Megha Goswami

How To Check Member IDs Or PF Accounts Linked To UAN

How To Check Member IDs Or PF Accounts Linked To UAN

Leave a Comment / EPF / By / April 16, 2024

How To Check Member IDs Or PF Accounts Linked To UAN: There are two ways to determine how many Member Ids or PF accounts are connected to your UAN. EPFO issues a Member Id, also known as a Member Identification Number, or an Employee Provident Fund (EPF) account number, to enable employers to send EPF and EPS contributions on behalf of their employees. When you change jobs, your EPF contributions are transferred to a new PF account number, also known as a Member Id. These various Member Ids should be linked to UAN starting in 2014. The distinction between a UAN and a Member Id is explained in this article. It shows how many Member Ids are connected to UAN in detail with photos. The two methods for determining how many of Member Ids are possible are as follows:

  1. At Member Home, log in to the UAN Portal and choose View-> History of Service.
  2. Go to the EPFO website and pick Know Your Claim Status under Our Services->Employees. Hit Enter after entering your UAN and Captcha. You can see a list of PF Accounts that are linked to a particular UAN.

Any missing PF numbers must be connected to UAN using the One Employee One PF connection.

What is the Difference Between a Member Id and a User Account Number (UAN)?

The employer pays the EPF (Employee Provident Fund) to the EPFO (Employee Provident Fund Office) on behalf of the employee. This covers both employee and employer contributions, as well as the Employee Pension Scheme. EPFO issues a Member Id, also known as a Member Identification Number or a PF Account Number, to enable employers to send EPF and EPS contributions on behalf of their employees. It’s as though the employer establishes an EPF account for its employee and contributes to it monthly.

The format of the Member ID or PF Account Number is as follows. It’s possible that your PF Account Number doesn’t have an Extension code. For example, the code for someone working in Bangalore may be BG/BNG/012345/789.

Office code of EPFO/ Establishment code which is maximum seven digits/ extension which is maximum three digits/ Account number which is maximum seven digits

BG/BNG/012345/0001789 is an example.

The Universal Account Number (UAN) is a unique identifier for each person. A 12-digit number is assigned to an employee who contributes to the EPF. A single UAN (Universal Account Number) should be assigned to each employee. Your UAN will be connected to all of your Provident Funds or Member Ids. It will keep track of all of your Member IDs. It’s like having multiple savings accounts, but they’re all linked to your single Permanent Account Number or PAN. So, if you change jobs and your new employer contributes to EPF, you’ll get a new Member ID. Your UAN number must be connected to this new Member ID.

How to Use the UAN Member Website to Check the Number of PF Accounts Connected to Your UAN

Log in to the UAN Member Website and select View->Service History from the drop-down menu.

You’ll see a list of the different companies where you worked, along with the dates that you started and left. The following details will be shown.

  • Your PF account Number or the member id
  • Your name, as mentioned on the EPF records of the organizations.
  • Company name for which you worked
  • DOJ EPF (Date of joining Employee Provident Fund) – The date of starting your EPF contribution. It must also be the date of joining.
  • DOE EPF (Date of Exit of Employee Provident Fund) – the date when the employer stops the contribution in your EPF account. It must be your resignation date.
  • DOJ EPS (Date of joining of Employee Pension Scheme) – This date is mentioned the same as DOJ EPF.
  • DOE EPF (Date of Exit of Employee Pension Scheme) – This dame is the same as the DOE EPF.
  • DOJ FPS – FPS means Family Pension Scheme of 1971, and it is not more than the operation. Employee Pension Scheme (EPS) replaced the FPS in 1995, and FPS is now called the Ceased Pension Scheme. This is not available for the employees with a joining date after 1995.
  • DOE FPS (Date of Exit of Family Pension Scheme) – This date is unavailable for the employees with a joining date after 1995.

More information is available by selecting Detailed View from the top right-hand corner.

How to Determine the Number of PF Accounts Connected to Your UAN Using Member Claim Status

Go to the EPFO website and pick Know Your Claim Status under Our Services->Employees.

Hit Enter after entering your UAN and Captcha. You can see a list of PF Accounts that are linked to a particular UAN.

You can see your transfer information by clicking on the connection from where you transferred the account, in our case, BGB002000000000003.

The message “No record is available for member id ABCD00000000” appears for accounts for which no move has occurred or for which no claim has been filed.

Succession Certificate, Letter of Administration, Probate of Will

Succession Certificate, Letter of Administration, Probate of Will

Leave a Comment / Certificate / By / April 3, 2024

Succession Certificate, Letter of Administration, Probate of Will: Getting your money to your loved ones is a lengthy paperwork process that goes through various steps when you were no more to help them out. You have to prepare some documents to prove that they are the legal heir for Mutual Fund, Bank account, Demat account, PPF, Financial Institutions of that particular person. Those documents are:-

  1. Succession Certificate,
  2. Letter of Administration, and
  3. Probated copy of Will.

Succession Certificate

Suppose there is no nominee attached to the account, and there is no survivor left among the account holders. In that case, the Succession Certificate is the only primary option left through which the heirs can stake their claim to the money or the benefits of the left relative. (Also, there is no availability of Will)

What is a Succession Certificate?

Under the Indian Succession Act, 1925 (h), a Succession Certificate is legal terminology that gives authority to their successor who can get the benefits to the represent that deceased to collect the claims, securities, and other debts, which is payable in the name of that successor or heir.

It establishes a legitimacy that the heirs or the successor can access all the debts, securities, and other assets left behind by the deceased.

Where Can We Apply for the Application?

We can apply Succession Certificate within the legal territory in either high court or district court.

Legal territory refers to where the assets fall, where the properties of the deceased relative or predecessor are situated by filing a petition file for succession certificate. Courts, high court, and district court are part of the judiciary, but it depends on the value of the deceased’s assets that in which court the case has to be present. It is known as “Pecuniary Jurisdiction” of the court.

  • In the petition, we have to give the brief detail about the petitioner or the heir:-
  • What was the relationship between the heir and the deceased?
  • Element of the heirs and all beneficiaries
  • The time, date, and place of death (if it is accidental, then brief detail about that too)
  • The death Certificate has to attach.

These are the documents that we have to submit in court.

After getting verified from the court, the court will issue the notice to the respective concern. Court gives information in a newspaper about the successor and deceased to publicly affirm that if anyone has any objection with this heir, they can raise their voice within the time frame (time frame is usually from one month to one and half months). If no one objects to the heir in that specified period, the court issues a succession certificate to the petitioner. And if there are two or more two petitioners, then the court grants them joint Certificate of Succession; they will not present more than one certificate for a single asset.

Lawyers may retain up to 3% of the value of assets, which did not include their fees. The court has fixed a 3% levy.

How Long Does It Take To Obtain the Succession Certificate from the Court?

It takes roughly three to four months from the date of filing the petition to the court. Sometimes this may take up to five to seven months also.

After receiving the Succession Certificate, is the person the rightful owner of the deceased person’s assets, securities, and other related properties?

No, this is not true. The person is not the rightful owner to spend the deceased person’s assets.

A Succession Certificate is a certificate that approves you as a nominee. We can say that the person is holding the Succession Certificate act is similar to the nominee.

Probate of Will

If there is a valid Will, then Succession Certificate is not granted; we can have a Probate of Letter of Administration is required.

Technical terms we have to familiar with before reading about “Will”:-

  1. Testate: Person dies leaving behind Will.
  2. Intestate succession: Person dies without Will.
  3. Testator: Person who creates Will.
  4. Legatee: Successor (Person inherit the property under Will).
  5. Codicil or Addendum: Part of Will used to add or alter the relation in Will.
  6. Executor: Person appointed by the tester to execute the Will. An executor is the legal representative of the deceased person.

Probate certifies Will’s authenticity, and it is a legal process taken from the court. It establishes the legal character of the person appointed by the tester to implement the Will and validate. The person appointed by the executor in the Will can grant the Probate.

When is Probate Necessary?

  1. Will is created by Europeans, East Indians, Armenians, Jews, Indian Christians, and Paris.
  2. Cases of Will are immovable property in a specific place like, Mumbai, Chennai, and Kolkata.
  3. For clearing the Will, the person has to report within seven working days from the date of death by the person who has made the Will.
  4. For getting Probate, we need to pay some cost, which includes legal fees and stamp duty. Stamp duty varies from one state to another.

How to get Probate of a Will?

Probate is a legal copy of the Will certified by the court of competent jurisdiction. It is the lasted Will which was created by the person before deceased on a particular date. Court sends the sealed copy of the Probate. No one is appointing under the Will to administer its provisions without a Probate except for the person whose name is written in the Will. The nominee can only hold the rights to access the assets but only after receiving or obtaining the Probate.

