New Epf Pension Calculation Formula

EPFO Higher pension New Guidelines: Here’s what the EPFO says while more details are awaited. Latest news to know about EPFO Higher Pension form, circular, guidelines, calculator how to get.

Employees’ Provident Fund Organisation, India Ministry of Labour & Employment, Govrnment of India. EDLI Benefit Calculator; Pension Calculator; The calculations shown here are only illustrative in nature and based on the data entered by the user and can not be used as a basis of any legal case/litigation.

Calculation of EPS pension Kasturirangan says, “The formula to calculate the EPS pension is as follows: Monthly pension amount= (Pensionable salary X pensionable service)/70. ” Pensionable service: This refers to the number of years for which contributions were made to the EPS account.

What is EPF Pension: Maximum Pension Under EPS + Calculation Formula

The members can able to apply for the Pensions right after the date of completion of age 58 years. Under EPS the maximum pension that the member can get is limited to INR 7,500 /month.

So Mr X’s pension from 2 Jun 2030 will be Rs3000 (i. 15,000 X 14)/70 ) Example 2: Mr X renders maximum employment of 35 years, and maximum contribution of Rs15000, the maximum amount of pension as per the Pension formula would be = 15000 * 35/70 = Rs7,500 per month or Rs 90,000 (7500 * 12) per year.

How to use epfo circular: EPFO issues circular on higher pension, clarifies which

The Employees Provident Fund Organisation (EPFO) has issued a circular on December 29, 2022 on who can get higher pension and the process to apply for higher pension. The new circular is issued to comply with the instructions issued by the Supreme Cort in its jdugement dated November 4, 2022.

Procedure for calculation of Total Aggregate Pension . Add the Past Service Pension and the Formula Pension .

The Employee’s Pension Scheme (EPS) was introduced in the year 1995 with the main aim of helping employees in the organised sector. All employees who are eligible for the Employees Provident Fund (EPF) scheme will also be eligible for EPS.

As per the formula of the new pension calculator employees can withdraw EPF amount By calculating your 3 times basic salary or 75% of pension employee share this is done By sending a request for EPF amount withdrawal the highest may be sent by settlement.

GST team raided: Murda was doing business for 11 months, cleverness caught in the investigation

A late businessman was doing business for 11 months in Partaval of Maharajganj. Purchased Rs 11.73 lakh from his firm through 13 e way bill. The GST team has detected tax evasion and mismanagement in the investigation. Not only this, the firm was also being run in the name of the deceased’s wife. A fine of five lakh rupees has been imposed for finding disturbances in its stock.

The Goods and Services Tax SIB team had received information that large scale tax evasion was going on in a garment shop at Paratawal in Maharajganj. In the last six months, the GST team was collecting evidence by doing Reiki at the said shop on festivals and other occasions.

When the shop was inspected on Monday under the leadership of Deputy Commissioner Sunil Verma, it was found that the registration of the shop was in the name of the proprietor Shamshul Haque. Haq passed away in March 2022, but no legal action was taken by the family in this regard.

For example, the name of the firm, name of the proprietor, account number etc. have not been changed. The business continued under the old name and address and account number. The firm has issued e-way bills by booking garments in bulk from traders in Lucknow and Kanpur, apart from Gorakhpur.

At the same time, another establishment was also found at the same place. Another firm was being operated in the name of Shamshul Haq’s wife Najra Khatoon. During the course of investigation in this firm, there was no physical evidence of stock being kept in the shop along with the sale. GST has imposed a fine of Rs 5 lakh on this firm. Dialogue

Help of district administration had to be taken at the time of action

Additional Commissioner Grade One Vimal Kumar Rai said that two firms of Maharajganj were being monitored. A firm was carrying on business in the name of the deceased proprietor. In the second firm, the business was going on in the name of the wife of the deceased. Action has been taken as per rules.

When the GST team reached the businessman’s premises in Partaval for action, a crowd gathered. The team had gone to investigate on behalf of GST in six vehicles. Suddenly seeing themselves surrounded, the GST team sought cooperation from the district administration. DM and SDM supported the GST team by sending teams.

It is wrong to do business in the name of the deceased.
Doing business in the name of a deceased person is wrong. A GST official told that if business is being done in the name of the deceased, then it comes under the category of economic offense along with another businessman. For example, bought and sold lakhs of rupees from another trader in the name of the firm. In return, the firm can refuse while recovering that amount from the deceased. After this the matter may come to fraud and forgery.

