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 ).

Compliance Adminstration Services

Statutory compliance administration is very crucial today, because the tax and finance world is changing at a rapid pace. Government is continually changing the laws and creating new rules very frequently. Hence, staying updated on constantly changing tax laws and regulations, meeting strict government deadlines, and avoiding costly fines and penalties can be an administrative burden for a company of any size. 

Statutory Compliance Management by Mynd Solutions

Mynd has a strong partner network to ensure that global statutory compliance services are provided in line with the local rules and regulations. We specialize in statutory compliance management and help our clients in complying with the local laws and procedures and maintain regular compliance to prevent any non-compliance issues thereby streamlining business processes that adds up tangible and intangible financial benefits for our clients. Mynd provided a single point of contact for India compliances and also for global compliances.

To ensure that the local requirements are fully compliant, Mynd provides the following:

Mynd Prepares and submits monthly/quarterly/yearly payroll related documents to various government authorities under the required name as per local laws. Wherever applicable, Mynd handles monthly / quarterly / yearly tax computations and prepares relevant statutory reports. Wherever it's applicable, an ESS (Employee Self Service) panel is provided for employee’s tax declaration purpose. Mynd Prepares and communicates year end submission guidelines document after confirmation with Client.

Mynd’s retirement benefits platform provides a one stop solution to our clients, whether they are with the Government run RPFC or they have their own trust. The entire process runs on a PF platform which brings transparency and accountability to the entire process. Mynd helps companies address the need to mitigate pension expense volatility and enhance investment performance by utilizing sophisticated asset allocation, hedging, risk management strategies and every other compliance management aspects. We utilize a strategic approach to help clients manage all aspects of their employee’s retrials benefits.

The spectrum of Compliance Management Services we offer includes:

• Provision of tangible and in-tangible benefits by setting up an in-house Fund to Client’s organization and its employees
• Drafting of trust deed and rules including all legal activities in this regard
• Handling complex activities related to obtaining approvals from Income Tax Department, Provident Fund Office and any other department
• Day to day administration services for Fund including accounting, legal and transaction
• Processing Services with latest automation techniques
• Transparent and IT enabled Help Desk Services for Members

Finance and Accounts Outsourcing @ Mynd

Financial Services Outsourcing

When your business increases, managing your global clients can become a complicated task. When you start your business, it is important to know about regulatory framework, which is a crucial aspect to run your business. On the other end managing your tax and compliances within complex rules and regulation can drain out your precious time, money and resources. It is actually the degree to which the taxpayer complies or fails with the tax rules of his country. This is by filing a return, declaring income and paying the tax on time.

With the help of travel and expense processing, companies can significantly reduce the cost of processing and improve the speed of paying bills. It is truly an integrated solution which is easy, quick and affordable to automate their entire travel and expense management.


In this way you can streamline your spend control which will enable you to reap significant cost savings on large amounts of your spending. At the same time you will be able to speed up your reimbursement. All these are possible when you employ an effective process that is faster, cheaper and improves employee satisfaction. Here are some benefits of travel and expense management which are effective control that reduces the cost of expense claims and gains visibility.

Accounts receivable outsourcing is done to eliminate the headache of credit agreement or contract. It improves quality, increases control, boosts productivity and lowers cost. It is the best financial solution for restaurants and hospitality industry, real estate and property management, manufacturing and distribution. In return outsourcing will give you higher productivity, abundance of highly qualified resources, rapid deployment, skilled and table workforce including capacity expansion without any capital investment.

Any company whether large or small has a list of statutory compliances which means of or related to statutes. In literal sense it means rules and regulation and compliance means just to adhere to or comply with. For companies it means that they should follow laws on a particular issue. There are other businesses which are out of statutory compliance because the cost of following the rule is too high or the consequence is too small to get worried.