Compliance News @ Mynd: Amendment in Section-192 A of the IT Act

Please find below the summary of the circular detailing the amendments issued by office of the Central Provident Fund Commissioner on applicability of changes in Finance Act 2015 ( insertion of section 192A regarding the taxation on withdrawal of PF Accumulations). Provisions of the said circular shall take effect from 1^st June 2015. The gist of the circular is being given here under-:

1.   Hither to fore no income tax was deducted on the PF accumulations refunded by the PF authorities on the members leaving employment of their employers.

2.   

      Consequent upon amendments carried out through the Finance Act 2015, effective from 1^st June 2015, Income tax will be deducted by the PF Authorities at the time of payment of PF accumulations to the members in the following cases-;

    Where the payment of accumulated PF balance is more than or equal to Rs. 30,000/-, with service less than five years TDS will be deducted  @ 10% provided PAN is submitted but where the members fails to submit the PAN the TDS will be deducted @ maximum marginal rate i.e. 34.608%.

3.    TDS shall not be deducted in the following cases-:

·    Transfer of PF from one account to another PF account.

·    Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.

·   If employee withdraws PF after a period of 5 years of continuous service , including service with former employer.

·     If PF payment is less than Rs 30,000/- but the member has rendered service of less than 5 years.

·    If employee withdraws amount more than or equal to Rs. 30, 000/-, with service less than 5 years but submits Form 15G/15H along with their PAN.

·     Form 15G and 15H may not be accepted if amount of withdrawal individual and senior citizen (60 years and above) is Rs. 2, 50,000/- and Rs. 3,00,000/- respectively. For format for Form 15G/15 H please refer attached document.

 Form 15H is for senior citizens ( 60 and above) while Form 15 G is for individuals having no taxable income.

Note: The provisions of the circular will not apply to PF Trust of relaxed/exempted establishments to whom provisions as contended Rule 8 ,fourth schedule, Part A- Recognised Provident Funds shall continue to apply.(Extracts already enclosed with the attached circular ).

HR Transaction Services by Mynd

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Employee Lifecycle Management

Mynd has been implementing HR shared services that standardize and centralize the employee life cycle processes like Onboarding, Employee Transfer, Confirmation, Separation Management and HR Helpdesk. Mynd also manages end to end travel and expense claim processing thus ensuring that we are there to support each HR related transaction requirements.

Onboarding Management

The first days and weeks on the job for new employees are critical to their ability to fit in and become as productive as possible, as soon as possible. Onboarding Management ensures that Mynd takes care of all pre and post joining activities of new employees. and deliver the best first few days experience to the new employees joining your organisation. The services include document management, Induction management, employee profile creation on client system or Mynd systems, and coordination for all administration activities such as asset allocation etc.

Employee Database Management

As part of Human Resource outsourcing offering, Mynd also provides the centralized employee database management. A team of professionals trained on different HR systems help in keeping all your employee records up to date. All our Human Resource Outsourcing offerings are supported by weekly and monthly HR Dashboard and analytics which provide meaningful insights to the clients for taking informed decisions.

Employee Movements

Mynd can also manage Employee Transfers and Promotions within any client organisation. This shall include monitoring such transfers, updating the relevant data in the system and keeping a track of the compensation details. Mynd shall also provide an online platform for tracking these movements where required

Separation management

Separation or exit management in itself is a combination of complex sub processes, like No dues clearance, full and final settlement etc. Our team helps you manage all these processes in a timely and hassle-free manner, removing the pain of handling multiple transactions.

HR Helpdesk

Mynd offers a robust HR Helpdesk to manage your employee query providing multiple ways to interact with the employees – web, email and phone, our team of HR process experts provide the best possible solution to all employee queries. A toll free number can also be provided for the client HR helpdesk

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