Checklist and documents required related to Employee

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Documents required related to Employee

1.  Personal Files:
                            Application Form
                            Doctors Certificate/Age proof
                            Fittness Certificate
                            Form-F for Gratuity Nomination
                            Form-25 for Nomination for EL With Photo
                            Induction Form
                            Increment Details
                            Training Details:Fire / First aid etc
                            Promotion/ Demotion Letter
                            Transfer Letter.
                            Appointment Letter.
                            Confirmation Letter.

2.  Employee's Hand Book
3.  Employee Leave Book
4. Identity Card issue Register
5. Employee Interview Register
6. Punching or Bio Matrix Card Register
7. Attendance Record
8. Punching Details
9. OverTime Record  & Punching Details
10. Overtime Approval 
11. Approval for Man Power
12. Muster Register.
13 .Payment of Bonus (Form-C )
14. Payment of Minimum Wages.
15. Accidents injury Registers & Intimation.
16. Leave Register. (Form-18)
17. Annual Census.
18. Register of Final Settlement.
19. Register for Payment of Gratuity.
20. Register of Penalties & Fines. (Form-21)
21.  Register for Advances (Form-22)
22. Adult Register
23. Employment Card (Form-14)
24. Register of Workmen (Form-13)
25. Annual & Half Yearly Returns
26. Register of ESI & PF allottment Number
27. Acknowledement-Wage issue Slip
28. Register for Payment of Incentives, Attandance Bonus etc
29. Esi Registration Certificate for Establishment.
30. EPF Registration Certificate for Establishment.
31. Details of Children enrolled in Creech.
32. Avoid Overlaping of Shifts.
33. Esi & PF Challan Payments
34  Declaration Form & Nomiantion Form
35. Voulantary Declaration from Each Employee for Work on Sunday or holiday
36.Comp off Intimation Letter to Inspector of Factories.
37. Worker Training Record

Checklist / documents related to employee benefits

1.  Esi Benefits Such as Maternity Leave/ESI Leave , Treatment  &  Payment Wages to Workers & Dependents Medical Treatment
2.  PF -Pension & Provident Fund to Employees Securing retirement of Employees or their Dependents.
3.  Payment of Gratuity Completed Continous 5 years of Service , or Person Permanantely disabled or Expired than they will get Benefits till 58 years.
4.  Payment of Leave Encashment to workers for unavialed Leave accumulated to the extent of 30 days. 
5.  Payment of Bonus to employees 8.33% upto 20% of Basic wages & Minimum of Rs.100/- 
6.  Payment of Incentives & Attandance bonus for Increasing effeciency of hourly production & Reduce absentisem
7.  Employer Contribution to ESI @4.75%  & PF 12%
8.  Maternity benefit non esi covered employees.

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Checklist and documents required for factories or shop establishment

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Steps for Factories or Shop Establishment 

1. Business Registration Certificate or License or Registration under Shops & Establishment Act
2.  Local Municpal or Corporation Certificate
3. Display Related to Factory , Address Detail ,Factory Manager , Weekly off ,Working Hour ,Approved strength etc
4.  Display of Factrory Layout of Each Floor , Entry & Emergrncy Exit of Factory.
5.  Providing & Display of Facilities-Drinking Water ,Spittons , Medicines or First aid kits ,Toilets ,Canteen ,Creech ,Doctors Room ,Welfare Officer ,Safety Officer & Fire Extinglishers etc
6.  Certified Factory Plan -Given while Factory Registration
7.  Approval of Manpower
8.  Approval of Overtime or Weekly off Working.
9.  NOC from Pollution Control Board.
10.  NOC from Fire Department.
11.  Certificate from Boiler Department.
12.  Factory Opening & Closing Register.
13.  Machinery List.
14.  Employees Standing Order.
15.  Organisation Chart
Other Related Records


1.Vat certificate issued by commercial tax
2.Service Tax Certificate issued by Central Excise Dept
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Checklist for Monthly Accounts Closing

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Monthly Closing of Accounts - Check points

1 Vendor Invoice Posting 
2 Amortization of Prepaid Exp
3 Insurance of Fixed Assets (If Any)
4 Cash Balance Confirmation
5 Sales invoice raising
6 Sales invoice accounting
7 Bank Reconciliation
8 Intercompany Reconciliation
9 Loans Reconciliation
10 Stock reconciliation
11 Fixed asset posting
12 Depreciation Run
13 Provisions
14 Investment (FD / MF / Others)
15 Interest Calculation of Loans / OD / CC
16 Vendor Advance Followup
17 Interest on Investment
18 Interest on Debenture
19 Balance Sheet & P&L
20 Bank Guarantee Confirmation