NFRA interacts with Life Insurance Industry on AS 117 for accounting for insurance contracts

The Executive Body of National Financial Reporting Authority (NFRA) held interaction with members from Life Insurance Industry yesterday to discuss the proposed changes that Ind AS 117 seeks to bring to accounting for insurance contracts. Representatives from IRDAI also participated.

IndAS 117 is based on high quality global standard IFRS 17, Insurance Contracts issued by the International Accounting Standard Board of IFRS Foundation. IFRS 17 which was originally issued in May 2017 has become globally effective from 1 January 2023. It is expected to help investors and others better understand insurers’ risk exposure, profitability and financial position.

NFRA received the ICAI proposal for IndAS 117, along with the results of public consultations carried out since 2018. Several Life Insurance Entities had offered their comments on the exposure drafts issued by ICAI. Ind AS 117 is specifically designed to capture the unique features of the insurance and investment contracts of the Insurance Entities and introduces a paradigm shift in the measurement, presentation and disclosures in the financial statements of the Insurance Entities.

Dr Ajay Bhushan Pandey, Chairperson NFRA emphasized the central role played by the Insurance Industry in the global economy; he said that based on an IASB study, with US$13 trillion in assets, insurers account for 12 per cent of the total assets of listed companies in 2015. Given the importance of the insurance sector, it was important to appreciate the practices and standards followed by the Industry and the expected benefits of their convergence with international standards and best practices.

Fruitful deliberations were held wherein representatives from IRDAI and members from the Life Insurance Industry provided valuable insights into the intricacies of the proposed Ind AS 117 and the wide consultations, capacity building and knowledge sharing efforts that are being carried out towards preparedness and to equip companies and professionals (accounting, actuaries and technology teams) to handle change.

Big Six income-tax exemptions that even the new Income-tax regime allows

new tax regime may have been introduced as a simpler, less-cumbersome-paperwork alternative to tax-payers, but it is not completely devoid of tax relief.

Financial year 2023-24 onwards, the new regime is set to be the default tax system. That is, the rates and rules under this system will be applicable unless you expressly choose the older regime, which offers various exemptions.

official tax calculator launched recently by the income tax department is a handy guide for individuals to choose the regime with lower tax liability.

However, before making the final decision, you also need to be aware of the exemptions that you will be entitled to even under the new tax regime. Here are six such tax exemptions under the new regime (as also the older regime).

Standard deduction of Rs 50,000

Introduced in Budget 2023 to make the new regime more appealing to taxpayers, this is the most well-known tax benefit offered under the system. It is offered by default; that is, you do not have to take any measures or show proof to claim this deduction.

However, not all taxpayers are eligible for this benefit. As in the case of the older regime, it is restricted to salaried employees and pensioners. Businesspersons or self-employed professionals cannot avail of this tax break. Family pensioners (who receive pensions after the death of the retiree entitled to pensions) can also claim this deduction.

Employers’ contribution to employees’ NPS

This is among the lesser-known tax benefits, and available under both regimes. While other National Pension System-linked tax deductions — Rs 1.5 lakh under section 80C of up and Rs 50,000 under 80CCD (1B) — do not find a place in the new regime’s scheme of things, this deduction is retained.

An employer’s contribution to the National Pension System (NPS) up to 10 percent (14 percent of government employees) of an employee’s basic pay plus dearness allowance is allowed as a deduction under section 80CCD(2). “This amount provided by the employer is exempt from tax, like house rent allowance and other allowances,” says Kuldip Kumar, personal tax expert and former National Leader, Global Mobility Practice, PwC India.

However, the tax-free limit on benefits received from employers is capped at Rs 7.5 lakh a year. If the total benefits breach this cap, the excess amount will be treated as employees’ taxable perquisites.

“Those who land new jobs now should make it a point to negotiate hard to include this benefit in their cost-to-company (CTC) package. Existing employees, too, can renegotiate with their employers and HR to restructure their salaries so as to avail of this benefit from the new financial year,” says Sudhir Kaushik, Co-founder and CEO, TaxSpanner.com, a tax consulting firm.

Employers’ EPF contribution of up to 12 percent of basic salary

Your employer contributes 12 percent of your basic salary to your employees’ provident fund (EPF) account. This amount, too, is exempt from tax as long as the aggregate retirement benefits that you receive from your employer do not cross the Rs 7.5-lakh limit in a year.

Tax exemption on life insurance maturity proceeds

Besides gullible policyholders who fall for dubious sales pitches, investment-cum-insurance life policies are often preferred by high networth individuals, who see tax-free maturity proceeds as a huge plus. Again, this benefit is available under both the regimes.

However, it comes with certain caveats, if you have bought policies that come bundled with an investment, such as a unit-linked insurance policy (Ulip) or an endowment plan.

