THE HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT, 2020

 THE HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT, 2020  Compliances
Mar 042021
 

The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 26th February 2021 and is hereby published for general information

  • This Act may be called the Haryana State Employment of Local Candidates Act, 2020
  • It extends to the whole of the State of Haryana
  • It shall come into force on such date, as the Government may, by notification in the Official Gazette, specify
  • This Act applies to all the Companies, Societies, Trusts, Limited Liability Partnership firms, Partnership Firm and any person employing ten or more persons and an entity, as may be notified by the Government, from time to time
  • It shall cease to have an effect on the expiry of ten years from the date of its commencement, except as respect to the things to be done or omitted to be done before such cesser, and upon such cesser section 6 of the General Clauses Act, 1897 (Central Act 10 of 1897), shall apply as if this Act had then been repealed by a Central or State Act, as the case may be.
  • Employer” means a Company registered under the Companies Act, 2013 (Central Act 18 of 2013) or a Society registered under the Haryana Registration and Regulation of Societies Act, 2012 (1 of 2012) or a Limited Liability Partnership Firm as defined under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) or a Trust as defined under the Indian Trust Act, 1882 (Central Act 2 of 1882) or a Partnership Firm as defined under the Indian Partnership Act, 1932 (Central Act 9 of 1932) or any person employing ten or more persons on salary, wages or other remuneration for the purpose of manufacturing or providing any service or such entity, as may be notified by the Government from time to time, but shall not include the Central Government or the State Government or any organization owned by the Central Government or the State Government;
Compulsory registration
  • On and from the date of commencement of this Act, every employer shall register such employees receiving a gross monthly salary or wages not more than fifty thousand rupees or as notified by the Government, from time to time, on the designated portal, within three months of coming into force of this Act
  • Provided that no person shall be employed or engaged by any employer till the registration of all such employees is completed on the designated portal
Recruitment of local candidates.
  • After the commencement of this Act, every employer shall employ seventy-five percent of the local candidates with respect to such posts where the gross monthly salary or wages are not more than fifty thousand rupees or as notified by the Government, from time to time
  • Provided that the local candidates may be from any district of the State, but the employer may, at his option, restrict the employment of local candidates from any district to ten percent of the total number of local candidates
  • Provided further that no local candidate shall be eligible to avail of the benefits under this Act unless he registers himself on the designated portal
Exemption
(1) The employer may claim exemption from the requirement of section 4, where an adequate number of local candidates of the desired skill, qualification or proficiency is not available by applying to the Designated Officer in such form and manner, as may be prescribed.
 (2) The Designated Officer shall, after such inquiry, as he deems fit and after evaluating the attempt made by the employer to recruit local candidates of the desired skill, qualification, or proficiency, may either-
(i) accept the claim of the employer for exemption from the provisions of section 4; or
(ii) reject the claim of the employer for an exemption for reasons to be recorded in writing; or
(iii) direct the employer to train local candidates to achieve the desired skill, qualification, or proficiency.
 (3) Every order made by the Designated Officer under sub-section (2), shall be placed on the website of the Government.
Employer to furnish report
 
Every employer shall furnish a quarterly report, by such date, as may be notified by the government in the Official Gazette, of the local candidates, employed and appointed during that quarter on the designated portal in such form, as may be prescribed
Penalties
Section 3 (Compulsory registration)

If any employer contravenes the provisions of section 3 of this Act or of any rules made thereunder or of any order in writing given thereunder, he shall be guilty of an offense punishable with the penalty which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees and if the contravention is still continued after conviction, with a further penalty which may extend to five hundred rupees for each day till the time contravention is so continued.

Section 4 (Recruitment of local candidates)

if any employer contravenes provisions of section 4 or of any rules made thereunder or of any order in writing given thereunder, he shall be guilty of an offense punishable with the penalty which shall not be less than fifty thousand rupees but which may extend to two lakh rupees and if the contravention is still continued after conviction, with a further penalty which may extend to one thousand rupees for each day till the time contravention is so continued.

