aavanacorporatesolutionprivatelimitedblog

  The employee provident fund is a popular investment scheme for people working in the private sector. This scheme has many other added benefits apart from tax savings. Read through the benefits of the Employee Provident Fund Scheme Tax-free – The funds in your EPF account are tax-free. If you wish to withdraw your EPF money at the time of maturity, the amount is free of tax. However, you will be taxable if you withdraw the amount before 5 years of continuous service. Long-term investment – This provides financial security. The scheme encourages its members to refrain from withdrawing their funds before maturity. Pension Scheme – 8.33% out of the 12% contribution of the employer is towards the pension scheme. Hence a member can also benefit from the pension plan available. Easily accessible –   With the linking of Aadhar to the UAN, a member can transfer his/her PF funds during the transfer of jobs automatically by submitting Form 13. Insurance benefits – If there is an absence of grou

  EPF is generally a scheme that is introduced to provide wider benefits for the employees on the completion of their employment. Every company that employs 20 or more employees falls under the EPF scheme. Here is the compliance checklist under EPF Act Eligibility Any person employed for work at an establishment or by a contractor in or in connection with an establishment and drawing a salary of Rs 15,000 per month is eligible under the EPF Act. The salary is calculated as basic salary and dearness allowance. Rate of contribution Employer – 12% Employee – 12% 1.6% to the central government Pension Fund All employees who fall under the Provident Fund become a member of the Pension Scheme. If a person earns Rs 15000 per month, 8.33% of the basic salary is contributed towards the pension scheme from the employers share of contribution. A minimum contribution of ten years is required to receive monthly pension. Compliance Checklist Employers PF dues – 15th of the following month Employees

  The employer who is a part of the  EPF  Scheme has certain tasks that he needs to fulfil. With the introduction of UAN and online portal, these tasks have become much easier. PF registration The employer has to register a new member to the EPF scheme by filling the Form 11. This form is not submitted to the EPF office but the employer uses it to fill the online form. Correction of personal details Before linking the UAN with the Aadhar and PAN the errors in the personal details of the members need to be fixed by the employer. Generating UAN If the new employee does not have an existing UAN, the employer needs to generate a UAN for the employee. To generate a UAN, the employer needs to log in to the UAN employer portal Upload KYC KYC becomes mandatory during the withdrawal of PF. PAN Details, Aadhar details and other KYC details is a requirement by the EPFO. It is the responsibility of the employer to update all KYC details of the employee. The employer needs to verify the KYC details

  Employee Provident Fund scheme comes under the Employees Provident Fund and Miscellaneous Act. 1952. Every company that employs 20 or more than 20 employees will fall under the Employee Provident Fund Scheme. List of documents required for Provident Fund Registration PAN card copy of firm, company, society, or trust A canceled cheque that has the name of the company or firm pre-printed and also the current account number. In the case of a partnership firm, the partnership deed needs to be provided Certificate of registration needs to be provided in case of proprietorship, partnership. Company or LLP In the case of a company, society, trust, or NGO, a certificate of incorporation needs to be provided. Copy of PAN card or directors and partners Copy of Aadhar card or voters identity card of directors

  Microfinance services are basically for individuals who do not have enough access to banking and other related services. The privilege of micro financing is given to unemployed and individuals who draw a low income. Microfinance companies can provide a loan or credit of up to Rs 50,000 in rural areas and Rs. 1,25,000 for urban areas. Such loans are given to small time entrepreneurs, enterprises and low income group. Here is a list of documents required to register a Micro finance company Copy of PAN card of directors and shareholders Copy of Aadhar card for directors and shareholders Bank statement, electricity bill or telephone bill as address proof Passport size photo Registered office proof In case of a self-owned property, electricity bill and ownership document is required In case of rented property, electricity bill, rent agreement and NOC from the owner should be obtained. Conclusion As India is a fast growing economy having a large population, it is difficult to open banks in

What is a Nidhi Company? Nidhi Company is a non-banking finance firm that comes under Section 406 of the Companies Act, 2013. The basic business of a Nidhi company is lending money to the member of the company.  Permanent funds, mutual benefit funds, a mutual benefit company, and benefit funds are few examples of a Nidhi Company. Characteristics of Nidhi Company A Nidhi company promotes small savings among the middle and lower middle class. Accepts term deposits based on timely returns The members of a Nidhi Company get easy access to loans against collaterals. Promotes effective means of savings and sanctions loans with minimum documentation. The membership structure is very rigid and therefore it follows a very secure means of investment. A Nidhi company mainly deal with and support small income groups. Depends on the honesty, integrity and loyalty of a member. Setting up a Nidhi Company does not require any RBI regulations There are lesser level of risks A Nidhi company follows a co