Post Closure Activities

1 Cash Certificates
2 Balance Confirmations of all Banks
3 Schedules Investment viz MF, FD etc
4 Statement for Income from MF
5 Statement for Income from FD
6 Stock Statement
7 Fixed Assets Register
8 Details of Capital Work in Progress
9 Working for contract work in progress
10 Debtors- party wise invoice wise listing along with ageing and subsequent realisation
11 Reconciliaiton of PF PT deducted and remitted
12 Details of additions and deletions of assets
13 Schedule for Advances to Suppliers
14 Details of deposits - along with supporting for movement in Current Quarter
15 Balances with custom and excise authorities - returns filed
16 Creditors - party wise invoice wise listing along with ageing and subsequent payments
17 Break up for TDS Receivable
18 Schedules for Prepaid expenses
19 Schedules for Loans to Employees
20 Schedules for Statutory Liabilities
21 Balance Confirmations of Vendor& Customer  Balances
22 Related Party Transactions - Inter Group Transacitons
23 Balance Confirmations of Inter company balances
24 Employee loan a/c recon
25 Schedules of Stat liabilities
26 Listing of Related party transactions
27 Profit & Loss Account
28 Breakup for Revenues
29 Schedules for expenses
30 Reconciliation of Pay Roll Register with FI GLs
31 Payroll register month wise
32 Break up for Lease Rent and Hire charges

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Wealth Tax Return

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Applicability of Wealth Tax Return:

Every Individual, Hindu Undivided Family and Company whose net wealth exceeds the maximum amount which is not chargeable to wealth tax in any previous year ending of 31st March is liable to file the wealth tax return. The maximum limit of net wealth not chargeable to tax under the provisions of the Wealth tax Act, 1957 is Rs. 30 lakhs at present.

This provision does not apply to– 
a. Company registered U/s 25 of the companies Act, 1956,
b. Co­operative society,
c. Any social club,
d. Any political party,
e. Any mutual fund U/s 10(23D),
f. RBI.

Assets liable to wealth tax:
Buildings or land other than one house property or a plot of land having area of 500 square meters or less.
Motor Cars, Yachts, boats and aircrafts.
Jewellery.
Bullion, furniture, utensils or any other, article made wholly or partly of gold, silver, platinum or any other previous metal.
Urban land.
Cash on hand – in excess of Rs. 50,000/- in case of individual and HUF and in case of Company unrecorded cash.
Note: 
Wealth tax is not levied on productive assets; hence investments in shares, debentures, UTI, mutual funds, etc are exempt from it.
Wealth Tax Rate:
Wealth Tax is charged @ 1% of the amount by which the net wealth exceeds Rs. 30 lakhs.

Filing of Wealth Tax Return:
The Wealth Tax return for Individuals, Hindu Undivided Families and Companies is to be filed in Form BA in respect of Assessment Year 2013-14 and earlier.
The Wealth Tax return for Individuals, Hindu Undivided Families and Companies is to be filed in Form BB in respect of Assessment Year 2014-15 and subsequent assessment year.

For the assessment year 2014-15 and subsequent assessment year, the return of wealth tax shall be furnished electronically under digital signature.
In case of Individual and HUF to whom provision of 44AB of Income tax is not applicable may furnished for assessment year 2014-15 in paper form.

Value of assets for an assessment year is to be declared as on the relevant Valuation Date i.e. 31st March of each year. Thus, for the assessment year 2013-14, the valuation date will be 31.3.2013.
The due dates for filing of Wealth Tax return are the same as the due dates for filing of Income Tax return (i.e. if the assessee is liable to audit, the due date will be 30th September and in other cases the due date will be 31st July.

Valuation of Assets:
Other than cash, is to be determined on the basis of the rules of Schedule III. The details of calculation of the value of each asset under the relevant rule of this schedule should be attached with the return. Also, wherever any rule of this schedule prescribes that a particular document in support of the valuation is to be attached with the return, the same must be attached.
The assessee must sign all attached documents.

Immovable Property:
Furnish in the given columns the details of all immovable properties held by the assessee, including agricultural land whether located in or outside India and whether assessable or exempt.
Details of similar assets belonging to any other person but includible in net wealth of the assessee should be given.
Value of immovable property should be declared as per rule 3 to 8, 20 and 21 of Schedule III. Where the assets are held as assets of business for which accounts are maintained regularly, the valuation should be done as per rule 14 of this Schedule.
Movable Property:
Furnish in the given columns the details of all movable property held by the assessee, including those mentioned in, Section 2(e) which are not assets for purposes of the Wealth tax Act, whether located in India or outside India, whether assessable or exempt under section 5.
Detail of similar assets belonging to any other person, but includible in the net wealth of the assessee under section 4 of Wealth Tax Act.
Value of movable property should be declared as per rules 1, 2 and 17 to 21 of Schedule III. Where the assets are held as assets of business for which accounts are maintained regularly, the valuation should be done as per rule 14 of Schedule III.
Held as Assets other than in Business or Profession:
Indicate amount of cash in hand.
Indicate the form of gold, silver, platinum or other precious metal, its gross and net weight in grams and its value as per rule 20 of Schedule III. Valuation of jewellery is to be done as per rules 18 and 19 of Schedule III. In support of the valuation of jewellery; the prescribed form to be attached with the return is:-
Where the value of the jewellery on the valuation date is upto Rs. 5 lakhs, a statement in Form No. 0-8A as prescribed by Rule 13 (c), signed by the assessee, or
Where the value of the jewellery on the valuation date exceeds Rs. 5 lakhs, a report of Registered Valuer in Form 0-8, as prescribed by rule 8D.
Held as Assets in Business or Profession:
Indicate in the given column details of movable properties held as assets of business or profession carried on by the assessee as proprietor.
Indicate here the value of each asset as calculated on the basis of the provisions of the relevant rule of Schedule III.
A copy of the balance sheet or trial balance as on the valuation date and a copy of the auditor's report if any, must be attached.

