Are you aware of these Top 5 EPFO Provident Fund account benefits?

Employees’ Provident Fund Organisation (EPFO) offers a variety of benefits to its members. Free insurance and pension coverage are among the Provident Fund’s perks. In general, an employee’s Provident Fund (PF) account is viewed as a retirement-oriented investment option, and it is required of any employee who meets the Rs 15000 monthly PF contribution threshold. Section 80C of the Income Tax Act exempts an employee’s PF contribution up to Rs 1.5 lakh in a single financial year from income tax.

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Employees should be informed of the following five primary points:-

1. Free insurance:

Under the EDLI, a Provident Fund Account holder is automatically liable for free insurance up to Rs 7 lakh in the event of death while serving (Employees Deposit Linked Insurance Scheme). The death cover for PF account holders was previously Rs 6 lakh, but it has now been increased to Rs 7 lakh. Most notably, the PF account holder would not have to pay any insurance premiums for the EDLI death cover.

2. Pension provision:

After 58 years, a PF account holder is still liable for a pension. To be eligible for a pension, however, a minimum of 15 years of daily monthly PF contributions must be made in one’s PF account. The pension gain comes from the employer’s contribution, which goes to the EPS account of the PF account holder for 8.33 percent of its contribution (out of a total of 12 percent).

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3. Loan against PF:

In the event of a financial emergency, a PF account holder may borrow against his or her PF balance, with an interest rate of only 1%. The loan will be for a limited time and must be repaid within 36 months of the date of disbursement.

4.Emergency partial withdrawal:

EPFO provides for partial withdrawal in the event of a medical or financial emergency, subject to certain terms and conditions.

How to navigate tax changes to protect your long-term money goals

5. Home loan and hole loan repayment:

An individual’s PF account may be used to repay a home loan. According to EPFO law, they can withdraw up to 90% of their PF balance for the purchase or construction of a house. They can also use their PF balance to purchase properties.

CBDT says ‘ non-neogtiable ‘ income tax shortages.

CBDT says non negotiable income tax shortages,instructing top brass to pull up their stocks to reach the  FY20 deadline

Tax collection deficit is not negotiable given a reduction in the corporate tax rate, and that this short fall of Rs 1.36 lakh crore needs to be recovered with extra effort.

After not being satisfied with the current rate of tax collection, the board of the Central Board of Direct Tax (CBDT) laid out a plan for change and set a target for the implementation of tax surveys for the respective regions.

The group, along with CBDT Chairman PC Modi, held a video conference with all divisions of Income Tax chief commissioners and other senior officials.

A source who attended the meeting said to Money

In the meeting, the CBDT claimed that this short fall of Rs 1.36 lakh crore needs to be recovered with extra effort.In Mumbai itself, the target of Rs 13.36 lakh crore for FY20 is expected to bring a short fall of Rs 32,000 crore.

CBDT has developed strategies to collect more tax in the next two months, including identifying those companies that have differences in the payment of good and service tax and income tax, and taking 20 per cent of that amount from those companies whose appeals are pending at the level of the Commissioner.At the CIT level, appeals worth around Rs 3.6 lakh crore are pending, from which 20 per cent of the money will go to the tax collection kitty.

 
 
 

Search and Capture under Income Tax

Who can Authorize Search and Seizure

Head Chief Commissioner/Principal Director General/Principal Commissioner/Principal Director/Director General/Director/Chief Commissioner/Commissioner/Additional Commissioner/Additional Director/Joint Director/Joint Commissioner.

Who can be Given Authorized to conduct search and Seizure

• Additional Director

• Additional Commissioner

• Joint Director

• Joint Commissioner

• Assistant Director

• Deputy Director

• Assistant Commissioner

• Deputy Commissioner

• Income-tax Officer

Powers Given to Authorized Officer

• To enter and look for any building, place, vessel, vehicle or air ship where he has enough reason to check that books of account, different documents, cash, bullion, jewelry or other important article or thing are kept

• Break open the lock of any entryway, box, storage, safe, almirah or different containers for practicing the powers presented above where the keys thereof are not accessible

• Search any individual who has out of, or is going to get into, or is in, the building, place, vessel, vehicle or air ship, if the approved official has reason to speculate that such individual has secreted about his individual any such books of record, different docs, cash, bullion, jewelry or other important article or thing.