  ESI is a self-financing social security and healthcare benefit that is given to Indian workers. This fund is managed by the Employee State Insurance Corporation according to the rules that are listed out in the ESI Act 1948. List of documents required for ESI registration The License or Registration Certificate issued under Shops and Establishment Acts or Factories Act. Rent receipt of the space that you’ re occupying indicating the capacity of the place occupied Photocopy of the latest building or property tax receipt Memorandum of Association and Articles of Association, partnership deed, trust deed depending on the entity that is applying for registration Photocopy of certificate of commencement of production and/or registration number of GST Copy of PAN card Evidence in support of the date of commencement production/business/first sale (eg copy of first invoice) Monthly employment position, salary etc Copy of bank statement aavana.in

ESI is a health and social security scheme that requires 3.25% of gross salary as employers’ contribution and 0.75% as employee contribution which aggregates to 4% of the monthly contribution. The benefits of the ESI scheme include Medical Benefits The insured persons and dependants get full medical and surgical care without any limit at the ESI dispensaries and hospitals including other services like medical supplies, ambulance services, and super specialty services. Sickness Benefits Sickness benefit as cash compensation is given to the insured person at the rate of 70% of the wages during a period of certified illness for a maximum of 91 days in a year. To be eligible for the sickness benefit, the insured person needs to contribute for 78 days during a period of 6 months. Workers suffering from long-term diseases can claim sickness benefits for a period of 2 years at an enhanced rate of 80% of the wage. Disablement Benefits From the day the worker is registered to the scheme, irresp

  Every employer who is covered under this Act must adhere to various compliances. The employer has to make sure that the monthly contribution is deposited for the filing of half yearly return and report to the ESIC authorities. Documents that need to be submitted by the employer for ESI registration The License or Registration Certificate issued under Shops and Establishment Acts or Factories Act. Rent receipt of the space that you’ re occupying indicating the capacity of the place occupied Photocopy of the latest building or property tax receipt Memorandum of Association and Articles of Association, partnership deed, trust deed depending on the entity that is applying for registration Photocopy of certificate of commencement of production and/or registration number of GST Copy of PAN card Evidence in support of the date of commencement production/business/first sale (eg copy of first invoice) Monthly employment position, salary etc Copy of bank statement Documents that need to be sub

There is a reduction in the contribution under the ESI Act. The government has reduced the contribution to 4% from 6.5%. This was done to increase the workers' expected take-home salary and reduce the financial burden of the employers. This move is said to benefit 36 million workers and 1.28 million employers. There is a reduction of 1.5% from the contribution of the employers. It has been reduced to 3.25% from 4.75%. The employees’ contribution is reduced to 0.75% from 1.75% which is a 1% reduction. The reduction in the contribution is said to give substantial relief to workers and bring about more workforce into a formal sector. The reduction in the employer contribution is said to benefit the employer by reducing the financial liabilities of the organization. This in turn will have a positive effect on the business and increases the ease of doing business. The ESI Act, 1948 covers all employees drawing a monthly salary of Rs 21000. This limit was raised by the Government during

GST Council today in its 27th meeting approved principles for the filing of a new return design based on the recommendations of the Group of Ministers on IT simplification. What are the key elements of the new return design? What may be the effect? Is it going to complicate the system further or will it be easier like what we expected? All the answers are here, you just need to do sit back, relax & enjoy the write-up! One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage the load on the IT system. Composition dealers and dealers having nil transactions shall have the facility to file quarterly return. Authors View:  Composition Dealer’s Return & Nil return will continue to be quarterly based. However, for regular dealers there will be only one return, and return filing dates will be varied based upon the class of taxpayers

  In every dealing of financial aspects there are Do’s & Don’t that need to be diligently followed especially, if you want to avoid losses. These Do’s & Don’t are of utmost priority because it is based on the laws and rulings of the court that take place when it comes to the financial aspects of a nation. More precisely they hold a great effect on whether you choose to follow, either you make a profit out of it or incur losses that can be a little more than you were anticipating. Everything on this planet has its pros and cons, filing or not  filing of your income tax returns  is no different. The level of losses will only vary to case to case and the technicality differs from situation to situation. Interested to find out more then read on…. If filing of Income Tax return is not done before the due date: There will be heavy penalties levied for not filing income tax returns, it will be at the rate 1% per month from the  due date  of filing the return till the actual date of fi