Where the assets are held as assets of business for which accounts are maintained regularly, rule 14 of Schedule III will apply for purposes of valuation. Give the description of movable property and also of claimed exemptions.
After showing such assets, if any as the case may be, these should be claimed as exempt.

The amount of tax, penalty or interest payable in consequence of any order passed under certain Direct Taxes Acts, which is outstanding on the valuation date, and
If the amount is disputed in appeal, revision or other proceedings, or
Though not disputed as above, if the amount is outstanding for more than 12 months on the valuation date, it should be clearly indicated.
Indicate the net amount of debt, which is deductible in the computation of net wealth. Indicate in the given columns details, in respect of the following debts:-
1. Those which are secured or incurred in relation to assets other than assets of business of profession carried on by the assessee, and
2. Those which are not related to any asset, e.g. a loan taken for purposes of marriage or education of children or any other personal loans.
Other General points to be remembered:
There should be no corrections or overwriting and it should be properly signed and verified by the person who is authorized to do so under the provisions of Income Tax Act.

The permanent Account Number (PAN) given to the taxpayer and under the Income-tax Act, 1961 and Ward/Circle/Range are to be quoted here.

All parts and Columns must be filled in. If any part or column does not apply, please mention NA (Not Applicable) and do not put any other mark or symbol.
In case space provided under any item of the Return Form is found insufficient, then give computation in respect of such item on separate sheet(s) using the columns indicated for that purpose under the said item in the return Form and attach that to the return. The sum totals of such computation done should be indicated in the columns provided under the relevant item in the Return Form.
Similarly, any other information asked for in the, Form, which cannot be completely furnished on account of paucity of space, maybe furnished on a separate sheet.

Statement of Taxes:
Wealth-tax payable on the net wealth arrived at is to be indicated. The tax should be calculated according to the rates specified in Part I of Schedule I. Indicate interest chargeable for late filing of return. The net tax/interest payable or refund due, as the case may be, is to be indicated.
List of Documents / Statements Attached:
Please give complete particulars of documents attached to the return of Wealth.
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Form 15G - 15H

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Basic points
No TDS to be deducted by bank in case of –
  i) Interest on saving bank account.
 ii) Recurring deposits.

Bank deducts TDS on interest payment of fixed deposit u/s 194 A.

(As per sec 194 A for payment of interest other than on securities, bank deducts 10% TDS, if payment exceed Rs. 10000 p.a.)

Form no. 15G and 15H are to be submitted every year with bank. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.

Form 15G/15H is a self declaration form, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year will be NIL.



Assessee should submit these forms before the end of financial year or before first payment of interest whichever is earlier.

All banks and financial institutions will deduct TDS if payment of interest on fixed deposits exceeds Rs. 10000 during the financial year.

Bank will issue TDS certificate also called form 16A which mentions the details of TDS payments with the government.

The limit of Rs. 10000 is applicable for each branch of a bank. So each branch of the bank will see whether the interest of the whole year on all the FDs exceeds the threshold of 10000.

If a person is making FD in different branches of same bank then these forms should be deposited at each and every branch where the deposit has been made. For example, if Mr. Ashish has made deposits at three different branches of SBI, then he has to submit the Forms at each branch separately. 

In case of FDs made for longer duration where interest on the FD to be paid on maturity, bank will deduct TDS on interest accrued for the year.

Please ensure to mention Permanent Account Number (PAN) on the forms while submitting form No. 15G or 15H. In case, taxpayer fails to provide PAN to the deductor, the tax would be deductible @ 20%.

These Forms are to be submitted in duplicate, one of which is forwarded to the IT department.

These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units. For other types of payments (like brokerage, rent etc), these forms cannot be used.

