| Planning Commission proposes labour laws overhaul | |||
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New delhi, 3 August The Planning Commission has proposed amassive overhaul of the country's existing labour laws to boost the sagging manufacturing sector, which contracted two per cent in May, compared with 2.6 per cent growth in the year- ago period. The panel has proposed a liberal hire and fire policy in the manufacturing sector, besides third party auditing in place of labour inspections to monitor occupational safety and health administration in the sector, said officials. The commission has also suggested easing restrictions pertaining to the number of working hours by amending provisions in the Factories Act. The recommendations mainly target three labour laws-- the Industrial Disputes Act, the Factories Act and the Trade Unions Act. ( See box). Non- restrictive working hrs Suggesting changes in the Factories Act, the Plan panel said weekly, daily and quarterly working- hour restrictions could be aligned with international best practices such as 10 to 12 hours, subject to overall existing weekly caps. These recommendations are to be circulated among stakeholders such as the ministries of corporate affairs, commerce and industry, law, labour and micro, small and medium enterprises; Employees State Insurance Corp, state governments, trade unions and employers' organisations for their feedback. Aadhar- linked benefit a/ c It has also suggested universal coverage of social benefits, irrespective of the size and nature of employment and a provision for employers to deposit contributions under all labour schemes ( employees provident fund, employees state insurance, wages, disability allowance, health insurance and other payments) under different sub accounts, which are linked to a single Aadhar account. Lay off with compensation On the lay- off provisions, the commission has recommended amending the Industrial Disputes Act, 1947, citing that the present law prohibits lay- offs. It said these provisions posed significant challenges for manufacturing units, which needed relatively more flexibility around the workforce planning to adjust per business requirement. "Going forward, the lay- off provision needs to be flexible with no quantitative restrictions, without compromising employee welfare," the panel said. Elaborating on the situations that can lead to a worker being fired, it said lay- off could be with or without a reason, adding legal reasons for lay- off should be exhaustively defined to prevent foul play. As for lay- offs with a reason, the commission said, there was no obligation on the employer and the problem should be resolved in the labour court if required. As for layoffs without a reason, the employer should provide standardised benefits to the employee linked to the tenure in the firm. Secret ballot for strike The Planning Commission has also suggested steps to ensure that the trade union movement achieves its objectives of collective bargaining, while not harming the manufacturing sector. The Trade Unions Act, 1926 needs to be amended to ensure that every employer sets up a labour welfare board on which representatives of both the management and workers were present, it said, adding there could be no stoppage of work unless 70 per cent of workers vote using secret ballot. The new suggestions, in line with the latest Economic Survey suggestions favouring labour reforms for a robust manufacturing sector, are getting negative reactions from trade unions. Baij Nath Rai, general secretary of the Bharatiya Mazdoor Sangh, the country's largest trade union organisation which is affiliated with the Bharatiya Janata Party, said a set of recommendations on similar lines were earlier circulated for the national manufacturing zones, but these were rejected by the labour ministry itself, along with the trade unions. " If these come to us, we will reject them," he added. Industry bodies were reluctant to comment on the issue. Factories Act, 1948 Section 51: Specifies maximum number of permissible hours for factory workers in a week Section 54: Specifies the number hours permitted for a day Section 64: Maximum number of working hours including overtime permitted under state amendments Suggestion: Working hour restrictions could be aligned with international best practices, subject to the existing weekly caps Industrial Disputes Act, 1947 Section 25 M: Provides for prohibition of lay- offs for factory workers Specifies bureaucratic process to be followed for lay- offs Section 25 G: Allows legal action against lay- offs unless based on last come first go principle Suggestion: Allow lay- offs, provided the worker gets compensated Trade Unions Act, 1926 Trade Unions Act, 1926 Suggestion: No labour strike unless 70 per cent workers vote for its by secret ballot Wage disputes effective from demand dateLabour welfare boards in every establishment Occupational Safety and Health policy Suggestion: Labour inspections be replaced by third party audits LABOUR LAWS TO BE AMENDED | |||
| How to claim tax refunds | |||
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All of us love getting gifts. If it is a refund from the tax man, then it is all the more welcome. If you have paid more tax than you need to, you must file for claiming the tax refund. Since filing for tax returns has been made mandatory, you can claim the refund while filing your return itself. That is why you must mention your bank account number and the bank ISC code while filing the return. But if you have not claimed refund while filing the return, you can still file an application for claiming tax refund using Form 30. " This was the common way to claim refund when filing for returns was not mandatory and you had to follow the assessing officer personally to claim refund," says Sanjeev Gokhale, a Mumbaibased Chartered Accountant. Once you file for refund, you are supposed to get the money within four months. The IncomeTax department has been working towards this. But be prepared to wait longer, since it can sometimes take up to a year, Gokhale warns. Let us look at some of the common reasons why you many need to claim refund: Not submitted proof of tax- saving investments to employer All salaried employees are expected to submit proof of their tax – saving investments to their employers so that it can be set off against the tax that is deducted. Most companies ask employees to submit the proof by before March so that they can account for it in the Form 16. But for some reason if you have done your investments, but not submitted the proof of your investments to your employer, then your tax will be deducted without calculating the deductions allowed. You can claim for refund by submitting proof of the investments while filing the tax return. If you have made an investment that is eligible for tax- saving, but it has not been considered by employer, or you have made it after the last date set by your employer, then too it will not reflect in your Form 16. In that case too you can claim refund while filing the return. Interest paid on home loan not accounted for While the repayment of principal of home loan is eligible for taxexemption under the overall limit of ₹ 1 lakh, under Section 80C, the repayment of interest is eligible for tax- exemption under Section 24. Due to this, it may happen that it does not get accounted for in your Form 16. If this is the case, you can claim refund for the interest repayment of your home loan while filing the return. Excess TDS deducted For self- employed persons ( those working as consultants and earning fees instead of salary) or business people, tax is deducted at source by the company which pays the fee. Usually, TDS rate for professional fee is 10 per cent and it is cut by the company before paying the fee to the the consultant. However, if at the end of the year, while considering the overall profit, if your earnings are lesser, you can claim tax refund. For instance, if at the end of the year, your earnings are less than ₹ 2 lakh, ( after calculating the standard deductions), then you need not pay tax and you can claim refund. Loss or depreciation incurred in business Business people can also claim refund for depreciation incurred has incurred an expense of ₹ 10 lakh in computerising his office. He can show a flat ₹ 6 lakh as depreciation and claim a tax refund. Senior citizens Senior citizens are eligible for nondeduction of income tax on their you can claim for refund. It is possible to track the status of your refund on the I- T departments website. If your refund is delayed for long, follow it up with the tax returning officer, either in person or through letters. Make sure you attach a copy of the return filed along with your letter. It is easiest to claim refund while filing returns. But if you have not done so, use Form 30
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