Question 1

What is a lower deduction certificate under section 197 and who can apply?

Accepted Answer

Estimated income computation for the current year (Income-tax Act 1961, section 197 / 206C(9); Form 13 annexures (TRACES FAQ 16)); Computation of estimated total income for any of the four previous years (Form 13 (TRACES FAQ 16)); Note justifying the issue of the certificate (Form 13 (TRACES FAQ 16)); Registration / exemption certificate, where relied on (Form 13 (TRACES FAQ 16)); Assessment orders for the last four assessment years (Form 13 (TRACES FAQ 16)); Return of income (Form 13 (TRACES FAQ 16)); Details of income claimed to be exempt, and any other document (Form 13 (TRACES FAQ 16)); Annexure data: deductor TAN(s) and amounts (Annexure I / III), or amounts without TAN (Annexure II) (Form 13 Annexures I-III (TRACES FAQ 7)); Active PAN registered on TRACES as taxpayer, and DSC or e-verification (net banking / Aadhaar / mobile OTP) (TRACES FAQ 2, 20 and 22)

Question 2

Lower Deduction Certificate (Form 13)

Accepted Answer

Stop over-withholding that you would only reclaim as a refund.

Question 3

Contract Labour (CLRA) Licence — West Bengal

Accepted Answer

Applies in West Bengal to every establishment employing five or more contract workers - a lower trigger than the twenty-worker threshold in the unamended central Act. The principal employer registers the establishment; each contractor separately takes a licence. Threshold: Five or more contract workers. The state's own page states it twice: 'The act applies to every establishment employing 5 or more contract workers. Establishment means any office or department of the Government or a local authority or any place where any trade, industry, business, manufacture or occupation is carried out.' Contract labour is prohibited in a core activity, except where a sudden increase in the volume of core-activity work must be accomplished in a specified time. Fee basis: The Act and the state's own summary both say registration and licensing are granted 'by paying the fees prescribed', and that a contractor must also pay a security deposit, but NO PRESCRIBED AMOUNT is published on any West Bengal government page reached. The fee and the security deposit vary with the number of contract workers under the rules; no figure is recorded because none was read. Renewal: A contractor's licence is renewable. Renewal must be applied for not less than 30 days before the date on which the licence expires, in Form VII. Rule 29(1A) additionally requires a declaration by the contractor, on renewal, that he complies with the Act and with the Provident Fund and ESI provisions. Deadline: The principal employer must register under section 7 before employing contract labour; employing contract labour without registration, or after revocation of registration under section 8, exposes the principal employer to action under section 23. Renewal at least 30 days before expiry. Statute: The Contract Labour (Regulation and Abolition) Act, 1970, as applicable in West Bengal, with the contract labour rules made thereunder Read from the Labour Department's own note published on the state portal.gov.in/acts/act_labour_contract_labour_act.pdf (HTTP 200, 168,177 bytes, five pages). Forms named: Form I (registration, in triplicate, to the registering officer), Form IV (application for licence, with Form V from the principal employer), Form VII (renewal), Form XII (principal employer's register of contractors), Forms XVI/XVII/XVIII (muster roll and wage registers), Forms XX/XXI/XXII (deductions, fines, advances), Form XXIII (overtime). Self-certification by the owner is accepted under this Act per Schedule I, vide No. 192-Emp/EMP/IM-19/14 dated 18.06.15, and dispenses with enquiry and verification. CAVEAT ON THE SOURCE: the same page, in answer 11, refers to 'Rule 24 and 26 of the AP Contract Labour Rules' - an evident copy-paste error in the West Bengal document, since Andhra Pradesh's rules do not apply here. The rule NUMBERS for the security deposit are therefore not relied on; only the West Bengal-specific statements (the five-worker threshold, the forms, the 30-day renewal window and the self-certification notification) are recorded.

What is a lower deduction certificate under section 197 and who can apply?

Documents required for Lower Deduction Certificate (Form 13)

Lower Deduction Certificate (Form 13)

Contract Labour (CLRA) Licence — West Bengal

Contract Labour (CLRA) Licence — Delhi

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