & Nomiantion Form
35. Voulantary Declaration from Each Employee for Work on Sunday or holiday
36.Comp off Intimation Letter to Inspector of Factories.
37. Worker Training Record

Checklist / documents related to employee benefits

1.  Esi Benefits Such as Maternity Leave/ESI Leave , Treatment  &  Payment Wages to Workers & Dependents Medical Treatment
2.  PF -Pension & Provident Fund to Employees Securing retirement of Employees or their Dependents.
3.  Payment of Gratuity Completed Continous 5 years of Service , or Person Permanantely disabled or Expired than they will get Benefits till 58 years.
4.  Payment of Leave Encashment to workers for unavialed Leave accumulated to the extent of 30 days. 
5.  Payment of Bonus to employees 8.33% upto 20% of Basic wages & Minimum of Rs.100/- 
6.  Payment of Incentives & Attandance bonus for Increasing effeciency of hourly production & Reduce absentisem
7.  Employer Contribution to ESI @4.75%  & PF 12%
8.  Maternity benefit non esi covered employees.

Procedure to Convert A Public Company Into Private Company

The Companies Act, 2013 was expected to simplify the provisions but on the contrary it brought lot of restriction on doing business. However it is proposed by Ministry of Corporate Affairs to provide various Exemptions to Private Limited Companies. If it approve there will be lot of relaxation to private companies. To take that future advantage many public companies are converting themselves into Private Companies.

REGULATORY REQUIREMENT

Section 13 and section 14 of the Companies Act. 2013 and Rule 33 of Companies (Incorporation) Rules 2014 contain provisions relating to conversion of public company into private Company.

As per section 13 and section 14 of the Companies Act 2013 read with Rule 33 of Companies (Incorporation) Rules 2014. A public company can be converted into private company only after obtaining its shareholder approval by way of passing of special resolution in general meeting .

Second proviso to sub section (1) of section 14 provides that any alteration having the effect of conversion of a public company into a private company shall not take effect except with the approval of the Tribunal.

MCA vide its circular No. 18 dated 11^th June 2014 has clarified that as second proviso to sub section (1) of section 14 of the Companies Act 2013 has not yet notified therefore corresponding provisions of Companies Act 1956 i.e. “Sub section (2A) of section 31” shall remain in force. The Central government has delegated such power to Registrar of Companies vide notification No,. 1538(E) dated 10th July 2012 and this delegation power remains in force.

Therefore we just need to file following E-form with Registrar of Companies to convert public company into private company;

1. MGT-14 (For registering special resolution)
2. INC-27 (Application for Conversion of Public Company into Private Company)

STEP INVOLVED IN CONVERTING PUBLIC COMPANY TO PRIVATE

Sr. No.	Steps	Actions
1	Board Meeting	To discuss and approve proposal of conversion of the Public company into a Private company. To grant authority to director to take necessary action. To decide place, venue, time of general Meeting & to approve notice calling General Meeting
2	Notice of General meeting	Give 21 days’ clear notice for the General Meeting proposing the Special Resolutions with suitable Explanatory Statement. Section 101 & Section 102 of the Companies Act 2013
3	Filing of Special Resolution with ROC in E-form MGT-14	File Form No. MGT-14 within 30 days of passing of the resolution Attachments Notice calling General Meeting CTC of the Special resolution Altered AOA Altered MOA
4	Filing of INC-27 with ROC	File Form INC-27 with ROC after approval of MGT-14.Attachments Minutes of the General Meeting: Notice calling General Meeting Altered AOA

Total Deduction Allowed u/s 80C, 80CCC and 80CCD (A.Y.2015-16)

The most common questions asked by every readers of LessMyTax that how much deduction is allowed in aggregate under section 80C, 80CCC and 80CCD? It is common because every year the limit has been changed. So there may be confusion in the mind of the people.These deductions are not allowable against any income by way of winning from lotteries, crossword puzzles, card games or other games.

As you all know that a number of deductions under Chapter VI-A i.e Section 80C to 80U are allowed from the gross total income. So we will not talk here about the each and every deduction. Each deduction is allowed as per the parameters or rules related to that particular section.

We will talk here only about the total deduction or limit of deduction allowed under section 80C individual or combined (80C, 80CCC and 80CCD).

The person who want to know more about deduction under section 80C, visit the following link.

Simple Guide of Deduction Under Section 80C Explained

Deduction under section 80CCC: The deduction is allowed only to individual assesee for the amount paid or deposited during the previous year out of his taxable income, to the annuity plan of Life Insurance Corportation of India (e.g. Jevan Suraksha) or annuity plan of other insurance companies for receiving pension from the fund referred in the section 10 (23AAB). The maximum deduction is allowed up to Rs. 1,00,000 (A.Y. 2014-15) Rs. 1,50,000 (A.Y. 2015-16).

