It is my humble request for assistance in filling out the Annual Return (FORM-IV) under the Payment of Wages Act, 1936. I am confused about the following line: "Gross amount paid as remuneration to persons receiving less than Rs. 18,000 including deduction under section 7(2)..."
My Queries Are as Follows:
1. Is the monetary value of concessions mandatory?
2. Does Professional Tax fall under deduction Section 7(2)?
3. What constitutes a profit-sharing bonus? Is it the same as a bonus under the Payment of Bonus Act?
4. Should "Profit sharing Bonus & Bonus (under Payment of Bonus Act)" be included in the Gross amount paid as remuneration?
5. Should Travel Allowance/Conveyance be included in the Gross Amount paid as remuneration?
I have also attached FORM-IV and highlighted the confusing areas.
From India, Mumbai
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1My Queries Are as Follows:
1. Is the monetary value of concessions mandatory?
2. Does Professional Tax fall under deduction Section 7(2)?
3. What constitutes a profit-sharing bonus? Is it the same as a bonus under the Payment of Bonus Act?
4. Should "Profit sharing Bonus & Bonus (under Payment of Bonus Act)" be included in the Gross amount paid as remuneration?
5. Should Travel Allowance/Conveyance be included in the Gross Amount paid as remuneration?
I have also attached FORM-IV and highlighted the confusing areas.
From India, Mumbai
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In response to your queries:
Money Value of Concessions
- The money value of concessions is not explicitly mandated to be included in the Annual Return (FORM- IV) under the Payment of Wages Act. However, it is advisable to include it if applicable for accurate reporting.
Professional Tax and Section 7(2)
- Professional Tax is not typically considered a deduction under Section 7(2) of the Payment of Wages Act. Section 7(2) generally pertains to deductions for damages or loss, fines, or advances given by the employer.
Profit Sharing Bonus
- Profit-sharing bonus refers to a bonus given to employees based on the company's profits. It is different from the statutory bonus provided under the Payment of Bonus Act. Profit-sharing bonuses are discretionary and are usually a share of the company's profits distributed among employees.
Inclusion in Gross Amount
- Both Profit-sharing Bonus and Bonus under the Payment of Bonus Act should be included in the Gross amount paid as remuneration in the Annual Return (FORM- IV) under the Payment of Wages Act. These bonuses form part of the overall remuneration paid to employees.
Travel Allowance/Conveyance
- Travel Allowance or Conveyance should typically be included in the Gross Amount paid as remuneration in the Annual Return. Any allowances or benefits provided to employees as part of their remuneration should be accounted for in this section.
For detailed guidance on filling out the Annual Return (FORM- IV), refer to the specific provisions of the Payment of Wages Act and seek clarification from relevant authorities if needed.
From India, Gurugram
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Money Value of Concessions
- The money value of concessions is not explicitly mandated to be included in the Annual Return (FORM- IV) under the Payment of Wages Act. However, it is advisable to include it if applicable for accurate reporting.
Professional Tax and Section 7(2)
- Professional Tax is not typically considered a deduction under Section 7(2) of the Payment of Wages Act. Section 7(2) generally pertains to deductions for damages or loss, fines, or advances given by the employer.
Profit Sharing Bonus
- Profit-sharing bonus refers to a bonus given to employees based on the company's profits. It is different from the statutory bonus provided under the Payment of Bonus Act. Profit-sharing bonuses are discretionary and are usually a share of the company's profits distributed among employees.
Inclusion in Gross Amount
- Both Profit-sharing Bonus and Bonus under the Payment of Bonus Act should be included in the Gross amount paid as remuneration in the Annual Return (FORM- IV) under the Payment of Wages Act. These bonuses form part of the overall remuneration paid to employees.
Travel Allowance/Conveyance
- Travel Allowance or Conveyance should typically be included in the Gross Amount paid as remuneration in the Annual Return. Any allowances or benefits provided to employees as part of their remuneration should be accounted for in this section.
For detailed guidance on filling out the Annual Return (FORM- IV), refer to the specific provisions of the Payment of Wages Act and seek clarification from relevant authorities if needed.
From India, Gurugram
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Payment of wages Act FORM IV - Annual Retruns.doc