A bank can track you using unique customer ID. If the combined interest in all the branches of bank exceeds the threshold limit of Rs. 10000, TDS will be deducted if you have not filed form 15G/15H. Therefore, it is best to provide the form then to risk TDS. They can then reclaim the amount by filing their tax returns. The second option is to split fixed deposit across several banks and branches so that TDS exemption limit is not breached.

Difference between 15G and 15H-


Form 15GForm 15H
Submitted by individual below the age of 60 years.Submitted by senior citizens(60 or above 60 year)
Can be submitted by HUF also.By individuals only (senior citizens).
Two conditions:One condition:
§  The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and§  The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
§  The aggregate amount of interest income etc. received during the financial year from all sources should not exceed the basic exemption limit for that relevant year.Can be submitted by the senior citizen even though the total interest amount from the payer may exceed Rs. 3.0 Lacs (i.e., the limit of basic exemption limit).
·         Can be submitted by residents only.·         Can be submitted by residents only.

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Checklist for External Commercial Borrowings (FEMA)

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External Commercial Borrowings


Whether the transaction falls under Automatic Route ?
Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USD ?
Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USD
Is the ECB from indirect equity holders?

Whether the ECB proceeds repatriated to India?



S.No.ParticularsObservationsCommentsRemarks
1Whether the transaction falls under Automatic RouteIf not, approval from RBI required
2Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
3Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
4Is the ECB from indirect equity holdersIf yes, atleast 51% holding in the Indian Company required
4Whether the ECB proceeds repatriated to India
ACertain Condition for raising ECB
1Maximum Amount of ECB which can be raised by a corporate other than those in hotel, hospital and software sectors and corporates in miscellaneous service sector.upto USD 750 million or equivalent during a FY
2Corporates in Service Sector viz. hotels, hospital and software sector and miscellaneous service sector.upto USD 200 million or its equivalent in a FY for permissible end used
3NGOs engaged in micro finance activities and Micro Finance Institutionsupto 10 million USD
4NBFC(s)-Infrasructure Finance Companiesupto 75% of their owned funds, hedging 75% of their currency risk exposure
5NBFC(s)-Asset Finance Companiesupto 75% of their owned funds, max. of USD 200 million per FY, min maturity of 5 years, hedging full currency risk
6SIDBIupto USD 20 million
BDocuments required by Overseas Organisation/ Individual
a)Due Diligence Certificate from an overseas bankShould be adhering to the Financial Action Task Force Guidelines
b)Audited Statement of Accounts
c)Income Tax Returns
d)Signed Loan Agreement
B1Other Documents
a)NOC from bank for creation of charge
b)Loan Registartion number obtained from RBI
c)Copy of BR for issue of corporate guarantee from the company issuing such guarantee
d)Copy of form FC-GPRIn case of conversion of ECB into equity
e)Form ECB-2within 7 working days to the close of month to which it relates
h)Copy of Form 83For allotment of LRN
i)CTC(s) of the meetings for allotment of equity shares
j)Bank Details
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Maternity Benefit Act 1961

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Coverage of the  Maternity Benefit Act
Upon all women employees either employed directly or through contractor except domestic women employees employed in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore, if the State Government decides to apply this Act to women employees in shops and commercial establishments, they also will get the benefit of this Act. Bihar, Punjab Haryana, West Bengal, U.P., Orissa and Andhra have done so.



Conditions for eligibility of benefits
Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months
immediately proceeding the date of her expected delivery

Cash Benefits
• Leave with average pay for six weeks before the delivery.
• Leave with average pay for six weeks after the delivery.
• A medical bonus of Rs.25 if the employer does not provide free medical care to the woman.
• An additional leave with pay up to one month if the woman shows proof of illness due to the
pregnancy, delivery, miscarriage, or premature birth.
• In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
Non Cash Benefits/Privilege
• Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if
she asks for it.
• Two nursing breaks in the course of her daily work until the child is 15 months old.
• No discharge or dismissal while she is on maternity leave.
• No change to her disadvantage in any of the conditions of her employment while on maternity
leave.
• Pregnant women discharged or dismissed may still claim maternity benefit from the employer.
Exception: Women dismissed for gross misconduct lose their right under the Act for Maternity Benefit

Conditions for eligibility of benefits
• Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant.
• She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she can not take it herself.
• She should take the payment for the first six weeks before she goes on leave.
• She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child.
• She will be entitled to two nursing breaks of fifteen minutes each in the course of her daily work till her child is fifteen months old.
• Her employer cannot discharge her or change her conditions of service while she is on maternity leave.
Sec. 5

Prohibition of dismissal during absence of pregnancy
• Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a day that the notice will expire during such absence or to very her disadvantage.
• Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.
• At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc.
• Not barred in case of dismissal for cross misconduct.

Forfeiture of maternity benefit
If permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period.
For discharging or dismissing such a woman during or on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and will find, but not exceeding Rs.5, 000.

Failure to Display Extract of Act
Imprisonment may extend to one year or fine.

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