Application

The Probate application has to be filled to the court (pecuniary jurisdiction) with the help of a lawyer.

Documents Required for Probate of a Will

  1. Proof of death is the Death certificate of the Testator.
  2. Proof that the Testator evaluates will
  3. The Last Will of the Testator.

Alert or Notification

The successor has to file an objection in the notice that the court issued after receiving the petition or application for Probate; after that, the citation must be published in the newspaper for the general public.

Fees

The percentage of assets may impose by the court as a fee.

For example: In Maharastra, if assets are between Rs. 50,000 to 2 lakh, 4% of the asset will be charged as the fee for the court. If this amount exceeds two lakhs, the cost increases up to 7.5% of the total aid.

  • A Probate is a must if the Will is an immovable asset in Kolkata, Mumbai, and Chennai.
  • The Probate of Will is the establishment of the proof for the genuineness of Will from the death of the Testator.
  • Probate is different from the Succession Certificate.
  • The court issues the Probate when the person dies and has made a Will.
  • If the person dies without declaring his or her legal heirs, we must apply for the Succession Certificate.

These are applicable as per the Law of Inheritance.

Letter of Administrator

What if we do not have a declared successor on Will or Will does not contain any executor? Then we need to get the Letter of Administration.

The letter is issued by the court and appoints the Administration to discard the property of the person, if:-

  1. The Testator has failed to specify the executor on their Will. OR
  2. The executor appointed under the Will doe not accept the Will or its assets.
  3. When the executor died before the Testator, and the Testator has not updated the Will.

A Letter of Administration has to clear within 14 days after the date of death of the Testator.

For obtaining a Letter of Administration, we have to apply to the court.

After receiving satisfactory proof from they issue a letter of Administration, The application must contain the following detail on the Letter of Administration:-

  1. Date of death of the Testator, with time mention on it.
  2. Write an appropriate last Will.
  3. Court Duly executed documents.
  4. The total amount of assets.
  5. Name of the petitioner and other details, like relationship with the Testator.

Only one letter of Administration to be granted to one or more than one person. This Letter of Administration is not issued in the name of any minor.

Death Proof

Proof of Death is generally referred to as the Death Certificate. By submitting the Certificate of Death, we can present the Death Proof of the Testator.

  • If a person disappears, then according to the law, it is presumed to be that the person is dead.
  • A person died in the air crash, the ship sunk, or by any other means in which the person’s body was not recovered, then the court may provide a notice which satisfies the fact of the death of that person.
  • If a person killed on the battlefield while serving the country, the official notification will be provided as the Testator’s death.
Defective Return Notice Under Section 139 (9) | Steps and Reasons

Defective Return Notice Under Section 139 (9) | Steps and Reasons

Leave a Comment / Income Tax / By / March 25, 2024

Defective Return Notice Under Section 139 (9): An income tax is a form of direct tax levied by the Government on its citizens’ income. The income tax return is a statement that assesses the financial position of a person in a financial year. It is a statement showing the position of a person with all his sources of revenue and deductions, and at the end, it shows the amount of tax payable or tax refund.

The income tax return has to be filed at the end of every financial year. When a person files his/her tax return, it is checked, assessed, and processed bit by bit by the Income-tax department. The income-tax department matches all the information provided by you, such as your income sources, tax deducted with the information available with them. If all the information is correct, the department sends a final intimation under section 143(1), which says that you have filed your income tax return.

At times, people filling income tax return receive a notice from the Income-tax department that says, Defective return u/s 139(9). Why does this happen? What is a defective return notice?

A defective return notice under section 139(9) is issued to a person when the tax information provided by him is either incorrect or is missing.

Here in this article, you will get all the information regarding defective return notice and steps to respond to them.

Reasons That Render An Income Tax Return Defective

There are multiple reasons that can render an income tax return defective. Here we have mentioned those reasons:

  • The first and the most common error is when a person does not submit his/her Permanent Account Number (PAN), employer details, income details or tax paid.
  • Another error that can prove an income tax return as defective is when the tax deducted has been claimed as a refund. But there is no income information related to such deduction is available.
  • It is essential for the taxpayers that they furnish updated record of self-assessment tax paid. The details of tax challans numbers and other relevant information shall be filled in correctly. If the tax and interest have not been paid or information regarding it is not available, then it can render your ITR defective.
  • Not paying tax on bank deposits such as FDs and other such deposits can prove your income tax return as defective. Every bank deducts a 10% tax at the source on FDs and submits the documents to the income tax department. But persons coming under 20-30% tax slabs have to pay the remaining tax amount, which they don’t. This error can result in a defective income tax return.
  • An income tax return statement can be treated as defective when a person has not attached a balance sheet and profit and loss statement to the income tax return statement.
  • When a person’s total presumptive income is less than 8% of gross turnover or gross receipt, He/she has to file ITR-4. But most of the time, taxpayers file ITR-4S, which makes the income tax return defective. It is treated as error code 8 under the 139(9) section of the income tax act 1961.
  • According to the provisions of section 139(9), the error code 14 states that an income tax return is treated as a defective return if there is any negative amount under the gross profit or net profit section.
  • Lastly, an income tax return can be treated as a defective return if the tax determined is payable for ITR but is not paid. It is treated as an income tax error code 38 under section 139(9) of the Income Tax Act.

Defective Return Notice

What To Do After You Receive Defective Return Notice

If a person receives a defective return notice under section 139(9) from the income tax department, he/she need to respond to it as soon as possible. In response to the notice, the person can file a revised statement within 15 days of receiving the notice. While filing the revised statement, it is essential to mention the date of receipt of the notice.

If a person cannot file the revised statement within the stipulated time, he/she can seek an extension from the Assessing Officer. But after the extension period, if a person fails to file the revised return, the Assessing Officer will treat the income-tax return as invalid.

Steps To Follow To Respond To The Defective Return Notice

Once you have filed the return and the income tax department has processed it, and you receive a defective return notice. You have to respond to the defective notice by filing a revised statement with the Assessing Officer. Here we have provided the detailed step-by-step process which will help you to respond to the defective notice under section 139(9).

Step 1: Go to www.incometaxindiaefiling.gov.in. After opening the website, login into your account with your ID, password, and Date of Birth.

Step 2: If according to you, the notice sent by the Income-tax Department is correct, then you have to revise the ITR statement provided by you. For the revision of the ITR statement, click on the “e-file” tab and select “e-file in response to notice u/s 139(9)” from the drop-down menu.

Step 3: Once the page loads, you will find the notice under section 139(9) that has been issued to you. A defective return notice can either be issued by Assessing Officer or by the Central Processing Center. The process to respond in both cases are different.

Step 4: If you have received the defective return notice from the Assessing Officer, Click on the submit button.

Step 5: After the successful validation, upload the corrected XML file you have prepared and click on submit. Once the submission is made, a page with successful notice will be displayed on the screen.

Step 6: If the defective notice has been raised by the Central Processing Center and you agree with the defect, select ‘yes’ from under the “Do you agree with the defect?” column. Now, you can fill your Income-tax return by correcting the defect. Once you have corrected the defect, generate the XML file and upload it and then click submit. After successful submission, a success message will be displayed on the screen.

Step 7: In case if you do not agree with the defect, then click on ‘no’ from the “Do you agree with the defect?” column. After clicking on ‘no’, give the remarks under the “Assessee Remarks” column and click submit.

Withdrawal of Defective Response

In case if you want to withdraw any response submitted by you for defective return, it can also be done but within 3 days of filing such response. For withdrawal of the response, all you need to do is, click on the “withdrawal link” under the “Response Column”.

Once you click on it, the details of the response submitted by you will be displayed on the screen. Now, you need to agree with the withdrawal by checking the checkbox and clicking on the “Confirm Withdrawal” button. Once the response has been withdrawn successfully, a message will be displayed on the screen.

Conclusion

Income tax is a form of revenue for the Government of India, and every person has to file an Income-tax return. The tax so collected from the taxpayers is put into public use. Providing wrong information or manipulating income-related information can render your return statement defective, which can also lead to the cancellation of the return filed by you. It is essential to provide the correct information for tax calculation. In case you receive notice of a defective return, you should always respond to it.

How To Correct GSTR 3B After Filing?

How To Correct GSTR 3B After Filing?

Leave a Comment / GST / By / March 5, 2024

How To Correct GSTR 3B After Filing: GST refers to Goods and Services Tax charged on products sold for domestic consumption. Introduced by the Constitution Act in 2016, GST is a value-added tax, which will convert the country into one unified market. Taxpayers should file GSTR-3B every month till the 20th of the next month. GST return is a document that encompasses all the details of tax paid on purchases and sales. After filing the GST return, one becomes legally responsible to pay taxes on the income through business transactions.

