Saturday, May 31, 2008

Bonus Act_26

Is an employee entitled to get bonus on the basis of his entire salary or wage?

If an employee is drawing a salary or wage not exceeding Rs. 3500.00 per month, he is entitled to get bonus on his entire salary or wage. If an employee is getting a salary or wage exceeding Rs. 3500.00 per month, but not exceeding 10000.00 per month, the bonus payable to him is to be calculated as if his salary or wage were Rs. 3500.00 per month. An employee getting a salary or wage exceeding Rs. 10000.00 per month is not entitled to get bonus. {Section 12}

Bonus Act_25

What is to be included in and excluded from a salary or wage for the purpose of calculating bonus?

For the purpose of calculation of bonus a salary or wage includes a basic salary or wage and dearness allowance but does not include other allowances, overtime salary or wage, house rent allowance, traveling concessions, bonus, employer's contribution to provident fund, retrenchment compensation, gratuity or commission. {Section 2(21)}

Bonus Act_24

Is a seasonal worker entitled to get bonus?

Section 8 relates to the eligibility for bonus. The only requirement of that section is that the employee should have worked in an establishment for not less than thirty working days in an accounting year. Therefore, if a seasonal worker has worked in an establishment for more that thirty working days, he shall be entitled to get bonus.

Bonus Act_23

Can an employee be held ineligible for payment of Bonus under the Act on the ground that he is a managerial employee?


An employee, irrespective of whether he is managerial or not, so long as he came within the definition of employee by virtue of drawing salary falling within the maximum prescribed under Section 2(13) of the Act, he would be eligible for payment of bonus under the Act.

Bonus Act_22

Who are entitled to be paid bonus?


Every employee who is drawing a salary or wage upto Rs. 10000.00 per month (w.e.f. 1-4-2006) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus. {Section 2(13) & 8}

Bonus Act_21

To which establishments is the Act applicable?


The Act is applicable to:
(a) every factory
(b) every other establishment employing 20 or more persons.
The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons. An establishment to which the Act applies shall continue to be governed by the Act irrespective of any fall in the number of person employed therein. {Section 1}

Bonus Act_20

What is the Object of the Payment of Bonus Act, 1965?


The object of the Act is to maintain peace and harmony between labour and capital by allowing the employees to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour.

Wednesday, May 28, 2008

NI Act_Practicle Problems_54

State whether a holder can refuse to take the following acceptance or not:


a. Accepted payable when in funds.


b. Accepted payable when a cargo consigned to me is sold.


c. A bill drawn for Rs 5,000 but accepted for the 4,000 only.


d. Accepted payable at Delhi when no place of payment is specified in the order.


e. Accepted payable at Delhi only when no place of payment is specified in the order.


f. Accepted payable at Delhi when place of payment specified in the order was Bombay.


g. A bill drawn payable three months after date but accepted payable two months after date.


h. A bill drawn on X, Y, and Z (who are not partners) but accepted by X only.A bill drawn on X, Y and Z (who are partners) but accepted by X.

NI Act_Practicle Problems_53

Find out date of maturity in the following cases under NI Act :


a. A bill dated 1st January 1993 is made payable four months after date.

b. A bill, dated 30th January 1993, is made payable one month after date.

c. A bill, dated 31st July, 1993, is made payable two months after date.

d. A bill dated 1st January 1993 is payable 60 days after date.

e. A bill is payable on 28th February 1993.

f. A bill is payable thirty days after sight is presented for sight on 1st March, 1993.

g. A bill, dated 15 January, 1993, is payable three months after date.

