Hi All,
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 accounts books?
What should the salary structure be if we want to avoid PF and slabs where income tax is applicable?
What are the provisions under Act 1961?
From India, Indore
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28Please 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 accounts books?
What should the salary structure be if we want to avoid PF and slabs where income tax is applicable?
What are the provisions under Act 1961?
From India, Indore
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Dear Pooja ji,
It seems to me that your director or your company needs an expert legal professional on retainership.
The answer to your queries as under:
1. Experience candidate can not be taken as Trainee. Trainee is a person who is being trained, especially in a vocation.
2. Stipend is paid to trainee or apprentice. If you engaged any trainee as per IE(SO)Act or an apprentice as per Apprenticeship Act, you can book the amount paid to such trainee / apprentice as stipend.
Stipend is an amount of money that is provided periodically to help offset expenses or defray expenses.
3. If you want to avoid PF, you need to pay basic more than Rs. 6500/- p.m. The person should not be a member of PF before and he should give in writing that he is not willing to contribute towards PF.
Rs. 6500/- is as on date which likely to increase to Rs.10000/-.
4. Up to taxable income 2L, there is no income tax. Slabs are 2L to 5L, 5L to 10L and 10L above. To understand what is taxable income, what are the exemptions and deductions, what is the rate of Tax slab wise etc. you need to refer the current Income Tax Law.
To understand the applicability of PF and ESI to trainees / apprentices, please click below given link.
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.
From India, Mumbai
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It seems to me that your director or your company needs an expert legal professional on retainership.
The answer to your queries as under:
1. Experience candidate can not be taken as Trainee. Trainee is a person who is being trained, especially in a vocation.
2. Stipend is paid to trainee or apprentice. If you engaged any trainee as per IE(SO)Act or an apprentice as per Apprenticeship Act, you can book the amount paid to such trainee / apprentice as stipend.
Stipend is an amount of money that is provided periodically to help offset expenses or defray expenses.
3. If you want to avoid PF, you need to pay basic more than Rs. 6500/- p.m. The person should not be a member of PF before and he should give in writing that he is not willing to contribute towards PF.
Rs. 6500/- is as on date which likely to increase to Rs.10000/-.
4. Up to taxable income 2L, there is no income tax. Slabs are 2L to 5L, 5L to 10L and 10L above. To understand what is taxable income, what are the exemptions and deductions, what is the rate of Tax slab wise etc. you need to refer the current Income Tax Law.
To understand the applicability of PF and ESI to trainees / apprentices, please click below given link.
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.
From India, Mumbai
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