Deduction under section 80CCD is applicable in respect of contribution to Pension Scheme of Central Government. The amount of deduction in respect of assessee’s contribution shall not exceed Rs. 1,00,000.

These deductions are allowed to certain specified tax-payers, in relation to certain specified incomes or expenditure or investment of donation. These deduction have to be made from the gross total income, in order to arrive at net income/taxable income.

So the aggregate amount of deduction u/s 80C, 80CCC and 80CCD is subject to an over limit of Rs. 1,50,000 [Rs. 1,00,000 for A.Y. 2014-15]

However, deduction u/s 80CCD in respect of contribution by Central Govt./ employer to the pension scheme shall be available in addition to this limit.

What is Form 16B ? FAQ on Form 16B

1. What is Form 16B?

Form 16B is the TDS certificate to be issued by the deductor (purchaser/buyer of immovable property) to the deductee (Seller of immovable property) in respect of the taxes deducted on the sale of immovable property and deposited into the Government Account.

2. Who can download Form 16B?

Only a purchaser/buyer, who is registered on TRACES as tax-payer can download Form 16B, using unique acknowledgment number generated while filing of Form 26QB (statement cum challan form).

3. From where will I get the Form 16B?

Buyer/ Purchaser of immovable property can download Form 16B after registering on TRACES as Tax Payer.

4. What is the procedure to generate the Form 16B?

Form 16B shall be generated by TDS-CPC on processing the Form 26QB (statement cm challan form) filed by buyer. Following are the steps to generate form 16B:

Buyer has to register on TRACES as Taxpayer.

Login to TRACES as tax payer and submit download request for Form 16B under ‘Downloads’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

Form 16B will be generated in PDF file and password to open this file is date of birth of the buyer in ddmmyyyy format i.e. if the date of birth is 4th October 1976, password would be 04101976.

5. While downloading Form 16B from TRACES, Is there any restriction on the number of request that user can place?

There is no restriction on the number of requests that buyer/purchaser can place simultaneously for different Forms 16B pertaining to different sellers.

6. Can I download Form 16B without acknowledgement number?

No.

7. I have lost 9 digit alphanumeric acknowledge number which was generated while filing form 26QB. Now from where can I get acknowledgement number to download form 16B?

It is advised to note down the acknowledgment number. However, in case if it is lost, the acknowledgement number is also be reflected in Part ‘F’ of Form 26AS of the buyer and Part ‘A2′ of Form 26AS of the seller.

8. Is there any provision in Income tax act 1961 or Income tax Rules 1962 format for Form16 B?

Form 16B is issued as per the provisions of Rule 31(1) of Income tax Rules 1962.

9. I have deducted TDS on property along with education cess. However, Only TDS on property amount is reflecting in Form 16B and not the amount of education cess. Why?

No surcharge and education cess is applicable while deducting tax on sale of property. Deductor/buyer is required to deduct only income-tax @1% on entire transaction amount. If surcharge and education cess is deducted, same will not reflect in Form 16B.

Difference between Not for Profit and Profit Organizations

Not for profit organisation and profit organisations both provide some goods and services to public. Both can be clubs, hospitals, libraries, schools and other organisation. But still there are lots of differences between them which we can show in following points.

Basis of Difference		Not for Profit  Organizations		Profit Organizations
1. Aim		Main aim of such organisation is to do the welfare of society.		Main aim of such organisations is to earn the money.
2. Capital Vs  Funds		These organisation does not invest capital but invest funds and records such funds in the balance sheet in the form of donation funds, welfare funds etc.		Such organisation invest money in the form of capital and they are interested to get return on it.
3. Financial Statements		Main financial statements of these organisations are a) Receipts and payments account b) Income and expenditure account c) Balance Sheet		Main financial statement of these organisations are a) Manufacturing account b) Trading and profit and loss account c) Balance Sheet d) Cash flow statement
4. Performance		Performance of such organisation is calculated the number of quality welfare activities to the society. For example, a not for organisation provides 10000 free dresses to poor community. So, such organisation will show only surplus in the income and expenditure account, if donation and other earning is more than its expenditure.		Such organisations show their performance in the form of earned net profit in its income and expenditure account.
5. Dividend		Such organisations do not distribute their surplus to members in the form of dividend.		Such organisations distribute their net profit among members in the form of dividend.

Deduction U/S 80DD: Medical Treatment of Handicapped Dependents

As we have discussed earlier about deduction under section 80C, 80D, 80CCC, 80CCD and other deduction. Here, we’ll talk about deduction under section 80DD related to medical treatment etc and deposit made for the maintenance of handicapped dependents. You should read the complete article to know the latest provision related to A.Y. 2015-16 and A.Y.2014-15. Who is allowed to get deduction under section 80DD: Any individual or HUF can claim the deduction under section 80DD under the following conditions.