Monday, May 26, 2008

Provident Fund Act_Practicle Problems_19

What points and matters should be kept in mind by member while sending application to Employees' Provident Fund organization ?
Instructions for a member while sending application to Employees' Provident Fund Organization:
1. Use the appropriate form for claiming Provident Fund Pension, withdrawal benefit/scheme certificate, Employees' Deposit Linked Insurance benefit, etc. as given below :-
Form-19 : To claim final settlement of Provident Fund by a member.
Form-20 : To claim Provident Fund by nominee/legal heir on death of the member.
Form-10-D : To claim pension. (In duplicate : If within state, In triplicate : If outside state.)
Form-10-C : To claim withdrawal benefit/scheme certificate under Employees' Pension Scheme '95.
Form-5IF : To claim assurance benefit under Employees' Deposit Linked Insurance '76 by nominee/legal heir of a member.
Form-31 : To claim temporary withdrawal/advance under Employees' Provident Fund scheme'52.
Form-13 : To effect transfer of Provident Fund/Pension from one A/C to another.
2. Ensure that all columns of the application are filled completely.
3. Information in the application form relating to name, a/c no. should agree with the detailsavailable with Employees' Provident Fund Organization; which were furnished by the employer at the time of enrolling to Provident Fund.
4. Application should be signed by the member/claimant.
5. It should be attested by the former employer. In case attestation by the former employer is not possible, it should be got attested by any other authorized official specified with application form.
6. Application for final settlement can be sent by a member on completion of 2 months from the date of leaving service, if the reason for leaving service is other than superannuation, medical ground, retrenchment and V.R.S./ Female members getting married etc.
7. Desired mode of payment can be given legibly, if the amount involved is more than Rs. 2000/-. The amount will sent by deposit in payees' bank a/c. To facilitate this, Bank a/c no., name and address of the bank should be furnished. An advance stamped receipt should also accompany this application. Application may be supported by the return Form-10, showing the details of leaving service and details of contribution for the year in Form-3A, if not sent earlier by the employer.

Saturday, May 24, 2008

pearl

Jenny was a bright-eyed, pretty five-year-old girl.One day when she and her mother were checking out at the grocery store, Jenny saw a plastic pearl necklace priced at $2.50. How she wanted that necklace and when she asked her mother if she would buy it for her, her mother said, "Well, it is a pretty necklace, but it costs an awful lot of money. I'll tell you what. I'll buy you the necklace, and when we get home we can make up a list of chores that you can do to pay for the necklace. And don't forget that for your birthday Grandma just might give you a whole dollar bill, too. Okay?"
Jenny agreed, and her mother bought the pearl necklace for her. Jenny worked on her chores very hard every day, and sure enough, her Grandma gave her a brand new dollar bill for her birthday. Soon Jenny had paid off the pearls.How Jenny loved those pearls. She wore them everywhere to kindergarten, bed, and when she went out with her mother to run errands. The only time she didn't wear them was in the shower - her mother had told her that they would turn her neck green. Now Jenny had a very loving daddy. When Jenny went to bed, he would get up from his favorite chair every night and read Jenny her favorite story. One night when he finished the story, he said, "Jenny, do you love me?""Oh yes, Daddy, you know I love you," the little girl said."Well, then, give me your pearls.""Oh! Daddy, not my pearls!" Jenny said. "But you can have Rosie, my favorite doll. Remember her? You gave her to me last year for my birthday. And you can have her tea party outfit, too. Okay?""Oh no, darling, that's okay." Her father brushed her cheek with a kiss. "Good night, little one." A week later, her father once again asked Jenny after her story, "Do you love me?""Oh yes, Daddy, you know I love you.""Well, then, give me your pearls.""Oh, Daddy, not my pearls! But you can have Ribbons, my toy horse. Do you remember her? She's my favorite. Her hair is so soft, and you can play with it and braid it and everything. You can have Ribbons if you want her, Daddy," the little girl said to her father."No, that's okay," her father said and brushed her cheek again with a kiss. "God bless you, little one. Sweet dreams."Several days later, when Jenny's father came in to read her a story, Jenny was sitting on her bed and her lip was trembling. "Here, Daddy," she said, and held out her hand. She opened it and her beloved pearl necklace was inside. She let it slip into her father's hand. With one hand her father held the plastic pearls and with the other he pulled out of his pocket a blue velvet box.Inside of the box were real, genuine, beautiful pearls.He had them all along. He was waiting for Jenny to give up the cheap stuff so he could give her the real thing. So it is with our Heavenly Father. He is waiting for us to give up the cheap things in our lives so that he can give us beautiful treasure. Isn't God good?Are you holding onto things which God wants you to let go of?Are you holding onto harmful or unnecessary partners, relationships, habits and activities which you have become so attached to that it seems impossible to let go?Sometimes it is so hard to see what is in the other hand but do believe this one thing.................God will never take away something without giving you something better in its place.

