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Ministry of Labour & Employment : Payment of Gratuity (Amendment) Act, 2018 w.e.f 29.03.2018
Dated: 30 MAR 2018
Decision: The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March, 2018 and by the Rajya Sabha on 22nd March, 2018, has been brought in force on 29th March, 2018.
Background: The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting this Act is to provide social security to workman after retirement, whether retirement is a result of superannuation, or physical disablement or impairment of vital part of the body. Therefore, the Payment of Gratuity Act, 1972 is an important social security legislation to wage earning population in industries, factories and establishments.
2. The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay Commission, in case of Government servants, the ceiling has been raised to Rs. 20 Lakhs.
3. Therefore, considering the inflation and wage increase even in case of employees engaged in private sector, this Government decided that the entitlement of gratuity should also be revised in respect of employees who are covered under the Payment of Gratuity Act, 1972. Accordingly, the Government initiated the process for amendment to Payment of Gratuity Act, 1972 to increase the maximum limit of gratuity to such amount as may be notified by the Central Government from time to time. Now, the Government has issued the notification specifying the maximum limit to Rs. 20 Lakh.
4. In addition, the Bill also envisages to amend the provisions relating to calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave from ‘twelve weeks’ to ‘such period as may be notified by the Central Government from time to time’. This period has also been notified as twenty six weeks.
Major Impact: The Bill as passed by both the Houses of Parliament, andassented to by the Hon’ble President and notified by the Government. This will ensure harmony amongst employees in the private sector and in Public Sector Undertakings/ Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity at par with their counterparts in Government sector.
JN/AK
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(Release ID: 1527082)
F.NO.225/270/2017/ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North-Block, ITA.II Division
New Delhi, dated the 27th of March, 2018
Order under Section 119 of the Income-tax Act, 1961
Vide its orders dated 31.07.17, 31.08.17 & 08.12.17, in file of even number, CBDT had allowed time till 31st March, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT, further extends the time for linking PAN with Aadhaar till 30th June, 2018.
(Rajarajeswari R)
Under Secretary to the Government of India
F. No. 225/270/2017-ITA-ll
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 26th March, 2018
Order under Section 119(1) of the Income Tax Act. 1961
The last date for filing belated returns for assessment years 2016-17 and 2017-18 and revised returns for assessment year 2016-17 is 31st March, 2018. The Financial Year 2017-18 closes on 31st March, 2018 which is Saturday. 29th & 30th March, 2018 are also closed holidays.
1. Therefore, to facilitate filing of income tax returns and completion of pending departmental work, all Income Tax Offices throughout India shall remain open on 29th, 30th and 31st March, 2018. The ASK Centers shall also be kept open on these days. Further, special arrangements may also be made by way of opening additional receipt counters, wherever required, on 29th, 30th and 31st March, 2018 to facilitate filing of returns by the taxpayers.
2. This order is issued for administrative convenience by the CBDT in exercise of powers conferred under section 119 of the Income Tax Act, 1961. It may be given wide publicity.
(Rajarajeswar R.)
Under Secretary to the Government of India.
Press Information Bureau
Government of India
Ministry of Finance
26-March-2018
The Government of India issues clarification regarding requirement for furnishing of Country-by Country Report under Section 286(4) of Income Tax Act, 1961.
In keeping with India’s commitment to implement the Recommendations of the 2015 Final Report on Action 13, titled “Transfer Pricing Documentation and Country-by-Country Reporting”, identified under the OECD Base Erosion and Profit Shifting (BEPS) Project, Section 286 of the Income-tax Act, 1961 (‘the Act’) was inserted vide Finance Act, 2016, which provides for furnishing of a Country-by-Country (CbC) Report in respect of an International Group.
The CbC Report is to be furnished by the ultimate parent entity of an International Group in the country or territory of its residence. As specified under sub-section (2) of Section 286, the said Report is to be furnished on or before the due date specified under Section 139(1) of the Act for furnishing of return of income for the relevant accounting year. The date for furnishing of CbC Report under sub-section (2) of Section 286 for FY 2016-17 was subsequently extended to 31stMarch, 2018 vide CBDT Circular No. 26 of 2017 dated 25th October, 2017.
Sub-section (4) of Section 286 specifies situations in which the said report shall be furnished in India by the constituent entity of an international group, resident in India, namely, those in which there is failure to obtain CbC Report on account of the parent entity being resident of a country or territory with which India does not have an agreement providing for exchange of CbC reports or where there has been a systemic failure of the country or territory and the same has been intimated to such constituent entity.
It has been brought to the notice of the Government that Constituent Entities of International Groups, resident in India, have apprehensions that the due date of furnishing of CbC Report under sub-section (4) of Section 286 is also 31st of March, 2018.
In order to allay the aforesaid apprehensions, it is hereby clarified that the due date of 31st March, 2018 applies for furnishing of CbC Report under sub-section (2) of Section 286 only and not under sub-section (4) of the said Section.
It is further stated that the Finance Bill, 2018 (as passed by the Lok Sabha) has proposed that the due date for furnishing of CbC Report under sub-section (4) of Section 286 shall be as prescribed. Accordingly, the time for furnishing of CbC Report under sub-section (4) of Section 286 of the Act is proposed to be prescribed after the enactment of Finance Bill, 2018.
Cabinet approves revision of the Agreement between India and Qatar for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income
Dated: 21.03.2018
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for revision of the Agreement betweenIndia and Qatar for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.
The existing Double Taxation Avoidance Agreement (DTAA) with Qatar was signed on 7thApril, 1999 and came into force on 15thJanuary, 2000.The revised DTAA updates the provisions for exchange of information to latest standard, includes Limitation of Benefits provision to prevent treaty shopping and aligns other provisions with India's recent treaties. The revised DTAA meets the minimum standards on treaty abuse under Action 6 and Mutual Agreement Procedure under Action 14 of G-20 OECD Base Erosion & Profit Shifting (BEPS) Project, in which India participated on an equal footing.
Release ID: 1525676