Though there is less scope for mistakes, still the chances of error while calculating purchases, sales, input, and output taxes are common. Sometimes the taxpayer might miss considering the sale or some purchase. After the due date of filing returns for the next financial year, one cannot rectify the error in GSTR-3B. Check out each and every possible mistake and acknowledge how to correct GSTR-3B after filing.

Common Errors Found on GST Portal

  • Error in Validation After Submission of Amendment of Non-Core Application: This error shows the mistake in the provided basic information of the taxpayer. At the time of migrating, the portal permitted only the name of the PAN holder. Now, it is confirming the other data also, which involves address and date of birth. When this error is displayed, one should verify the entire data.
  • There is No Summary to Submit GSTR-1: When any invoice details under GSTR-1 have not mentioned then this error occurs. According to GST rules, taxpayers should add at least one line item with a null value. By putting in zero in all the fields, the system will not show any error and will let people file the return.
  • Processing Error: While requesting transitional credit of the returns in TRAN-I form, portals show this error. While saving the details of the existing registration in TRAN-I does not come out to be the same as mentioned in the Registration or Enrolment application, then this error is displayed.
  • System Error: While submitting TRAN-I through EVC, people can find system errors. This issue can be resolved by using GSTIN and DSC mode of filing while the EVC.
  • Invalid GSTIN: When the customer’s GSTIN entered is wrong then this error occurs. It can be resolved by checking the correct GSTIN on the government website and entering it.
  • Earlier Date Is Not Allowed for Invoice: When the date mentioned in the invoice is previous to the GST registration date, then this error occurs. The invoices should be transferred to the B2C section and the GSTIN numbers of customers should be deleted to resolve this error. It would be beneficial to recalculate the B2C summary and reupload it to the government portal.

What Issues Can Arise in GSTR-3B? How to Resolve Them?

GSTR-3B is the first Return Form presented after the implementation of GST. Introduced by CBEC, every registered taxpayer has to file this return form. It should involve a summary of information about the available input tax credit, sale and purchase, tax paid, and tax payable. There are numerous doubts raised about the mistakes while filing the GSTR-3B return. Many taxpayers want to know how to correct GSTR-3B after filing and the possible consequences due to errors made.

The situation I: Forget to include some of sales and purchase

If any person wants to amend the GSTR-3B, they can do it by filing the GSTR 1 or 2 return for the same month. For instance, if sales have been excess reported or less reported while filing GSTR-3B return, it can be corrected by filing return for outward supplies (GSTR-1). If any error occurs while providing claiming the eligible Input Tax Credit in GSTR-3B, it can be corrected while filing a return for inward details (GSTR-2).

It is not possible to revise GSTR-3B. The only option is to include them in GSTR-3B of the month in which one remembers it. However, it cannot be involved when the time period passes.

Situation II: Instead of CGST and SGST, payment of IGST is made

The cash balance of IGST payment cannot get adjusted against that for SGST and CGST. The only possible solution to resolve this problem is to claim the paid IGST refund later. However, the liability of CGST and SGST is to be paid in cash.

Situation III: Wrongly Filed Inward Details Under Reverse Charge Column and Return is Submitted

One might think of paying additional tax liability raised due to filing inward details wrongly under the reverse charge column. However, there is no need to pay any additional tax amount and know-how to correct GSTR-3B after filing. It is possible to correct the details in GSTR 1 and 2 return. After correcting these details, the additional tax liability shall be abandoned and updated automatically.

Situation IV: Forget to Claim or Claimed Less ITC in GSTR-3B

If a taxpayer forgets to claim ITC, then they can update all the details in GSTR 2. The additional ITC can be accredited to the electronic credit register after the submission of GSTR 2 and 3.

Situation V: Output Tax Becomes Less Than What Already Paid

The additional tax paid can be adjusted with the next month’s liability if the total GST liability of the registered taxpayer is less than the output tax liability stated in GSTR-3B.

Situation VI: Tax is Under Paid in GSTR-3B and Additional Tax Liability Arise After Changing GSTR-3B Details

The GST Portal will show the additional tax liability after changing the details of GSTR-3B through GSTR-1 and GSTR-2. This additional tax can be paid through an electronic cash record along with the late interest. If in case the total input tax credit claimed is wrong or less than what is claimed then it should be added to the output liability and can be paid by cash ledger.

Situation VII: Taxpayer Has Not Filed The GSTR-3B

If anyone has not filed the GSTR-3B then they can file GSTR 1, 2, and 3. After that, they can submit the form before the mentioned due dates. Once filed GSTR 1, 2, and 3 successfully along with taxes are paid, then there is no need to file the GSTR-3B.

Situation VIII: Payment for Submitted GSTR-3B Has Not Been Done

If a taxpayer has submitted the GSTR but payment is still pending then they can update and file accurate details in GSTR 1, 2, and 3.  After that, they should submit the form and then pay taxes. If late interest is imposed one should pay the same along with tax.

Is It Possible to Reset GSTR-3B?

GSTR-3B is a summary return of the total inward supplies and total outward supplies made during the month. Every business dealer registered under the GST regular scheme should file a GSTR-3B return. One should file a NIL GST return if there are no business transactions. There are no options to revise GSTR-3B; however, taxpayers can reset it.

‘Rest GSTR-3B’ announced by the GST Council enables taxpayers to change the status of submitted to ‘Yet to be Filed’. It allows the taxpayer to edit the filed details in the return. Moreover, one can use the choice to reset GSTR-3B only once. Following are the steps to Reset GSTR-3B:

  • Log in at GST Portal
  • Go to tab ‘Services’ and click on ‘Returns’. Now, visit Returns Dashboard
  • Choose the Financial Year and Filing Period. Under Monthly Return GSTR-3B, click on the option ‘Prepare Online’
  • Reset Activated GSTR-3B option
  • A warning message will appear on the screen, which involves an e-liability ledger will get deleted and Input Tax Credit will get reversed.
  • Success Message that shows that reset is successful will appear and the return status changes to ‘Yet to be filed’.
  • After making desired changes, a taxpayer should submit it again.

Conclusion

Once filed, GSTR 1 and GSTR-3B cannot revise and there is no concept of return revision in GST. However, any mistakes that occurred can be handled carefully by referring to the points mentioned above.

7th Pay Commission Calculator for Pay and Arrears

7th Pay Commission Calculator for Pay and Arrears

Leave a Comment / Finance / By / March 5, 2024

7th Pay Commission Calculator for Pay and Arrears: Once every decade, a pay commission is set up by the central government to restructure the pay structure of its employees by forming a pay commission. In addition to updating the salary structure, each pay commission has a term of reference (ToR), which broadly illustrates its focus. Pay commissions also decide pension salaries. The ToR of the 7th Pay Commission stated that wages would be revised, keeping in mind “simplification” and “rationalisation” of pay structures and “specific needs of multiple departments”. The pay commission set up by the Govt. of India is to restructure and revise the pay of 48 lakh employees and 55 lakh pension earners. This article explains how to calculate Pay and Arrears as per the 7th Pay Commission. It also presents the 7th Pay Commission Calculator for Pay and Arrears.

Highlights for 7th Pay Commission

  • According to the pay new structure, the existing basic pay as of December 31 2015, is multiplied by a factor of 2.57.
  • Earlier, the employees had to wait for 19 months to implement the Commission’s recommendations at the time of 5th CPC and 32 months at the time of implementation of 6th CPC. However, this time, the 7th CPC proposals are being completed within six months from the due date.
  • After taking into account the DA at the current rate (125 percent of basic pay), the salary/pension of all government employees/pensioners will be increased by at least 14.29 percent as on 01.01.2016
  • The 7th pay commission expels the existing grade pay system and the pay bands, thereby introducing a new matrix-based pay system, as prescribed by the commission. There are separate matrices for civilians, military nursing and defence personnel. The principle and rationale behind these matrices are equivalent.
  • The financial repercussions of accepting the Seventh Pay commission’s recommendations in 2016-17 will amount to Rs.1.02 trillion. There will be a supplementary indication of Rs. 12,133 crore for pension payments and arrears payments for the year 2015-16. Out of the total basket of Rs 102100 Crore, the majority, i.e., Rs 73650, will be from the Yearly budget and the rest from the railway budget

7th Pay Commission Salary Calculator

After the declaration of Dearness Allowance (DA) restoration for fifty-two lakh central government employees, central government servants (CGS) are busy evaluating how it will transform their 7th pay commission matrix. The reason for CGS’s 7th CPC salary calculation is due to the alteration taking place in their 7th CPC pay matrix. On July 25, 2016, the Finance Ministry announced the salary hike based on Seventh Pay Commission recommendations. From Aug 2016, about 1 crore employees and pensioners profited from the pay hike. To add to their salary for the month of August, the government decided to add the arrears for a period of seven months.

