What Is Employees’ State Insurance Scheme?

The Employees' State Insurance (ESI) Scheme is a social security scheme initiated by the Government of India. It aims to provide coverage to workers in order to protect them from various health-related contingencies that may affect their earning capacity or result in a loss of income. The scheme offers medical care, cash benefits, and other essential services to insured workers and their dependents. Additionally, maternity benefits are provided to the beneficiaries.

Employees State Insurance Act, 1948: The Employees' State Insurance Act, 1948, commonly known as the ESI Act, was enacted by the Parliament of India as the first major legislation on social security for workers after the country gained independence. The act extends medical cover and other benefits to employees working in factories, business establishments, and various organizations such as hotels, road transport, cinemas, newspapers, educational institutions, medical institutions, and shops where ten or more persons are employed.

Coverage Under Employees’ State Insurance Scheme: The ESI scheme was initially implemented in Kanpur and Delhi in 1952 and gradually extended throughout the country as industrialization progressed. As of March 31, 2019, the ESI Act covers approximately 12 lakh factories and business establishments, benefiting over 3 crore workers or family units. The scheme provides coverage to more than 13 crore beneficiaries.

What Is Not Covered Under EmployeesState Insurance Scheme? The ESIC scheme does not cover employees earning more than Rs. 21,000 per month. For persons with disabilities, the maximum wage covered is capped at Rs. 25,000 per month. In Maharashtra and Chandigarh, the threshold for coverage remains at 20 employees instead of 10 employees, as is the case in other states and union territories.

Infrastructure of Employees StateInsurance Scheme (ESIS): Since its inception in 1952, the ESI Corporation has established numerous hospitals, annexes, dispensaries, and clinics to provide medical services to insured workers. The ESI infrastructure network includes hospitals, annexes, dispensaries, Ayush units, panel clinics, occupational disease centers, branch offices, and pay offices spread across different locations.

Features And Benefits of Employees State Insurance Scheme (ESIS): The ESI scheme offers several features and benefits to insured workers and their dependents. Some of the salient features include:

Medical: The scheme covers the insured workers' medical expenses through affordable healthcare facilities from the day of their employment.

Maternity: Beneficiaries can avail 100% of their daily wages for up to 26 weeks, with the possibility of extension based on medical advice. Different durations of benefits are provided in cases of miscarriage or adoption.

Disability: Temporary disablement entitles the worker to receive 90% of their monthly wage until recovery, while permanent disability allows the worker to receive 90% of their monthly wage for life.

Sickness: During medical leave, the scheme provides cash benefits equivalent to 70% of the daily wage for a maximum of 91 days, which can be availed in two consecutive periods.

Unemployment: Involuntary loss of non-employment or permanent invalidity due to injury allows the worker to receive a maximum of 50% of the average monthly wage for 24 months.

Dependents: The scheme provides financial assistance to dependents of the insured in case of illnesses or injuries sustained at work. Monthly payments are distributed among surviving dependents.

Funeral Costs: An amount of Rs. 15,000 is provided by the ESIC towards funeral costs, payable to the dependents or the individual performing the last rites of the insured.

Confinement Costs: In cases where required medical care is not available under the scheme at the location of confinement, the insured or dependent

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CONTACT US 

AIAT Institute

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

QUESTION & ANSWER

1.When was the Employees' State Insurance (ESI) Scheme initiated?

A. 1947

B. 1952

C.1948

D.1950

Ans: C. 1948

2.What is the main objective of the Employees' State Insurance Scheme?

A.Providing financial assistance to retired employees

B. Offering medical care and cash benefits to insured workers

C.Providing housing facilities to workers

D.Offering scholarships to workers' children

Ans: B.Offering medical care and cash benefits to insured workers

3.What is the coverage criteria for the Employees' State Insurance Scheme?

A.Covers all workers in India

B.Covers workers earning up to Rs. 25,000 per month

C.Covers workers employed in factories and business establishments with ten or more employees

D.Covers workers employed in all organizations, regardless of the number of employees

Ans: C.Covers workers employed in factories and business establishments with ten or more employees

4.Which act governs the Employees' State Insurance Scheme?

A.Employees' Provident Fund Act, 1952

B.Employees' Compensation Act, 1923

C.Employees' State Insurance Act, 1948

D.Employees' Pension Scheme, 1995

Ans: C.Employees' State Insurance Act, 1948

5.What is the maximum wage limit for coverage under the Employees' State Insurance Scheme? A.Rs. 15,000 per month

B.Rs. 20,000 per month

C.Rs. 21,000 per month

D.Rs. 25,000 per month

Ans: C.Rs. 21,000 per month

6.What does the Employees' State Insurance Scheme provide in case of temporary disability?