Friday, May 23, 2008

positive thinking

Once there was loving couple travelling in a bus in a mountainous area. They decided to get down at some place. After the couple got down at some place the bus moved on. As the bus moved on, a huge rock fell on the bus from the mountain and crushed the bus to crumbs. Everybody onboard was killed.



The couple upon seeing that, said, "We wish we were on that bus" Why do you think they said that? If they had remained on the bus instead of deciding to get down, the resulting time delay could have been avoided and the rock would havefallen after the bus had passed ...!!!


Think positive in life always and look for opportunities when u can help others

Thursday, May 22, 2008

Never lie to woman

A man called home to his wife and said, "Honey I have been asked to go fishing up in Canada with my boss & several of his Friends.

We'll be gone for a week. This is a good opportunity for me to get that Promotion I'v been wanting, so could you please pack enough Clothes for a week and set out my rod and fishing box, we're Leaving From the office & I will swing by the house to pick my things up" "Oh! Please pack my new blue silk pajamas."
The wife thinks this sounds a bit fishy but being the good wife she is, did exactly what her husband asked. The following Weekend he came home a little tired but otherwise looking good.
The wife welcomed him home and asked if he caught many fish?
He said, "Yes! Lots of Salmon, some Bluegill, and a few Swordfish. But why didn't you pack my new blue silk pajamas like I asked you to Do?"
You'll love the answer...
The wife replied, "I did. They're in your fishing box....."

Saturday, May 17, 2008

Provident Fund Act_Practicle Problems_18

What is the voluntary rate of Provident Fund contribution by the member?

As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A. & retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires. i.e. upto 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.

Provident Fun Act_Practicle Problems_17

What are the modalities to be followed for payment through cheque?
The member has to open an account in the nationalised bank, scheduled bank, urban bank or post office savings bank. He has to furnish the details of bank a/c no. with the full address of the bank in application form. An advance stamped receipt has also to be annexed in the form.For receipt of pension member/claimant has to open an account only in State Bank of India or Punjab National Bank.

Monday, May 12, 2008

Provident Fund Act_Practicle Problems_16

What is the procedure to be followed by the member if the employer is not attesting his claim forms?
It is the duty of the employer under the Act & Scheme to help Employees' Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receipt of forms & hand over it to the member when he leaves the service. When a member finds difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office
1. Manager of a bank.
2. By any gazetted officer.
3. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees'Provident Fund Organization). Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.

Saturday, May 10, 2008

Provident Fund Act_Practicle Problems_15

What are the periodical returns to be sent by an employer to the Provident Fund Office?
The employer of an un-exempted establishment has to forward the following returns. These returns will include details required under the three schemes namely, Employees Provident Fund Scheme, 1952, Employee Deposit Linked Insurance Scheme,1976 and Employee Pension Scheme, 1995.
a) Form-9(Revised):The details of employees enrolled as members of Employees' Provident FundS'52, Employees' Deposit Linked Insurance'76 & Employees' Pension Scheme'95 on coverage of the establishment- This is to be submitted immediately after coverage, within 15 days of coverage.
b) Form-12A:The details of the contributions recovered form the members & paid along with details of employers' contribution & administrative charges- This is to be submitted monthly by 25th of following month.
c) Form-5:The details of the employees enrolled newly to the Provident Fund- To be submitted along with Form-12A every month within 15 days of the following month.
d) Form-10:The details of the employees leaving service during the month- To be submitted along with form-12A.
e) Challans:The triplicate copy of challans in token of having remitted the Provident Fund dues in the bank- to be submitted along with form-12A every month.
f) Form-2(Revised):Nomination form- To be submitted along with form-5/9.
g) Form-3A:The details of wages & contributions in respect of each member, to be prepared financial year wise- To be submitted to the Provident Fund office by 30th of April every year.
h) Form-6A:Yearly consolidated statement of contributions- To be forwarded yearly along with form-3A. It should be ensured that all the form-3A are entered in form-6A, irrespective of whether the form-3A was forwarded for the broken period and the total dues as per the form-12A for the whole year agrees with the total of form-6A within 30th April.
i) Form-5A:Return of ownership of the establishment- To be forwarded immediately after coverage & whenever there is a change in the ownership, it has to be intimated with in 15 days of change.
j) Specimen signature:Specimen signature of the officer/officers who are authorized to sign the returns/documents relating to Provident Fund forwarded immediately after coverage & whenever there is a change inauthorized officer.