From financial year 2021-22, the government has introduced restrictions on maturity proceeds of Ulips. So, if you pay aggregate premiums of over Rs 2.5 lakh on policies purchased after February 1, 2021, the maturity proceeds will attract tax. Budget 2023 has extended similar restrictions to traditional non-Ulip policies, largely endowment plans. If the aggregate premiums of such policies bought post April 1, 2023 exceed Rs 5 lakh, the income earned at the end of the tenure will be subject to tax.

In all cases, proceeds received by nominated family members on the policyholder’s death are not taxable.

Standard deduction on rental income

If you own a property that you have rented out, you can claim a standard deduction of 30 percent against your let-out property’s annual value.

Put simply, annual value is the gross annual value (actual rent or reasonable rent as per market rates) minus municipal taxes paid.

PPF or Sukanya Samriddhi Yojna maturity proceeds

You will not have to pay tax on maturity proceeds from investments made in the public provident fund (PPF) and Sukanya Samriddhi Yojana. However, under the new regime, investments made in these accounts will not be eligible for section 80C deductions up to Rs 1.5 lakh that the old regime provides.

Form 26AS to display only TDS and TCS data

Form 26AS will only display details of tax collected at source (TCS) and tax deducted at source (TDS) from the assessment year 2023-24 onwards, the income tax department has said. Currently, Form 26AS also shows the details of advance tax paid by assesses along with the self assessment tax, income tax refund and turnover as per GSTR-3B besides TDS and TCS. Now these details would be available on the annual information statement (AIS) on the income tax e-filing website.

Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm, said: “This may help in making the return filing process fully compliant as AIS is more comprehensive where all the transactions entered by the taxpayer are reflected irrespective of whether applicable tax has been deducted or not.

However, it would be interesting to see if a taxpayer would be able to submit the feedback to such transactions, which were earlier in form 26AS and whether the same will be updated on a real time basis. It will also be cumbersome for the taxpayers since they will have to look at two set of documents now to file the tax return.” Chetan Daga, chartered accountant and founder at AdvantEdge Consulting said the income tax department is planning to migrate the taxpayer information from the Form 26AS to AIS.

Cabinet approves the extension of the term of the Twenty-second Law Commission of India upto 31st August, 2024

The Union Cabinet chaired by Hon’ble Prime Minister Shri Narendra Modi, approved the extension of the term of the Twenty-second Law Commission of India upto 31^st August, 2024.

The Law Commission of India is a non-statutory body, constituted by the Government of India from time to time. The Commission was originally constituted in 1955 and is re-constituted from time to time. The tenure of present Twenty-second Law Commission of India ends on 20th February, 2023.

The various Law Commission have been able to make important contribution towards the progressive development and codification of Law of the country. The Law Commission has so far submitted 277 Reports.

The Chairperson and Members of the Twenty-second Law Commission have joined office recently and have taken up several pending projects for examination and report, being the work in progress. Therefore, the tenure of the Twenty-second Law Commission has been extended upto 31st August, 2024. It will consist of the same composition, which is as under:

(a) a full-time Chairperson;

(b) four full-time Members (including Member-Secretary)

(d) Secretary, Legislative Department as ex officio Member; and

(e) Not more than five part-time Members.

The Law Commission during its extended term shall continue to discharge its existing responsibility, as bestowed upon it by order dated 21.02.2020, which, among other things, includes: –

(a) identification of laws which are no longer relevant and recommending for the repeal of obsolete and unnecessary enactments;

(b) suggesting enactment of new legislations as may be necessary to implement the Directive Principles and to attain the objectives set out in the Preamble of the Constitution;

(c) Considering and conveying to the Government its views on any subject relating to law and judicial administration that may be specifically referred to it by the Government through Ministry of Law & Justice (Department of Legal Affairs);

(d) Considering the requests for providing research to any foreign countries as may be referred to it by the Government through Ministry of Law & Justice (Department of Legal Affairs);

(e) preparing and submitting to the Central Government, from time to time, reports on all issues, matters, studies and research undertaken by it and recommending such reports for effective measures to be taken by the Union or any State; and

(f) performing such other functions as may be assigned to it by the Central Government from time to time.

Income-tax Act, 1961, it is mandatory for all PAN holders, Alert of Income Tax Department

As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not come under the exempt category, to link their PAN with Aadhaar before 31.3.2023.
From 1.4.2023, the unlinked PAN shall become inoperative. Link it before it’s too late.
Pl don’t delay, link it today!

