Body Existing provident fund (PF) accounts are likely to be divided into two parts from April 1 as per the new Income-tax (I-T) rules notified by the government last September. It highlights that employee's PF contribution of over ₹ 2.5 lakh annually is taxable. The main aim of the government by implementing these rules is to ensure high-earning people do not take advantage of government welfare schemes that are drafted for the less privileged. Listed below are the five important highlights regarding the revised I-T rules initiated by the government. PF accounts will be divided into two categories of taxable and non-taxable contribution accounts. The Central Board of Direct Taxes (CBDT) stated that the non-taxable accounts will embrace their closing account as it was on March 31, 2021. The CBDT formulates policy for the I-T department. The rules may come into effect from April 1, 2022, onwards as per the official sources. A new section 9D has been formed under the I-T rules to tax the employee's PF contribution that exceeds ₹ 2.5 lakh per annum. Two separate accounts would be maintained within the existing PF account to assess the person's taxable and non-taxable contribution.   Share on: */

Body A study revealed that the corporates in India are likely to hike the salary of their workforce by an average of 8.6% in 2022 as compared to 8% in 2021. According to the statistics, in 2020, only 60% of companies gave a pay hike that also of just 4.4%. Whereas, as per the latest reports, in 2021, 92% of companies gave an average increment of 8% to their employees. It is expected that the companies would offer a double-digit hike in 2022. Top performers of the organisation would be awarded a decent hike as compared to the average performers based on their skills and performance. The survey reveals that the IT sector will provide the highest hike rate, followed by the life sciences sector that will provide the second-highest hike. Retail, hospitality, infrastructure and real estate are estimated to provide the lowest rates of increments. The survey included testimonies from seasonal HR professionals from around 450 organisations.   Share on: */

Body In a major development, the Employees’ Provident Fund Organisation (EPFO) has announced to settle pension funds on the day of retirement of the employee instead of waiting for months and years. The announcement came from the labour minister who stated that members of the Employees’ Provident Funds (EPF) Scheme, 1952, and the Employees’ Pension Scheme (EPS) will get payment of the provident fund and pension on the retirement day itself. The government has even issued proper guidelines to the field offices so that the employees do not face any difficulties to get the amount instantly. The minister even guided revised terms for the gratuity payments. He added that the employer should make the payment of gratuity within 30 days from the date it becomes payable to the beneficiary under the Payment of Gratuity Act, 1972. Apart from this, EPFO has even provided other benefits to its over four crore subscribers. The initiatives include the facility for the users to withdraw up to Rs 50,000 for treatment of illness and the provision of loyalty-cum-life. The subscribers are even allowed to withdraw 90% of the PF amount to purchase homes. Currently, there are 55.51 lakh pensioners and 48.85 lakh Central government employees in the country.   Share on: */