Conditions to Claim Deduction: The following conditions must be satisfied to claim the deduction u/s 80DD.

1)   If you have any one or more handicapped dependents and you incurred any expenditure related to his/her medical treatment, training, and rehabilitation including nursing.

2)   If you have deposited amount for the benefit of person with disability to get insurance in the scheme of the Life Insurance Corpn or  other insurance company or the Unit Trust of India.

Amount of Deduction: As per the provision of section 80DD the amount is allowed up to Rs.50,000 in aggregate. The deduction can be claimed up to Rs.1,00,000 if the person with sever disability.

Important Other Conditions

As the deduction is allowed only for dependent handicapped person. So the amount deposited in any approved insurance scheme is purely for the benefit of the person with disability.  So you have to clear one thing that person with disability should have nominee or any other person or the trust to receive the payment under the scheme for the benefit of the handicapped dependent and in the event of the death the amount of annuity or any lump-sum should be paid for the benefit of the handicapped person.

In case the handicapped dependent predeceases the sub-scriber assesse, the amount for which deduction has been claimed shall be deemed to be the income of the assesse for the previous year in which such amount is received.

Some Important Provisions Related to Deduction under section 80DD

• According to circular no.702 dated 3^rd April, 2015, the deduction is allowable in full if the conditions mentioned fulfilled.
• Another important circular no. 775 dated 26^th March, 1999, the employee need only to furnish a medical certificate from a Govt. Hospital and a declaration in writing duly signed certifying the actual amount of expenditure on account of medical treatment etc of the handicapped dependent and receipt for the amount paid or deposited in the scheme of LIC/UTI then the deduction shall be allowable. Therefore DDOs may not insist upon production of vouchers or any bills by the employees.

Who is dependent? 

In the case of individual

• Individual himself
• Spouse
• Children
• Parents
• Brothers
• Sisters

In the case of HUF

• Members

You must note here that the dependent should wholly or mainly dependent to you and has not claimed any deduction u/s 80U in computation of his income.

What is Disability?

If the disability is over 40% as per the Person with Disability (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 then it is treated under the section 80DD.

What is Severe Disability?

If the person disability is over 80% as per the Disability Act, 1995 then it is treated as Severe Disability under section 80DD.

How to Prepare Statement of Affairs

At the time of liquidation of company, a very important statement is made for showing estimated realizable value and liabilities expected to rank. That statement is called statement of affairs. To prepare statement of affairs is also important because by making statement of affairs we can know what amount of surplus or deficiency in balance. Company act 1956 has given its format. Different items are estimated as per different lists. Now, we are preparing and explaining statement of affairs according to list of assets and liabilities. You should remember statement of affairs all item thoroughly. Difference between the estimated value of assets and liabilities will be estimated value of surplus or deficiency.

1. List A : Assets not specifically pledged 

First of all, we make the list of assets which are not on pledge. you should not take any loan by giving these assets as security. We write these assets' estimated realizable value instead of book value because creditors are interested to know what amount will they receive after selling of these assets in market. Value of call in area will be assets under list A.In these assets, we can include

i) Balance at bank

ii)) Cash in hand

iii) Marketable Securities

iv) Bills Receivable

v) Trade Debtors

vi) Loan and Advance

vii) Unpaid calls

viii) Stock in trade

ix) Freehold property

x) Leasehold property

xi) Plant and property

xii) Furniture Fittings, Utensils etc

xiii) Investment other than marketable securities 

xiv ) Livestock

xv) Other property

2. List B : Assets Specifically Pledged 

In list B, we include estimated realizable value of all the assets specially mortgaged, pledged, or otherwise given as security. We also classify these pledged assets into under possession of company and not under the possession of company. We will calculate surplus or deficiency after deducting these assets' estimated realizable value from amount of secured loan and then adjusted it in estimated realizable value of  assets which are not pledged.




3. List C : Preferential Creditors

Now, we deduct preference creditors of list C from the total of List A and List B amount

4. List D : Debenture holders Secured by a floating charges

The balance after deducting list c preference creditors is used for deducting the amount of debentures secured by a floating charges and its payable interest.

5. List E : Unsecured Creditors

The balance of assets after deducting list d debenture holders amount   is used for deducting the amount of unsecured creditors.

6. List F : Preference Shares 

In this list, we include all the payable amount of preference shares which is deducted from realizable asset's balance after deducting list E's liability.

7. List G : Equity Shares 

In this list, we include all the payable amount of  equity shareholders  which is deducted from realizable asset's balance after deducting List F's liability. For calculating equity shares exact value, we deduct irrecoverable unpaid calls.

8. List H : Surplus or Deficiency 

Balance will be surplus or deficiency which will be included in list H