7th Pay Commission Calculator for Pay and Arrears

Calculation of Pay Under 7th CPC Commission

The 7th Pay commission simplified the calculation for succeeding revised pay through the new 7th CPC Pay Matrix. The following step by step will enumerate the process of calculating the revised pay, the allowances and the arrears under the 7th pay commission. Below are the six steps :

  • Step-I: Calculate your sixth CPC basic Pay.
  • Step-II: Multiplication of the output from Step-I with the Fitment factor of 2.57 as per the 7th CPC ( rounding off to the nearest rupee)
  • Step-III: Match the Answer with Matrix Table. If there is no matching figure in the Pay matrix, take the closest higher figure assigned in the Grade Pay column.
  • Step-IV: Find your HRA (House Rent Allowance). From 24%, 16% and 8% for 30%, 20% and 10% , HRA has been revised respectively.
  • Step-V: Find your TPTA (Transport Allowance). There are provisions for transport allowance in two kinds of places and for three employee categories. People residing in A1 and A city classifications are eligible to receive higher TPTA rates.
  • Step-VI: Add all the figures, and you will receive your updated 7th CPC Grass pay.

Arrears Received Under the 7th Pay Commission

The arrears were paid during the Financial Year 2016-2017 along with Aug 2016 salary. To calculate the Arrears, we have to find

  • The sum of the dearness allowance and the pay that one is entitled to receive due to the pay revision under the enforcement of new rules for the period starting from the 1st day of Jan 2016.
  • The sum of the pay and dearness allowance to which he would have been entitled to that period had his pay and allowances not been so revised.

Pay Matrix of 7th Pay Commission for Civilians

The seventh pay commission got discarded of the pay grade and used a pay matrix to fix pay. “Pay Matrix” means Matrix with Levels of payment regulated in vertical cells assigned to equal existing Pay Band and Grade Pay or scale. This pay band guarantees that there are no unbalanced jumps in salaries when one gets promoted, as was the case with the six CPC pay scales. For example, if you are a level 11 employee at table 16 earning Rs 70,000 per month, upon being promoted to level 12, you will earn Rs 86,600 and not the entry pay of level 11.

  • There are a total of 18 levels of promotions that an entry-level employee can go through.
  • In the Pay Matrix “Level” indicates the Level corresponding to the present Pay Band and Grade Pay.
  • There is an index for the number of years one has served in the government within these levels.
  • These indexes decrease as one goes up the hierarchy. A cabinet secretary is at level 18, the highest possible, with Rs 2,50,000 salary a month. They will not receive the 3% annual profit.

7th Pay Commission and HRA

As per the 6th CPC, the HRA percentages were prescribed on basic pay according to the cities in India. The cities were classified as X, Y and Z, and the percentage rates for the cities are 30%, 20% and 10% on basic pay. Under the 6th pay commission, the house rent allowance has been revised and rationalised to different brackets for all central government employees. These brackets are 16 percent for class Y, 24 percent for class X, and 8 percent for Class Z cities. The rate of HRA was revised to 27, 18 and 9 percent when DA passes 50 percent, and further revised to 30, 20 and 10 percent when DA crosses 100 percent.

Transport Allowance

The 7th CPC Transport Allowance for three Category of Employees are of Two Types of Places:

If you are residing in A1 and A classified cities, you will be allowed higher TPTA rates. The Division of A1/A has been terminated for other purposes but held for Transport Allowance. There are 19 cities rated as A1/A

  • 6 in A1 are Delhi, Bengaluru, Hyderabad, Greater Mumbai, Chennai, Kolkata, and 7 in A are Ahmedabad, Surat, Nag Pune, Jaipur, Lucknow and Kanpur.
  • Recently, six more cities have been added to A1/A categories, making it nineteen in all – Patna, Kozhikode, Indore, Kochi, Coimbatore and Ghaziabad.

7th Pay Commission and Employees

A spate of analyses has been circling how helpful the 7th Pay Commission mandated pay hikes. As approved by the Union Government with reflective effect, the 7th pay commission has benefited the economy.

  • Unlike the private sector, where the payment is updated annually depending on the production and skills, government employees have to typically pause for a decade for any extraordinary revision in their wages if one sets down the 3 per cent routine annual pay increase.
  • The cost of living and food prices have increased since the 6th pay commission.
  • State government and Central Government workers are the ones who get a pension, and each time the payment of serving employees is increased, a pensioner’s pension is also increased.
  • There are also other post-retirement facilities like health care.

Conclusion On 7th Pay Commission Calculator for Pay and Arrears

The 7th pay commission served as a breath of fresh air to government employees and pensioners across India. It brought in the necessary amendments in the pay structure of Government employees, which was long overdue. Through this article, one is expected to understand the calculation of the 7th CPC pay and arrears calculation and also a compact understanding of the overall 7th pay commission and its elements.

PPF Interest Rate History

PPF Interest Rate History | Features and PPF Interest Rate Over Years

Leave a Comment / EPF / By / February 29, 2024

PPF Interest Rate History: Public Provident Fund (PPF) is a long-term retirement saving scheme to provide a secure post-retirement. The Government of India usually offers the PPF, and the PPF rates are said to be 7.1 percent from April 2020 to June 2021. The most troubling question is if the PPF Interest Rate is fixed? What are the new PPF withdrawal rules? How does one often fix PPF changes? What is the range of PPF interests over the years? This article on PPF Interest Rate History is the solution to your questions.

PPF Interest Rate History

PPF, or Public Provident Fund, was launched from 1968 to 1969. However, the historical returns of the Public Provident Fund since 1968 are elucidated below-.

Earlier the PPF interest rates were announced once a year. However, from 2016 to 2017, the Public Provident Fund rate of interest is reported quarterly. This is done based either on the previous quarter’s yield on benchmark government securities or the bonds of corresponding maturities and a few extra of about 0.25 percent.

It is to note that the Public Provident Fund or the PPF interest is calculated on the lowest balance and is usually done between the 5th day and the end of the month every month. However, the Public Provident Fund interest is credited only to the financial end period of the year.

  • The Public Provident Fund Interest rate in 1968 to 1969 and 1969 to 1970 was 4.8 percent precise.
  • The PPF Interest rate was slowly raised and peaked at 12% between April 1, 1986, to January 14, 2000.
  • The PPF interest rate fell again and reached eight percent in 2011.
  • The PPF interest rate slowly increased again and reached 8.8 percent from 2012 to 2013.
  • The PPF fell to 7.9 percent in June 2019 and remained at that pace till Mar 2020.
  • It has now further reduced to 7.1 percent from April to June 2020.

Essential Features Of Public Provident Fund

  • Tenure: The Public Provident Fund holds a minimum of 15 years of the term, which can be extended in blocks of five years as per the individual’s request.
  • Investment Limits: Public Provident Fund allows the investor to hold a minimum investment limit of Rs 500 and a maximum investment limit of Rs 1.5 lakh for each financial year. However, the investments can be made either as a lump sum or in a maximum of 12 instalments.
  • Opening Balance: The PPF account can be opened with just Rs 100, and the annual investments reach above Rs 1.5 lakh. However, this will not earn the interest and is not applicable or eligible for tax saving.
  • Deposit Frequency: Deposits credited into a Public Provident Fund account have to be noted to be made at least once every year for 15 years.
  • Deposit Method: The deposit method for a Public Provident Fund account can be made through modes such as a cheque, award of cash, through Demand Draft or even an online fund transfer.
  • Nomination: A Public Provident Fund account holder can designate a nominee for her or his account. This can be done either at the time of opening the account or subsequently.
  • Joint accounts: A rule stated is that the Public Provident Fund account can only be held only in the name of one individual. Therefore, opening an account in joint terms is ruled out.
  • Risk factor: Since the Indian Government backs the Public Provident Fund, a PPF fund offers guaranteed, risk-free returns and complete capital protection. However, the potential risk element involved in holding a Public Provident Fund account is minimal.

