Please provide the best answers to the following questions. My director has tasked me with finding the answers or contacting a lawyer:
Can an Experienced Candidate Be Treated as a Trainee?
Where Should Stipends Be Shown in the Account Books?
What Should the Salary Structure Be to Avoid PF and Income Tax Slabs?
What Are the Provisions Under Act 1961?
Regards,
From India, Indore
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28Can an Experienced Candidate Be Treated as a Trainee?
Where Should Stipends Be Shown in the Account Books?
What Should the Salary Structure Be to Avoid PF and Income Tax Slabs?
What Are the Provisions Under Act 1961?
Regards,
From India, Indore
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It seems to me that your director or your company needs an expert legal professional on retainership.
Answers to Your Queries
1. An experienced candidate cannot be taken as a trainee. A trainee is a person who is being trained, especially in a vocation.
2. A stipend is paid to a trainee or apprentice. If you engage any trainee as per the IE(SO) Act or an apprentice as per the Apprenticeship Act, you can book the amount paid to such trainee/apprentice as a stipend. A stipend is an amount of money that is provided periodically to help offset or defray expenses.
3. If you want to avoid PF, you need to pay a basic salary of more than Rs. 6500/- per month. The person should not be a member of PF before and should provide a written statement that they are not willing to contribute towards PF. Rs. 6500/- is the current threshold, which is likely to increase to Rs. 10,000/-.
4. Up to a taxable income of 2L, there is no income tax. The slabs are 2L to 5L, 5L to 10L, and above 10L. To understand what is taxable income, what are the exemptions and deductions, and what the rate of tax is slab-wise, you need to refer to the current Income Tax Law.
To understand the applicability of PF and ESI to trainees/apprentices, please click the link below:
https://www.citehr.com/447790-pf-con...n-trainee.html
Do self-study before asking any query. This will help you only. I do not discourage you from raising any query.
Regards.
From India, Mumbai
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Amend(0)
Answers to Your Queries
1. An experienced candidate cannot be taken as a trainee. A trainee is a person who is being trained, especially in a vocation.
2. A stipend is paid to a trainee or apprentice. If you engage any trainee as per the IE(SO) Act or an apprentice as per the Apprenticeship Act, you can book the amount paid to such trainee/apprentice as a stipend. A stipend is an amount of money that is provided periodically to help offset or defray expenses.
3. If you want to avoid PF, you need to pay a basic salary of more than Rs. 6500/- per month. The person should not be a member of PF before and should provide a written statement that they are not willing to contribute towards PF. Rs. 6500/- is the current threshold, which is likely to increase to Rs. 10,000/-.
4. Up to a taxable income of 2L, there is no income tax. The slabs are 2L to 5L, 5L to 10L, and above 10L. To understand what is taxable income, what are the exemptions and deductions, and what the rate of tax is slab-wise, you need to refer to the current Income Tax Law.
To understand the applicability of PF and ESI to trainees/apprentices, please click the link below:
https://www.citehr.com/447790-pf-con...n-trainee.html
Do self-study before asking any query. This will help you only. I do not discourage you from raising any query.
Regards.
From India, Mumbai
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