Section 5(Exemption)

If any employer disobeys any order in writing made by the Designated Officer under section 5, he shall be guilty of an offense punishable with the penalty which shall not be less than ten thousand rupees but which may extend to fifty thousand rupees and if the contravention is still continued after conviction, with a further the penalty which may extend to one hundred rupees for each day till the time contravention is so continued.

Notification:- THE HARYANA STATE EMPLOYMENT OF LOCAL CANDIDATES ACT, 2020

Karnataka Minimum Wages 2021-2022

 Karnataka Minimum Wages 2021-2022  Compliances
Mar 032021
 

Karnataka Govt has revised & Increase in Cost of Living Allowance (DA) payable in Scheduled Employment under Minimum Wage Notification for the period from 01/04/2021 to 31/03/2022

 

Industries/Category Notification
Shop & Establishment 👉 Karnataka MW 2021-2022-Shop & Establishment-compressed
Hotel & Restaurant 👉 Karnataka MW 2021-2022- Hotel-compressed
Security 👉 Karnataka MW 2021-2022 Security

 

SOURCES: PRAKASH CONSULTANCY SERVICES

Agriculture Income To Employee

 Agriculture Income To Employee  Agriculture Income To Employee
Feb 192015
 

Agriculture Income To Employee

In previous document we have discuss few methods of planning your salary structure in the manner that suits tax man and in the same time minimise your tax bill. Even after availing all those benefits requirement is observed to avail some more avenues of income which are tax free and can be earned with minimal efforts. Hence we are looking forward for agriculture income, which is a need of human life.

What practically few employees doing is; while working in office of employment they give their lands to cultivate and grow to others which is managed by their family. In this way they have a additional source of income and at the same time they need not to pay additional tax. The provision related to agriculture income explained in following para.

Meaning of “Agriculture Income” : Agriculture Income means-

  1. any rent or revenue derived from the land which is situated in India and is used for agriculture purposes sec.2(1A)
  2. any income derived from the land by agricultural operation including processing of the agriculture produce, raised or received as rent –in-kind so as to render fit for the market, or sale of such produce[sec.2(1A)
  3. income attribute to a farm house subject to the conditions that on the building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house or other out building and the land is assessed to land revenue or a local rate or, alternatively ,the building is situated on or in the vicinity of land which (though not assessed to land revenue or local rate) is situated outside in urban areas, i.e., any area which comprised within the jurisdiction of a municipality or cantonment board having population of 10,000 or more in any area within such notified distance upto 8 km from the local limits of such municipality or cantonment board.

 Benefit of having Agriculture Income

  • SECTION 10(1) exempts agriculture income from tax.
  • The reason of exemption of agricultural income from central taxation is that the constitution gives exclusive power to makes laws with respect to taxes on agricultural income to the state Legislature.
  • Agricultural income is taken into consideration to determine tax on non-agricultural income in exceptional cases only.
  • With effect from the assessment year 2009-10, any income derived from saplings seedlings grown in a nursery shall be deemed to be an agricultural income.

Essentials condition to prove income to be agriculture income:-

– There must have a land.
– Rent or revenue should be derived from land.
– The land is one which is situated in India.
– The land is used for agricultural purposes.

How shall an employee take benefit of this provision:-

To availing this exemption, an employee shall disclose his agriculture income in the exempted income listing of return. At self assessment level no other procedural requirement needs to be met. However, in case of scrutiny employee must prove correctness of his claim to Income Tax Authority (ITA).

Further to avail this exemption, employees needs to show a relation between his income and agriculture land situated in India. Employees need not to be owner of land. The only requirement is a relation between income and agriculture land. This relation may be direct or indirect.

It shall be noted that agriculture income is added to salary income only for determining tax rates on salary income. To that extent it can be said agriculture income is indirectly taxed in terms of higher tax rates of normal salary income.

However in some cases transactions are coloured as agriculture income. This is not correct. If you get catch my ITA, it will raised huge penal and prosecution action against such person.

So after discussion the scope of taxation of agriculture income it may be concluded that even if you are not owner of land still you can avail the benefit of this exemption and minimise your tax bill. In upcoming document we will provide you practical method of availing this exemption and few other important aspects related to agriculture income.

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