PPF Interest Rate Over Years

Public Provident Fund Interest rate over the years in also tabulated below for a brief comprehension-

Year Range Public Provident Fund Interest Rate
1968- 1969 4.80 percent
1969- 1970 4.80 percent
1970- 1971 5 percent
1971- 1972 5 percent
1972- 1973 5 percent
1973- 1974 5.30 percent
1.4.1974 to 31.7.1974 5.80 percent
1.8.1974 to 31.3.1975 7 percent
1975-1976 7 percent
1976-1977 7 percent
1977-1978 7.50 percent
1978-1979 7.50 percent
1979-1980 7.50 percent
1980-1981 8 percent
1981-1982 8.50 percent
1982-1983 8.50 percent
1983-1984 9 percent
1984-1985 9.50 percent
1985-1986 10 percent
01.04.1986 to 14.01.2000 12 percent
15.01.2000 to 28.02.2001 11 percent
01.03.2001 to 28.02.2002 9.50 percent
01.03.2002 to 28.02.2003 9 percent
01.03.2003 to 30.11.2011 8 percent
01.12.2011 to 31.03.2012 8.60 percent
01.04.2012 to 31.03.2013 8.80 percent
01.07.2019 to 31.03.2020 7.90 percent
01.04.2013 to 31.03.2016 8.70 percent
01.04.2016 to 30.09.2016 8.10 percent
01.10.2016 to 31.03.2017 8 percent
01.04.2017 to 30.06.2017 7.90 percent
01.07.2017 to 31.12.2017 7.80 percent
01.01.2018 to 30.09.2018 7.60 percent
01.10.2018 to 30.06.2019 8 percent
01.04.2020 onwards 7.10 percent

Why Does A Public Provident Fund Interest Rate Change?

The earlier Public Provident Fund Interest rates were announced once a year.  However, the Public Provident Fund interest rate shifted to a quarterly announcement from 2016 to 2017 based on the previous quarter’s yield on both the benchmark government securities or bonds of corresponding maturities and a few extra around 0.25 percent.

The Indian Government issues the 10-year Treasury Public Provident Fund bonds with funding itself, a debt obligation. A 10-year Treasury note helps to pay interest at a fixed rate on a half-yearly basis. It also delivers the face value to the account holder at maturity. In June 2020, the PPF benchmark was 6.45 percent, and the bond maturing in 2029 offered a 5.97 percent yield, the lowest since January 27, 2009.

Is It A Public Provident Fund That Makes One Crorepati?

With Public Provident Fund interest rates going down, it is to be noted that one needs to invest longer to become crorepati by investing in Public Provident Fund.

Using the 7.1 percent interest for the entire period, account holders can become crorepati after investing in Public Provident Funds for over 25 years, however not overnight.

In this period of 25 to 30 years, an individual can invest in Rs 45 lakh, and the Public Provident Fund interest getting credit into the Public Provident Fund would account for Rs 1,09,50,911. So, in short, there are chances that an individual can become a crorepati by investing in a Public Provident Fund.

Should One Invest in PPF?

The Government of India runs a Public Provident Fund (PPF), and hence it is almost risk-free and is a highly safe platform to invest in. However, it also falls under the Exempt Exempt Exempt category.

  • It would be best to remember that the money you invest is eligible for tax deduction under Section 80C, which is up to Rs.1,50,000 currently.
  • The Public Provident Fund interest income earned every year is tax-free. And is a must to be included in the ITR.
  • The maturity amount in terms of PPF is also completely tax-free.

Hence, the Public Provident Fund is a part of their debt portfolio for many account holders where the returns do not fluctuate like stocks or equity MFs.

What was the highest PPF interest rate ever?

12%
The highest interest rate that the Employees’ Provident Fund (EPF) and Public Provident Fund (PPF) have ever offered was 12%. PPF hit that peak between 1 April 1986 and 14 January 2000, while EPF offered that rate from FY1990 to FY2001.

How much we get after 15 years in PPF?

PPF Calculation Examples for Different Investment Tenures

C:\Users\OBUL\Desktop\How much we get after 15 years in PPF.png

What is the PPF interest rate for 2020 21?

As per the ministry circular, PPF will continue to earn 7.10%, the NSC will fetch 6.8%, and Post Office Monthly Income Scheme Account will earn 6.6%. Here is a look at the interest rates on various small savings schemes for the second quarter of FY 2021-22.

Which bank has highest PPF interest rate?

State Bank of India (SBI)
State Bank of India (SBI), which is the largest bank in the country, offers the PPF scheme with a good interest rate. SBI has over 15,000 branches in India, therefore, getting access to the scheme is easy.

Can I have 2 PPF accounts?

As per the Public Provident Fund (PPF) Scheme rules, an individual cannot have more than one account. However, many people still inadvertently end up opening more than one PPF account; they would have opened PPF accounts with two different banks or with a post office and a bank as well.

What is CAGR of PPF?

PPF Returns vs ELSS Returns

According to Value Research, the 5-year CAGR of the ELSS category is 21.19% compared to 8.2% for the PPF.

How can I get 1 crore from PPF?

So, like mutual fund SIP, a PPF account holder can accumulate ₹1 crore by simply investing ₹9,000 per month in one’s PPF account for 30 years using extension facility in 15th, 20th and 25th year of PPF account opening.

Vakalatnama Vs Power of Attorney

Vakalatnama V/s Power of Attorney | What is Vakalatnama and Power Of Attorney? Decisions Undertaken

Leave a Comment / Corporate Law / By / February 21, 2024

What is Vakalatnama?

The Advanced Law Lexicon Vakalatnama includes any document or memorandum of appearance by which an attorney or advocate is entitled to plead or appear before any court of law, tribunal or other authority.

A Vakalatnama remains undefined either in the Civil Procedure Code, 1908 or in the Power -of- Attorney Act, 1882 act of laws. A Vakalatnama is a document that empowers or entitles an advocate to act on behalf of his or her client.

The act of Vakalatnama, under which an attorney is entitled or empowered to act may be general. However, the act may confer broad authority upon an advocate.

An attorney who holds the act of Vakalatnama can hardly be said to be an individual without any authority. The basic rule of constructing a legal document is done through the appointment of an agent which is different from that of construction of the Vakalatnama during the council’s appointment.

The pleader is defined under section 2(15) of the Civil Procedure Code, 1908, and entails as follows-

The term “Pleader” conveys the meaning that “any person entitled to appear and plead for another individual in Court and includes an attorney or a vakil (lawyer), and an attorney of a High Court.

Vakalatnama

What is the Power Of Attorney?

Section 1A of the Definition in The Power of Attorney Act, 1882, states that any instrument that empowers a specified individual to act for in the name of the individual executing the power or the act.

According to Osborn’s Concise Law Dictionary, the term ‘Power- of – Attorney’ means a formal instrument by which one individual empowers another individual to represent that bereaved of the act in his stead, for a specific motive, commonly in the form of a deed poll and attested by two or more witnesses.

The donor of the power is referred to as the constituent or the principal and the donnee is referred to as the advocate. The donor is not liable or entitled to exercise his or her powers for his or her benefit. For example, the individual draws cheques on the attorney’s account to clear his or her debts.

According to Jowitt’s Dictionary of English Law, the term ‘Power- of – Attorney’, is considered as the formal instrument by which one individual empowered another individual to act for his or her stead or represent him or her for specific reasons and purposes.

According to Wharton’s Law Lexicon, the individual who is permitted to do any lawful act instead of the other is referred to as the advocate or donor of the power–of–attorney.

According to Stroud’s Judicial Dictionary, the term ‘Power-of- Attorney’ is defined as the authority whereby the other individual is ‘said in turn, place of another or stead’ to act for him or her.

According to Mitra’s Legal Dictionary, the term ‘Power-of-Attorney’ includes any instrument that is not chargeable with any fee under the law that relates to the court fees for the time being in force. This empowers a specified person to act for and in the name of the person executing the act or law. The Indian Stamp Act, 1899, defines the act as such.

Power of Attorney

Decisions Undertaken

The Case of Baru Singh V/s Babu Ram Sharma, 1997 

According to the case of Baru Singh V/s Babu Ram Sharma, 1997, “The signed Vakalatnama has to be obtained by an attorney from the client when it has to be filed in the Court of Tribunal or the Court of Law to plead on behalf of the signed client.

No Vakalatnama is required to perform other legal works, namely, sending notices, drafting documents and petitions, and voicing or giving opinions.

A signed Vakalatnama requires to be obtained during the time of the filing in the Law of Tribunal or Law or Court, where the law requires such documents that have to be filed to enable the attorney to appear before and plead the case in the Court of Law or Tribunal of Law. This is to be done on the behalf of his or her client executing the Vakalatnama in his or her favour.”

The Case of Oil & Natural Gas Commissioner V/s M/s Offshore Enterprises Inc

According to the case of Oil & Natural Gas Commissioner V/s M/s Offshore Enterprises Inc,

“Section 30 of the Act goes as follows- The constituted attorney has no right to plead and the constituted attorney is merely entitled to ‘act’ and ‘appear’ for a party but holds no right to ‘plead’ in a Court or Tribunal. However, the expressions ‘act’ and ‘appear’ do not signify the right to plead as such.”

