Rehire of retired employee on contract basis basis deducting TDS under sec 192b

Dear Jayanta,

You have not followed my last post properly. Your question is under which rule or circular you will deduct EPF for one employee who has attained the 58 years age. Why you have restricted yourself at 58 years. There are several organizations in India where employees are retiring from the services of the organization after attaining the age of 60 years and PF is deducted and deposited but no deposition in EPS account.

PF & Misc. Act have not said any where that there will be no PF deduction after attaining the age of 58 rather for EPS it is mentioned. Therefore, no circular or rule is required to deduct PF after attaining the age of 58 or more. It is one confusion to many people that 58 years is the retirement age as per PF & Misc. Act. This is wrong perception.

Only EPS contribution will be stopped after attaining the age of 58. Therefore, it is absolutely ok to be continued as PF member after attaining the age of 58 if the employee is not an excluded employee as per PF & Misc. Act.

Thanks & Regards,

S K Bandyopadhyay ( WB, Howrah)
CEO USD HR Solutions
+91 98310 81531
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Dear Sir,

If any employee joins after 58 years then we can keep him on parole or have to keep in consultant, if kept on parole then what will the compliance be deducted, please guide me.

Regrads
Amod

Dear Sir

What should be the heads in the pay slip for tax benefit

Regards

Amod

Dear Sir,

If the owner of the company draws salary, what compliances are required.

Pls suggest me.

Amod Kumar Singh

Dear Sir,

What should be the heads in the pay slip for tax benefit?

Regards

Amod Kumar Singh

Amod Kumar Singh, you can engage a person aged more than 58 as a consultant. But what is the meaning in keeping him as a consultant? A consultant cannot be 'employed' lie a regular employee, he cannot be required to come to your office every day at 9 am and remain there till 5.50 or 6 pm, you cannot ask him to take prior permission to take a leave, you cannot ask him to wear a uniform that all others are wearing. A consultant should be one who is giving advise to management and not merely to workers. If your intension is to keep him away from the operation of labour laws, you are wrong. If he is expected to work on a regular manner, with overtime engagement, taking leave after approval then he will fall under the definition of employee under nay labour legislation. He should be given his rights conferred under various laws applicable.

Second question is relating to head of account under which the remuneration payable to such persons should be accounted. It should be accounted under salary only. If he is a technical or managerial consultant, who will come occasionally to advise your team members on matters connected with his line of activity, then you can account it under "professional fees". If salary the deduction of TDS should be as per section 194J. But if he is an employee, obviously, his tax deduction at source should be as per section 192.

An owner or a director of a company form of establishment receiving salary from the organisation shall be covered by all labour laws applicable subject to wage ceiling as provided under each Act. As such, if the Director's salary does not exceed Rs 21000, he should be covered under ESI. If he is an existing member of EPF, then he should be covered under EPF also. If he leaves after a service of five years, he should be paid gratuity also. However, proprietor of a sole proprietorship and partner of a partnership firm are not employees, I understand.