Link Aadhaar User Manual

Step-by-Step Guide:

Step:1	Payment of applicable fee either on e-Filing Portal using “e-Pay Tax” service or if bank account is not authorised for payment through e-Pay tax, then payment to be done through Protean (NSDL) Portal under major head (021) and minor head (500).
Step:2	Submit the Aadhaar PAN link request on e-Filling Portal, either immediately if payment is made through e-Pay Tax service or after 4-5 working days of making of payment if payment is done on Protean (NSDL).

There are two main steps for Linking Aadhaar with PAN:

Step:1

Payment of applicable fee on e-filing Portal either using “e-pay Tax Service” or on Protean (NSDL) Portal under major head (021) and minor head (500).

Note: Use “e-Pay Tax service” for payment of fee if you have account in Banks which are Authorised for payment through “e-Pay Tax” otherwise use Protean (NSDL) Portal for payment of fee.

Banks authorized for e-Pay Tax: Axis Bank, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, Federal Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, UCO Bank Union Bank of India. (as on 13.01.2023)

3. How to make payment of Aadhaar Pan link fee on e-Filing or Protean (NSDL) Portal

If you have an account in the Bank which is authorised for e-Pay Tax, please follow below steps:

Step:1(a) Visit e-Filing Portal Home page and click on Link Aadhaar in Quick Links section. Alternatively, login to e-filing portal and Click on Link Aadhar in Profile Section.

Steps for Aadhaar PAN linkage in Pre-login are detail below

New Income Tax Rules 2023: Taxpayers opting for new tax regime are required to forego various deductions and exemptions available under the old tax regime

Benefits granted

Increased exemption limit from Rs. 2,50,000 to 3,00,000
Increased rebate from Rs. 12,500 to Rs. 25,000 (where income does not exceed Rs. 7,00,000)
Reduction of the maximum marginal rate from 42.74% to 39.00%
Relief in tax rates by increasing the tax slabs as under:

New Income Tax Slabs 2023-24

Benefits forgone

However, taxpayers opting for new tax regime are required to forego various deductions and exemptions available under the old tax regime. Some deductions/ exemptions majorly claimed under old tax regime are as under:

Leave travel concession
House rent allowance
Standard deduction (where income does not exceed Rs. 15,50,000)
Interest on loan for house property up to Rs. 2,00,000
Deduction in respect of life insurance premium, provident fund, public provident fund, equity linked saving scheme up to Rs. 1,50,000
Contribution to NPS up to Rs. 50,000
Mediclaim premium up to Rs. 25,000/ 75,000
Deduction in respect of rent paid up to Rs. 5,000 per month
Donation to charitable trusts
Contribution to political parties

But is it really lucrative to opt for the new tax regime? We have analysed various situations to understand the implications/ breakeven point for opting for new tax regime.

Assumptions:

Calculation is done for a non-senior citizen resident taxpayer.
Taxpayer has salary income only.

Is the new income tax regime beneficial?

As evident from the table above, a middle-class taxpayer claiming deduction/exemption exceeding Rs. 3,75,000 may not benefit by opting for the new tax regime.

Standard deduction

The Budget proposed the extension of standard deduction to taxpayers opting for new tax regime where income exceeds Rs. 15,50,000. However, this is not evident from the fine print in the Finance Bill, 2023, which may be rectified once the said Bill becomes an Act.

Default regime

It is evident from the Budget speech that the government is actively promoting the new tax regime, making it the default tax regime. Currently, the taxpayer is required to file an online application/ declaration to opt for new tax regime. From AY 2024-25 and onwards, if a taxpayer wants to opt for the old tax regime, he/ she will be required to file an application/ declaration and that too, on or before the due date to file the Income-tax return. If not, the taxpayer may not be able to opt for old tax regime.

Further, in case of a businessman/ professional, such option once exercised, shall apply to subsequent assessment years as well. In case of others, one can opt-in and out on a year-on-year basis.

Beneficial regime

Under the old tax regime, taxpayers can avail benefits/ deductions/ exemptions, by investing in specified tax saving investments. On the other hand, taxpayers can benefit from the reduced tax rates under the new tax regime, but they are unable to take advantage of the majority of deductions and exemptions. It seems that the new tax regime demotes the taxpayer to save/ invest in tax saving instruments, thereby making taxpayers spend more instead of making investments. This may result in a situation where a taxpayer may not have enough corpus at the time of retirement.

Therefore, from a tax perspective, one needs to calculate the tax liability under both the regimes and take a call. However, one must not forget to plan to secure his post retirement savings as well.

(Yogesh Shah is Partner, Deloitte India; Aparna Parelkar, Deloitte Haskins and Sells LLP and Darshin Haji, Deloitte Haskins and Sells LLP. Views are personal)

Author: team desk