The Case of M/s Goa Antibiotics & Pharmaceuticals Ltd. Vs. R.K. Chawla & Another, 2011

According to the case of M/s Goa Antibiotics & Pharmaceuticals Ltd. Vs. R.K. Chawla, “An individual can appear in-person and argue his or her personally, however, he cannot bestow the power of the attorney to any other person other than that individual who is the case as an advocate to appear on his or her behalf. To hold an attorney against the said law otherwise would be to defeat the provisions of the Advocates Act.”

The Case of M/s Shree Chem V/s The Rajasthan Financial Corporation, Jaipur And Others

According to the case of M/s Shree Chem V/s The Rajasthan Financial Corporation, “The Hon’ble Supreme Court has legislated that the power of advocate holder cannot, unless that individual, whether she or  he is an enrolled Attorney and appears in the Court or Tribunal on behalf of any individual unless permitted by any Tribunals or Courts under Section 32 of the Act.”

The Case of Nimbaram Bora V/s Union of India AIR, 1992

According to the case of Nimbaram Bora V/s Union of India, “An individual cannot habitually represent parties in public interest litigations and conduct or build any cases as this leads to a violation of Section 32 of the Advocates Act, 1961.

The Court of Law observed that the term ‘practise’ signifies the repeated habitual performance or the habit or the succession of acts of a similar kind.

When an individual is in favour of a power-of-attorney, it is absolutely clear that any individual who is not an advocate cannot, as of right, claim to plead for another”.

Registration of a Partnership Firm in Tamil Nadu-Step By Step Procedure

Registration of a Partnership Firm in Tamil Nadu-Step By Step Procedure

Leave a Comment / Corporate Law / By / February 21, 2024

Registration of a Partnership Firm in Tamil Nadu-Step By Step Procedure: People who have come together or entered into a partnership with another individual or group on a business are individually known as ‘partners’. They are collectively referred to as a ‘Partnership Firm.” A partnership firm is not a separate legal entity that has distinct firm names from its members.

The registration of a Partnership Firm highly depends on the Government processing time and varies for each State accordingly.

This article briefly elucidates the step-by-step registration procedure of a partnership firm in Tamil Nadu.

Partnership Firm Registration

A Partnership Firm works based on the guidelines and rules laid in the deed of Partnership or the Partnership Agreement. Moreover, each partner decides on the roles,  responsibilities, and splits their profits and losses based on the Deed of Agreement.

The registration for the Partnership in India comes under the purview of Section 58 of the Indian Partnership Act 1932 and after successfully registering a partnership firm, the owners can start establishing and expanding their business network.

Partnership Deed for Registration Of A Partnership Firm

The most crucial step of registration of a partnership firm is registering the Partnership deed with the Registrar. The partnership deed holds a particular professional format that an advocate will be able to help the firm create.

Further, the firm must draft the deed in the said format, and make a copy of it onto a stamp paper of the appropriate value.

The partnership deed must be printed on a stamp paper of Rs. 300 and must hold the signatures of all the partners.

Every partner should keep a copy of the partnership deed, while the original must be kept with the firm.

Documents Required for Registration Of A Partnership Firm

  • Deed of Partnership
  • Attested photocopies of ID card proofs along with Address Proof of all partners in the firm
  • No Objection Certificate or NOC for own premises
  • Rental agreement if the partnership is based on a rented premises
  • Acknowledgement of the payment of Government fees
  • Authorisation letter given by the partners
  • Original signed copy of Form-1( This can be obtained after successful registration)

Step-By-Step Registration Procedure Of A Partnership Firm In Tamil Nadu

Here is a step by step guide for the successful registration of a partnership firm in Tamil Nadu-

Step-1: Drafting A Partnership Deed

Each partner of the proposed partnership firm needs to draft an agreed deed of partnership, agreed mutually by all individual partners. The partnership deed must be printed on Rs. 300 stamp paper.

This is considered the first basic document of the registration process. You can refer to the model of a draft Partnership deed from the link provided below-

https://kalkimurali.wixsite.com/website/post/model-of-a-draft-partnership-deed

Step-2: Other documents

Upon successful completion of the drafting of the partnership deed, submission of the following documents as photocopies is required-

  • Rental agreement if the partnership is based on a rented premises
  • Attested photocopies of ID card proofs along with Address Proof of all partners in the firm
  • No Objection Certificate or NOC for own premises
  • Letter of Authorisation provided by the partners

Note: The letter of Authorisation will be provided by partners to authorise a professional, as a witness for the firm and the partners, to appear at the Registrar office.

Step-3: Online Registration (Registrar Of Firms Website)

The website link for the Tamil Nadu Partnership Firm online registration form is linked below-

https://tnreginet.gov.in/portal/index.jsp?JSESSIONID=AY3On6J1yffUcbncHHfVHB+Y.portal6

  • Creation Of  A User ID In The Firms Website: A partnership firm has to register on the official website and must create the login credentials. Upon successful creation of the login credentials, the user has to login into the website and apply for the completion of the firm registration. The Form-1 Application form will be displayed on the website portal.
  • Filling Of The Form-1 Application Form And Submission: The Form-1 application form must be filled online. All the necessary information required to fill up the application form will be on the drafted deed of partnership. Additional details required for the application form are the details of the person who are undersigned as the witnesses of the firm, such as his or her name, Date of birth, Profession, and PAN Card number of the witnessing individual.
  • Uploading Of The Supporting Documents And Signing Of The Form-1 Application: The firm must upload a supporting document- the scanned copy of all the documents mentioned above. Upon successful registration of the details, the Form-1 Application will be generated. The Form-1 Application needs to be manually signed by all the partners and also by the witness-bearing firm and the partners.

The person who witnesses may take up the role as an Auditor or Notary public or Advocate or IT practitioner.

Step-4: Payment Of The Government Fees

A fee of Rs. 200 must be paid online after submission of the Form-1 Application Form. The acknowledgement form of Payment needs to be printed out.

Step-5: Submission Of Documents To The Registrar Office

After successful submission of the form online and the successful payment of the fees in the Registrar of firms portal, the final step in the step-by-step registration process is the manual submission of the documents mentioned in the portal.

Step-6: Confirmation Of Successful registration Of Firm

After successful verification of the Application and the paperwork, the Registrar of Firms will confirm the registration and the status of the firm through an email along with the Firm registration number. The registration certificate of the firm will be issued by the Department within two to three days and the time taken for the Firm registration is generally seven to ten days.

Drawbacks That An Unregistered Firm Faces

When a  firm has not registered, it dilutes its right to sue another party in case of any disputes or issues. Unregistered entities cannot approach a registered firm when it comes to filing a suit against the defaulter in case of a dispute.

A firm that doesn’t hold a registration cannot file a suit against any outsider entity in any court of law or tribunal. Unregistered firms do not hold the right to leverage any legal proceedings in any court of jurisdiction within India.

Incorporation of Limited Liability Partnership (LLP)

Incorporation of Limited Liability Partnership (LLP) | Steps, Process, Features and Precautions

Leave a Comment / Corporate Law / By / February 21, 2024

Incorporation of Limited Liability Partnership (LLP): Limited liability partnership or LLP is a corporate and legal entity that is a separate entity from its partners. The LLP enjoys the status as a separate legal entity only after the incorporation.

Upon successful LLP registration, the LLP can hold, acquire or dispose of all kinds of assets and holds the right to sue others and can be sued in its name.

The prerequisites for the incorporation of a new Limited Liability Partnership are the provisions relating to the registered office of the LLP and the changes therein. The provisions relating to the approval, reservation of name and changes therein are also included.

You can acquire a brief comprehension of the Incorporation of the LLPas you go further.

Steps for Incorporation of LLP

The transition of the LLP Rules, 2009, to the LLP Second Amendment Rules, 2018,  resembles the phase of shifting from your old house to a new one. All the provisions about Incorporation of LLP are changed as per the new LLP Amendment Rules, 2018.

Process Of Incorporation Of LLP

Step – I: Application for the Name Approval:

The first step in the process is the application of the name approval. Here is the six-step for the name approval-

MCA Website Login

All applicants have to login into the MCA account on the official website. Pro-existing users can make use of their earlier account while the new users will have to create a new account.

After successful login, users must click on the ‘RUN’ icon on the MCA service. All the applicants must fill in the necessary information on the online application form. Note that the Application form cannot be downloaded.

Users must remain aware that since October 2, 2018, the e-form LLP-1 has been omitted from the LLP Act, 2008.

