Hi, I represent an HRMS service provider IT company. For a few of our clients, we have started investment portals where investment proofs are submitted online (scanned copies) by the employees. We verify the investments "online" and update them. We maintain the soft copies for future reference on a cloud-based server.
Now, the advice I solicit from all the senior subject matter experts is... Is there any non-compliance under any act here? If so, how do we regularize it... Request suggestions...
From India, Mumbai
Acknowledge(0)
Amend(0)
Now, the advice I solicit from all the senior subject matter experts is... Is there any non-compliance under any act here? If so, how do we regularize it... Request suggestions...
From India, Mumbai
Acknowledge(0)Amend(0)
The method you are specifying is for the convenience of the employees.
The method you proposed needs to be checked for compliance and operational aspects as below:
The compliance issue you are concerned with lies with the Employer. As per the IT department, the employer has to consider the proofs, compute tax, deduct at source, and deposit with the IT department.
DeclarIng Investments is the responsibility of the employee. To address this, the employer needs to have a self-declaration from the employee, which usually states that the proofs are authentic, complete, and further allows the employer to deduct tax based on the proofs.
Check how you are managing this.
Then you are going to "Verify" and "Update" the Investments. I assume this is necessary if an employee uploads incorrect documents either erroneously or purposely.
Will there be any alert to the employee about updates?
The tax department sends a notice to the employee if any clarification on tax is required.
What will be your role in this situation when an employee needs documents of Investments considered in tax computation?
From India, Mumbai
Acknowledge(0)Amend(0)
8The method you proposed needs to be checked for compliance and operational aspects as below:
The compliance issue you are concerned with lies with the Employer. As per the IT department, the employer has to consider the proofs, compute tax, deduct at source, and deposit with the IT department.
DeclarIng Investments is the responsibility of the employee. To address this, the employer needs to have a self-declaration from the employee, which usually states that the proofs are authentic, complete, and further allows the employer to deduct tax based on the proofs.
Check how you are managing this.
Then you are going to "Verify" and "Update" the Investments. I assume this is necessary if an employee uploads incorrect documents either erroneously or purposely.
Will there be any alert to the employee about updates?
The tax department sends a notice to the employee if any clarification on tax is required.
What will be your role in this situation when an employee needs documents of Investments considered in tax computation?
From India, Mumbai
Acknowledge(0)Amend(0)
Thanks, Vidyesh!!
Yes, as rightly mentioned by you, we do follow the same process of declaration by the employee. We deduct tax based on declaration, submission of authentic documentation by the employee, verify the authenticity, and reject & communicate back to the employee in case of discrepancies. If the employee isn't satisfied with the discrepancy, then we deduct the tax as per the liability, barring the discrepant investment. From a process perspective, it's a convenience for managing a huge employee base across a larger geography. Remittances, filing of returns, and further procedures are as per the provisions of the IT Act.
However, our concern is, "Is there a legal/compliance objection in terms of doing the whole exercise on the web, maintaining soft copies instead of papers on a cloud server?" Does any act specify/prevent from maintaining soft copies of investments on a cloud server?
For example, although time punches are nowadays captured using biometric or swipe cards, organizations need to have written consent from the ALC office.
From India, Mumbai
Acknowledge(0)Amend(0)
Yes, as rightly mentioned by you, we do follow the same process of declaration by the employee. We deduct tax based on declaration, submission of authentic documentation by the employee, verify the authenticity, and reject & communicate back to the employee in case of discrepancies. If the employee isn't satisfied with the discrepancy, then we deduct the tax as per the liability, barring the discrepant investment. From a process perspective, it's a convenience for managing a huge employee base across a larger geography. Remittances, filing of returns, and further procedures are as per the provisions of the IT Act.
However, our concern is, "Is there a legal/compliance objection in terms of doing the whole exercise on the web, maintaining soft copies instead of papers on a cloud server?" Does any act specify/prevent from maintaining soft copies of investments on a cloud server?
For example, although time punches are nowadays captured using biometric or swipe cards, organizations need to have written consent from the ALC office.
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Soft Copies of Bare Act for HR.zip
96-05--Investme nt+in+Productiv ity.pdf