19) What is the procedure to be followed by the member if the employer is not attesting his claim forms?
It is the duty of the employer under the Act & Scheme to help Employees' Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receipt [para72(5)] forms & hand over it to the member when he leaves the service. When a member finds difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office
1. Manager of a bank.
2. By any gazetted officer.
3. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees'Provident Fund Organization).
4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.

Thursday, May 08, 2008

Integrity

It is not what we eat but what we digest that makes us strong;
not what we gain but what we save that make us rich;
not what we read but what we remember that makes us learned;
and not what we profess but what we practice that gives us Integrity.

Monday, May 05, 2008

Provident Fund Act_Practicle Problems_14

What is nomination?

Every member has to give the details of himself & details of the nominee for Employees' Provident Fund & Employees' Deposit Linked Insurance Schemes and details of family for Employees Pension Scheme, 1995 in form no. 2. A member if, is having a family can nominate any one or more persons to receive the Provident Fund on his death. In case of him having no family he can nominate any other person. Family for the purpose of Employee Provident Fund Scheme'52 means wife/husband, children, whether married or unmarried, including adopted children, if adoption is recognized and dependant parents of member. Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee under Employees Provident Fund Scheme, 1952. For the purpose of Employees Pension Scheme,1995 the member has to furnish the details, such as name, relationship & age of all the family members in the form no. 2. Family for the purpose of Employees Pension Scheme, 1995 means wife/husband & children. Whenever member wants to make a change in the nomination already made for Provident Fund, or to update the details of family for Employees Pension Scheme,1995, he has to send a revised form no. 2. The form no.2 is routed through the employer.

Provident Fund Act_Practicle Problems_13

Can member change his/her nomination? What if member has not nominated anyone.




He/She can change his/her nomination whenever he/she decides within the framework of rules for such nomination. In other words if he/she has a family, nomination should be in favour of a member(s) of the family. If he/she has no family he/she can nominate anyone he/she wishes.
The pension / ROC will be paid to the dependent parents.

Saturday, May 03, 2008

Provident Fund Act_Practicle Problems_12

Suppose an employee does not have a Family and he/she dies before receiving benefit. Does his/her pension get lost?

No, if he/she does not have a family, benefits will be paid to his/her nominee, who will receive the benefit in his/her absence.

Provident Fund Act_Practicle Problems_11

What is meant by Family under the PF Act ?

Family means employees' spouse and children below 25 years of age.

Thursday, May 01, 2008

Provident Fund Act_Practicle Problems_10

If employee is not a Family Pension Scheme member and he/she is 56 years of age, Can he/she join Family Pension?


Yes, by diverting from his/her Provident Fund balance, Family Pension Scheme contribution from date of his/her joining or 01-03-71, whichever is later.

Provident Fund Act_Practicle Problems_9

If employee is a Family Pension Scheme Member and he/she has retired after 58 years of age on 15-01-94. Can he/she join the new scheme?
Yes, anyone who has retired by reaching age 58 between 01-04-93 and 15-11-95 may join the scheme by returning the withdrawal benefit along with interest. He will be paid pension with immediate effect, from date of exit provided he has rendered 10 years of contributory service.