preloader

PF/ ESI / Professional Tax - Canest

Canest > PF/ ESI / Professional Tax

Overview

Employees’ Provident Fund is a social security scheme that helps employees save a small portion of their salary for future benefits.

Every company has to offer its employees an EPF or Employees Provident Fund which is akin to a retirement fund. EPF comes under the purview of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for organizations with total employee strength more than 20. Such employers can opt for online PF registration from CANEST. Companies can register for employee provident fund, in 3 easy steps:

  • Free consultation and form filling
  • Connect with a dedicated affiliate for data validation
  • Receipt of PF number
Benefits of PF Registration Online

Pension Coverage

Besides the contribution of the employee to EPF, the employer adds an equal amount which is inclusive of Employee Pension Scheme (EPS). Therefore, EPF saves you a robust pension.

Cover of Risk

In case of instances like illness, demise or retirement, Provident Fund helps the dependents of the employee by covering the financial risks they face in such situations.

Single Account/one EPF Account

The PF account can be transferred while switching jobs. Universal Account Number(UAN) linked to the Aadhar will start to facilitate the linking of the previous accounts. It can be carried forward to the new employer instead of being closed down. This uniformity ensures that the rate of return is compounded over the years.

Emergency Fund

Emergencies are bound to happen at any point of time in life. EPF amount can be of great help during mishaps, illnesses, weddings and educational expenses. Employee can make claims online.

Employee Deposit Linked Insurance Scheme

Any person who has PF account is eligible for this insurance scheme that requires only 0.5 % of the salary deduction as premium.

Extended Goals

The PF account can be extremely helpful for long-term goals like buying a property or setting up a fund for children.

ESI Registration

Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary, and other advantages to workers. ESI is managed by an autonomous authority – Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment.

By law, any company that has more than 10 employees mandatorily needs to have ESI. In some states, the number of employees is 20. For employees earning more than ₹21,000 per month, including basic salaries and dearness allowance, the insurance is deducted from their pay.

Also, taxpayers with a turnover of less than ₹1.5 crore can opt for the composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

 

Benefits of ESI Registration

ESI Registration ensures that employees enjoy the following advantages:

Medical Aid

From the very first day of employment, registered ESI members and their families are entitled to enjoy the benefits of complete medical care and insurance.

Maternity Aid

Pregnant women are entitled to maternity benefits that are payable upto twenty-six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.

Disablement Benefits

Disabled employees can get 90% of their monthly salaries as disablement benefits.

Sickness Benefits

Absence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.

Dependent Benefits

In the unfortunate event of the demise of an employee during the employment, the dependents of the deceased will receive 90% of his/her monthly salary.

Funeral Expenses

The family of the deceased employee is entitled to an additional amount of Rs.10,000 towards funeral expenses.

Confinement Expenses

In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.

 

Online Professional Tax Registration

Professional tax is a tax that is imposed by state governments on all salaried individuals. Professional tax is applicable to all working professionals, such as chartered accountants, lawyers, and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as professional tax is ₹2,500 per annum.

Benefits

Here are the reasons why one should never miss a professional tax payment

  • Judicial requirement: Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
  • Avoid paying penalties: Failure to professional tax registration results in huge penalties that keep on increasing over time.
  • Easy to comply: The professional tax regulations are so easy to follow. The registration procedures can be done quickly and the further proceedings are also much easier.
  • Deductions: Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
  • State government tax: The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond ₹2500 per annum.
 

Why Choose Canest?

✓ AFFORDABLE

We provide cost effective services for our clients.

✓ FAST PROCESS

Online service portal makes our process superfast.

✓ 100+ SERVICES

Bunch of services to fulfil your business requirements.

✓ EXPERIENCE

15+ Years’ experience of providing online CA services.

REQUEST A CALL BACK