• Require any individual who is seen as under possession or control of any books of record or different docs kept up as electronic record to bear the cost of the authorized official the essential facility to investigate such books of record or different reports

• Seize any such books of record, different documents, cash, bullion, jewelry or other important article or thing found because of such search. (However, bullion, jewelry or other important article or thing, being stock-in-exchange of the business, found because of the search will not be seized yet the approved official will make a note or inventory of such stock-in-exchange of the business).

• Place signs of ID on any books of record or different docs or make or cause to be made extracts or duplicates in this manner

• Make a note or an inventory of any such cash, bullion, jewelry or other significant article or thing.

• Where it is beyond the realm of imagination or practicable to take physical ownership of any significant article or thing and evacuate it to a sheltered spot because of its volume, weight or other physical attributes or because of its being of a risky nature, to serve a request on the proprietor or the individual who is in quick possession or control thereof that he will not expel, part with or generally manage it aside from with the earlier authorization of the authorized official. [With impact from 1-6-2003 the above point will not have any significant bearing in the event of any important article or thing, being stock-in-exchange of business]

Privileges of the person searched

• To see the warrant of authorisation appropriately marked and fixed by the giving position

• To confirm the identity of every individual from the hunt party

• To make individual pursuit of all individuals from the hunt party before the beginning of the inquiry and on finish of the hunt

• To demand individual pursuit of women being taken distinctly by woman, with severe respect to respectability

• To have at any rate two good and autonomous occupants of the territory, as witnesses

• A woman occupying an apartment being looked has a right to pull back before the hunt gathering enters, if, as per custom, she doesn’t show up out in the public

• To call a medicinal expert if there should be an occurrence of emergency

• To enable the kids to go to school, subsequent to handling their bags

• To have the office of having dinners, and so forth., at the ordinary time

• To examine the seals set on different repositories, fixed in course of search and consequently at the hour of reviving of the seals

• Every individual who is analyzed under area 132(4) has an option to guarantee that the realities so expressed by him have been recorded effectively

• To have a duplicate of the panchnama together with all the annexures

• To have a duplicate of any explanation that is utilized against him by the Department

• To have investigation of the held onto books of record, and so on., or to take removes along these lines within the sight of any of the approved officials or some other individual enabled by him

• To make an application questioning the endorsement given by the CIT for maintenance of books and records past 180 days from the date of the seizure

Duties of the person Searched

• To permit free and unhindered entrance into the premises

• To see the warrant of authorisation and put signature on the equivalent

• To distinguish all containers wherein resources or books of record and archives are kept and to hand over keys to such repositories to the approved official

• To distinguish and clarify the responsibility for resources, books of record and archives found in the premises

• To recognize each person in the premises and to disclose their relationship to the individual being looked. He ought not delude by personation. In the event that he cheats by professing to be some other individual or intentionally substitutes one individual for another, it is an offense culpable under segment 416 of the IPC

• Not to permit or empower the section of any unapproved individual into the premises

• Not to expel any article from its place without the notice or information of the approved official. On the off chance that he privileged insights or decimates any archive with the aim of keeping the equivalent from being delivered or utilized as a proof under the watchful eye of the Court or local official, he will be culpable with detainment or fine or both, as per segment 204 of the IPC

• To answer all questions honestly and to the best of his know-edge, he ought not enable any outsider to either meddle or incite while his announcement is being recorded by the approved official. In doing as such, he should remember that—

(I) If he will not respond to an inquiry regarding a matter pertinent to the pursuit activity, he will be culpable with detainment or fine or both, under area 179 of the IPC

(ii) Being legitimately bound by a pledge or insistence to express reality in the event that he owns a bogus expression, he will be culpable with detainment or fine or both under area 181 of the IPC

(iii) Similarly on the off chance that he gives proof which is false and which he knows or accepts to be false he is obligated to be rebuffed under area 191 of the IPC

• To fasten his mark on the recorded articulation, inventories and the panchnama

• To guarantee that harmony is kept up all through the length of the inquiry, and to co-work with the hunt party in all regards so the pursuit activity is closed at the most punctual and in a serene way

• Similar co-activity ought to be broadened even after the pursuit activity is finished, to empower the approved official to finish fundamental follow-up examinations at the soonest.

Inability to Comply with Section 132(1)(IIB)

Thorough detainment for a term which may reach out to 2 years and will likewise be at risk to fine.

Inability to Comply with Section 153A

Culpable under area 276CC.

Enquire with Certicom Consulting for further information or in case of any queries.