Details Regarding The Online Form

  • Entity type Limited Liability Partnership
  • LLPIN: The LLPIN has to be entered only when an existing enterprise wishes to change its name and makes use of the RUN to reserve a new name
  • The proposed name
  • Comment to mention the objects of the proposed Limited Liability Partnership and any other relevant information Like TradeMark etc.
  • Choose any attachment file

Choosing Of The File:

This option is available to upload all the necessary PDF documents. If the applicant wants to attach any file, they can be uploaded making use of this option.

Submission of Form:

After the successful completion of the above three steps, the applicant shall submit the Form on the MCA website.

Payment of Registration Fees:

The MCA website provides no option of paying later in the RUN. Applicants have to pay the registration fees immediately after the successful submission of the form. After successful payment, the challan shall be generated.

Validity of the Reserved Name:

The reserved name after the completion shall be valid for 20 days from the date of approval of the name.

Step – II: Document Preparation for the Incorporation of LLP

After approval of name or for Incorporation of Limited Liability Partnership, the applicant has to prepare the following documents for successful approval-

  • Proof of the office address, whether it was a conveyance or the lease deed or the rent agreement etc. along with rent receipts
  • Copies of all the utility bills not older than two months
  • No Objection Certificate or NOC from the property owner
  • Digital signatures of all the designated partners
  • The Subscriber Sheet which includes the consent
  • Copy of approval in case the proposed name contains any word or expression that requires approval from the Central government
  • If the designated partner does not have a DIN, it is mandatory to attach the two documents- proof of identity and the residential address of the subscribers
  •  Details of Limited Liability Partnership and the company in which partner or the designated partner is a director or a partner

Step – III: Filling of the Form

Once all the above-mentioned documents or information are available or successfully uploaded, the applicant has to fill the information in the e-form known as ‘FiLLiP’.

Features of the FiLLiP Form

An individual or the person can also apply the name in the FiLLiP form. The application of the PAN or the TAN number is a must or a compulsory category for all the fresh incorporation applications filed in the new version of the SPICe form.

Single Window Form:

Before the inception of the Single Window, a person who wanted to incorporate an LLP, could apply for the DIN and get the approval of the name availability as a separate form for the registered office address, etc. But the FiLLiP form is a single-window for the Incorporation of a Limited Liability Partnership.

The FiLLiP form is used for three main purposes-

  • Application of the DIN number
  • Application for the Availability of Name Approval
  • No need os a separate LLP annual filing form for the registration of the address of the office

Step – IV: Submission of FiLLiP on the MCA Website

Once the FiLLiP form is ready with the applicant, the form must be uploaded on the MCA website and proceed further to make the payment of the same.

Step – V: Certificate of Incorporation

The incorporation certificate shall be generated by the LLPIN after the successful completion of the above steps.

Step – VI: Preparation of the Limited Liability Partnership (LLP) Agreement

After the Incorporation of a Limited Liability Partnership (LLP), the partners have to execute the LLP Agreement.

The Limited Liability Partnership (LLP) Agreement shall be executed on the stamp paper. The amount of stamp paper is one percent of the capital of the Limited Liability Partnership. The LLP Agreement shall be filed in e-form LLP-3.

Precaution To Be Taken By The Professionals

There are two precautionary methods to be taken to prevent issues.

  • Obtain engagement letter from the partners- As per the certification in the FiLLiP e-form, the professional must state a declaration that he or she has been engaged for certification. Therefore it is highly advisable to obtain an engagement letter from the partners.
  • Ensure all attachments are clear enough to read- As per certification on the FiLLiP e-form, professionals must state a declaration that all attachments are completely and legibly attached.
Withdrawal Provident Fund

Withdrawal Provident Fund | Forms and Steps for Withdrawing EPF

Leave a Comment / Corporate Law / By / February 21, 2024

1952’s Employee PF Scheme

In 2021, the EPFO changed several restrictions and guidelines regulating withdrawals from the Provident Fund account. The goal of these adjustments is to make it easier for subscribers who are experiencing financial hardship as a result of the coronavirus outbreak to access their PF money. As per the new guidelines, all the PF account holders can withdraw the smaller of up to three months’ basic pay + dearness allowance, or 75 % of their PF or EPF account’s net balance. This is considered as a non-refundable deposit. These withdrawal claims can be made through the internet. Online claims also have to be resolved within three working days, however, offline claims can take up to 20 days.

The Employees’ Provident Fund Act 1952, Chapter VIII, lists the reasons for which a member employee might withdraw Provident Fund (PF), including:

Para 68 B/BB/BC

Housing loan, or purchase of any house, site or flat, or purchasing land for construction, or any added alterations in an existing house, or the repayment of the housing loan

Para 68 H

Factory’s lockout or closure

Para 68 J

Illness of any family member or the employee

Para 68 K

Marriage of the employee or their brother, sister, son, or daughter

Para 68 K

Children’s post matriculation education

Para 68 M

Electricity cut in the establishment

Para 68 N

Equipment’s purchase by a physically handicapped person

Para 68 NN

A year before the retirement

Para 68 NNN

Investment-related to Varistha pension Bima Yojna

Para 68 HH (Unemployment Advance):

(Related to 2018’s amendment in Employee’s PF Scheme): Please note that this condition is in addition to Paragraph 69(2), which states that the provident fund must be fully settled. Employees’ Provident Fund Organization confirmed this in Manual/ Para 68HH/ dated December 19th, 2018, which was included with the 2018’s amendment in Employee’s PF Scheme. Paragraph 69 HH allows an individual who has been terminated from work to make a non-refundable withdrawal of 75 percent of his accrued corpus after one month from the date of termination.

Furthermore, if the individual remains unemployed for a period of two months or more, or is working in an establishment where the scheme is not applicable, he is allowed to withdraw the remaining 25% and settle the PF amount completely under Para 69HH read with Para 69(2).

Para 68 L (Natural Calamities or any other abnormal condition)

(Related to 2020’s amendment in Employee’s PF Scheme): A provision has been made in Vide Notification GSR.225(E), dated 27.03.2020, for withdrawal of a non-refundable advance on account of COVID-19 from the member’s PF account not exceeding the smaller of their basic wages and dearness allowances for three months or up to 75% of the amount standing to his credit in the fund.

Para 69 (2)

The provision for the funds’ entire withdrawal from the PF account is as follows:

It states that upon ceasing to be an employee provident fund in any establishment to which the Act applies, a member may withdraw the full amount standing to his credit in the fund, provided that he has not been employed in other establishment or factory or organization to which the Act applies for a continuous period of not below two months, preceding the date on which he makes the withdrawal application in PPF Account.

Para 76 (b)

This paragraph specifies the penalties that will be imposed if any person:

  • submits a false statement, return, or other documents, or makes any false declaration, or fails to submit any return, statement, or other documents essential for this scheme.
  • violates or fails to comply with any other provision of this Scheme, he may be sentenced to one year in prison, a fine of up to four thousand rupees, or both.

Forms for Withdrawal and their Purpose

Form 19

This form is used to settle the provident fund account as its whole, as stipulated in Paragraph 69 of the Scheme.

At the form’s end, the member also has to state that he/she has been unemployed for around two months.

Composite Claim Form

EPFO has combined Form 19 (final payment of provident fund), Form 10C (pension withdrawal), and Form 31 into one form (for availing non-refundable withdrawal of provident fund).

The document also indicates that if the money is used for anything other than what is specified on the form, the member will be required to refund the entire sum, plus interest.

The form also comes with an instruction booklet, which states that the member does not need to produce any documents to receive the unemployment advance.

Steps for Withdrawing EPF

Employees can make a PF withdrawal claim by following the processes outlined below on the EPFO member portal. Employees who have seeded their Aadhaar card details with their UAN account do not need their employer’s attestation to make a PF withdrawal.

  • Visit the member portal of the EPFO
  • Under the menu stating “Our Services,” select the option stating “For Employees”
  • Click the option stating “Member UAN/Online Service (OCS/OTCP)” under the available tab stating “Services”, in the  “For Employees” page
  • Now in the next website opened, use your UAN, password, and Captcha code to access the portal
  • Under the menu stating “Manage,” select the option stating “KYC”
  • You will be sent to a different website. Check your KYC details by scrolling down to the bottom of the page to the “Digitally Approved KYC” section.
  • If all of the KYC details are accurate, click the “Online Service” link from the top menu to proceed with the withdrawal
  • From the available drop-down menu, select the option stating “CLAIM (FORM-31, 19, and 10C)”
  • You’ll be taken to a new page with an “ONLINE CLAIM (FORM 31, 19 & 10C)” form that was generated automatically
  • You will be asked to input, validate your registered bank account number
  • A “Certificate of Undertaking” will be generated after the bank account has been verified. To continue, click “Yes” on the certificate pop-up
  • When prompted, select the option stating “Proceed for Online Claim”
  • Select the “PF ADVANCE (FORM – 31)” option from the drop-down menu next to the “I wish to apply for” option for online fund withdrawal
  • A claim reason must be chosen from the drop-down menus adjacent to the “Purpose for which advance is required” option. It is also necessary to fill out the areas for the employee’s address and the amount of the advance
  • Submit your withdrawal request by checking the box at the bottom of the page
  • Certain scanned papers may be required to be uploaded (depends on the nature of withdrawal)
  • The withdrawal amount will be removed from the EPF account and put into the corresponding bank account once the employer authorizes the withdrawal request. You will receive an SMS message on your registered cellphone number once the claim has been settled
What is an Evidence

Types of Evidence | What is an Evidence and its Types?

Leave a Comment / Finance / By / February 21, 2024

Types Evidence: When it comes to hearing cases in the Court of law, Evidence acts as the only source to prove a crime. Evidence comes from the Latin word “evidere”, which translates to proof or show clearly the existence or happening of specific events. Evidence is considered an essential source of proving a crime in the Court of law.

The Indian constitution has a separate act for evidence, known as the Indian Evidence Act, which throws light on how and which evidence can be produced in front of the Court of Law while hearing a case. It also provides a list of all the acceptable or unacceptable evidence in the Court of Law. There are various types of evidence that are mentioned in the Indian Evidence Act. In this article, we will discuss each type of evidence in detail.

What is an Evidence?

Evidence can be defined as any element of information or fact that indicates the happening or occurrence of a specific event. Evidence means to show, prove, or discover facts of particular circumstances. Evidence acts as a strong source to prove the guilt and convict a person in the Court of Law.

Types of Evidence

As per the Indian Evidence Act, there are various types of Evidence depending on the case and circumstances. All the types of Evidence mentioned in the Indian Evidence Act are acceptable in the Court of Law. Let’s explore each type in detail.

Oral Evidence

Oral Evidence refers to all those statements of proof that witnesses give in the Court of Law. All the Oral evidence to be presented while hearing a case must be approved or mentioned in the Indian Evidence Act. Section 59 of the India Evidence Act states that all the statements except those mentioned in a document or present in electronic records can be considered Oral Evidence in the Court of Law.

Suppose witnesses cannot give their statement orally due to physical disabilities-,. In that case, there are provisions in the act that suggest those witnesses can give their statement in writing or any other way, which would fall under oral evidence. According to the Indian Evidence Act, oral evidence given in any other format by witnesses with speaking disorders cannot be dismissed or disbanded based on the non-submission of medical reports for such disability.

The Indian Evidence Act, in its section 60, suggests the following rules and regulations for a shred of Oral evidence:

  • If the proof or the act can be seen, the evidence must come from a person who says he/she has seen it.
  • If the proof or the act could be heard, the evidence must come from a person who says he/she has heard it.
  • If the proof or the act can be perceived by any other sense, then the evidence must come from a person who says he/she has felt or perceived it.
  • If the proof is based on opinion or on the ground to which the opinion is subjected, then the evidence must come from a person who holds those opinions on those grounds.

Documentary Evidence

According to an ancient Roman Proverb, spoken word vanishes, but written word remains. Similarly, written Documentary Evidence is given foremost priority than Oral Evidence in the Court of Law. Documentary Evidence is more believable or acceptable as it cannot be changed, unlike Oral evidence.

According to Section 3 of the Indian Evidence Act, documentary evidence refers to all those documents, including electronic documents or records submitted in the Courtroom for the verification or validity of a case. According to the Evidence laws, documents are divided into two categories; Public Documents and Private Documents.

The Evidence law even states that the contents of documentary evidence must be proved by producing the original document, which is called Primary Evidence. The contents can also be proved by producing supporting documents, which is called Secondary Evidence.

Now, the question is What is Primary and Secondary Evidence? Let’s discuss each one in detail.

Primary Evidence

According to section 62 of the Indian Evidence Act, Primary Evidence is that document that contains the original contents of the evidence. Primary Evidence is the most acceptable and superior evidence in the Court of Law. Primary Evidence is the Original content or document submitted in the Courtroom for verification of a hearing. Following are the key characteristics of Primary Evidence:

  • Primary Evidence must be an original copy of the document.
  • If a document is executed or implemented in several parts, each part is considered as the primary document of the evidence.
  • If a document is implemented in counterparts, each counter acts as a piece of Primary evidence against the parties signing it.
  • When a single process creates several documents from the original document, then they are considered as the copy of the original document and not as the Primary Evidence. For example, copies of original documents created by printing or photography.

Secondary Evidence

Secondary evidence is the supporting document presented before the Court of Law in the absence of the Primary Evidence. Section 63 of the Indian Evidence Act states the contents of Secondary Evidence, which are as follows:

  • Certified copies of the original document.
  • Copies of the original document made by mechanical process and compared with the original document.
  • Counterparts of the original document can act as evidence against parties who did not implement them.
  • Oral statement of the contents of the original document by a witness who saw the original document.

If any of the parties involved in a case want to prove a fact by using Secondary evidence, they must abide by the conditions mentioned in Section 65 of the Act. Section 65 of the Indian Evidence Act states that a fact can be proved by using Secondary Evidence in the following conditions:

  • If the primary document is in possession of a person against whom the fact is to be proved. It can also be proved if it is with any other person who is out of reach of the court, or it is in possession of a person who has not produced it before the Court even after due notice.
  • If the primary document is lost or destroyed.
  • If the primary evidence is of such a nature, it cannot be moved from one location to another.
  • If the existence, contents, or condition of the Primary evidence have been proven to be in writing.
  • If the Primary evidence is a Public Document proved by section 74.
  • If the Original or Primary evidence is a document of which, a certified copy is permissible.
  • If the Original or Primary document consists of various other documents, which does not concern the specific case.

Real Evidence

Real Evidence, also known as Physical Evidence, is the subject or facts that the Court can see or touch. Real Evidence includes objects or items that are physically presented before the Court of Law for inspection. Examples of real evidence can be fingerprints, blood samples, weapons or instruments used in the crime, or other physical objects. Real evidence has a superior advantage over any other form of evidence. However, the item of real evidence must be authentic.

Types of Evidence

Hearsay Evidence

Hearsay is another type of evidence that is considered as indirect evidence in the Court of Law. Hearsay evidence refers to statements given by witnesses that are not based on their personal knowledge or experience but on what they heard from others regarding the fact or case. The statement of such a witness is unacceptable to prove the validity of the fact.

Hearsay evidence is not acceptable in the Court of Law for the following reasons:

  • The person giving a Hearsay evidence may not be directly involved in the case or does not carry the responsibility to prove the fact.
  • In a Hearsay evidence, the truth vanishes or diminishes with each repetition of the evidence.
  • The evidence may be based on false rumours being spread to hide the validity of the fact.

However, there are certain exceptions to the Hearsay evidence, they are:

  • Section 6 of the Indian Evidence Act suggests that a statement of evidence can be proved through another person who is a witness to the statement as a part of the transaction issue.
  • Section 74 of the Indian Evidence Act states that the statement of a Public document such as official books or registers can be proved by producing the document; instead of producing the draftsman of such document.
  • Section 17 – Section 23 and Section 24 – Section 30 provide exceptions to Hearsay evidence on the grounds of Admission and Confession.
  • Section 32 (1) of the Indian Evidence Act states that the dying declaration of a dead person can be produced as a Hearsay evidence if the cause of death of such person comes into question.
  • Section 33 of the Indian Evidence Act states that statements of former proceedings are acceptable as Hearsay Evidence.

Direct Evidence

Direct evidence refers to that evidence that will prove the fact without the interpretation of the circumstances. It includes all those pieces of evidence directly related to a specific case and does not require the Judge to make assumptions to reach conclusions. For example, in a shoot-out case, the eyewitness who saw the accused fire at the victim can serve as Direct evidence. Footage of a security cam showing the proof of a crime can be direct evidence.

Circumstantial or Indirect Evidence

Circumstantial evidence, also known as Indirect evidence, refers to those objects or facts that rely on a medium of connection to reach the final conclusion in a case. An example of Indirect evidence can be a fingerprint obtained from the crime scene.

Circumstantial evidence plays a vital role in criminal and civil cases with a lack of Direct evidence.

In The End…

Pieces of evidence play a significant role in proving the happening or non-happening of specific events. They act as the guiding light in proving the guilt or innocence of a person convicted in a criminal case.