 A.100% of daily wages for up to 26 weeks

B.90% of monthly wage until recovery

C.Cash benefits equivalent to 70% of daily wage for a maximum of 91 days

D.50% of average monthly wage for 24 months

Ans: B.90% of monthly wage until recovery

7.What is the amount provided by the ESIC towards funeral costs?

A.Rs. 10,000

B.Rs. 15,000

C.Rs. 20,000

D.Rs. 25,000

Ans: B.Rs. 15,000

8.Which of the following is not part of the Employees State Insurance Scheme infrastructure?

A.Hospitals

B.Annexes

C.Dispensaries

D.Banks

Ans: D.Banks

9.In which year was the ESI scheme initially implemented in Kanpur and Delhi?

A.1948

B.1950

C.1952

D. 1960

Ansr: C.1952

10.What benefits are provided under the ESI scheme in cases of maternity?

A.50% of the daily wage for 24 months

 B.100% of the daily wage for up to 26 weeks

C.70% of the daily wage for a maximum of 91 days

D.90% of the monthly wage until recovery

Ans: B.100% of the daily wage for up to 26 weeks

 

 

  

Section 44AD of Income Tax Act

Section 44AD of the Income Tax Act provides tax relief to certain individuals and professionals, exempting them from the requirement of getting an audit performed or showing books. However, this provision does not apply to assessees engaged in professions listed under Section 44AA. The purpose of Section 44AD is to ease the tax burden on small taxpayers and assessees. Under this scheme, eligible individuals are not required to maintain or show books of account or undergo an audit. The scheme aims to provide relief to small business owners, except those engaged in businesses mentioned in Section 44AE. With the updates introduced in the Budget 2020, the benefits of Section 44AD have been extended to include professionals with a total income below Rs 50 lakhs during the financial year.

Here are the features of Section 44AD:

Taxcalculation: Tax paid by the assessee under Section 44AD is calculated at 8% of the individual's gross turnover for the financial year, provided that the gross turnover is below Rs 1 crore. However, the Budget 2020 raised this limit to Rs 2 crore.

Applicability: This section applies to any business or profession, except those referred to in Section 44AE.

Taxation: Income calculated under this section is subject to taxation based on the slab rates prescribed by the Income Tax Act.

Restrictions on deductions: Assessees claiming deductions under this section cannot claim any further expenditure or depreciation, except for interest or payments made to partners.

Relaxations for maintaining books of accounts: Individuals who maintain books of accounts are offered relaxations under this section.

Individualincome tax return: Individuals filing their income tax returns under presumptive income need to provide proof of the claimed profit earned.

Eligibility criteria to claim deductions under Section 44AD are as follows:

Professionals: Section 44ADA applies to professionals and came into effect in the financial year 2016-17.

India-based firms: Section 44AD is applicable to India-based firms, except for limited liability partnership (LLP) firms.

Businesstypes: All types of businesses, except those involving hiring, plying carriages, or income received as brokerage or commission, are eligible under Section 44AD.

The application of Section 44AD includes the following:

Coverage: Section 44AD covers all types of businesses, excluding those falling under the provisions of Section 44AE, which involve the leasing, plying, or renting of goods.

Eligible entities: Individual assessees, Hindu Undivided Families (HUFs), and partnerships are eligible to claim deductions under Section 44AD if they are Indian residents. However, LLPs are not covered by this section.

Filing options: Assessees filing income tax returns under Section 44AD can choose to file returns at 8% or above. If they show earnings below 8% of the total turnover, they will be required to maintain books of accounts and undergo an audit by a certified Chartered Accountant.

Ineligibility: Section 44AD does not apply to assessees engaged in professions mentioned in Section 44AA. Assessees involved in agency work or earning income through commissions or brokerage are also ineligible for deductions under this section.

The application of Section 44AD with regards to allowances and disallowances is as follows:

Deductions: If an assessee files returns under Section 44AD, they cannot claim deductions under Section 30 to Section 38 of the Income Tax Act, including depreciation.

Partnership firms: If a partnership firm files returns under Section 44AD, additional deductions can be claimed under Section 40(b) for

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CONTACT US 

AIAT Institute

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

QUESTION & ANSWER

1.What is the purpose of Section 44AD of the Income Tax Act?

A. To provide tax relief to certain individuals and professionals

B. To exempt all individuals from paying taxes

C. To increase the tax burden on small taxpayers

D. To require audit and bookkeeping for all businesses

Ans :A. To provide tax relief to certain individuals and professionals

 2.What is the tax calculation rate under Section 44AD for eligible individuals?

A.  8% of the individual's gross turnover

B. 20% of the individual's gross turnover

C. 15% of the individual's gross turnover

D. 10% of the individual's gross turnover

Ans :A. 8% of the individual's gross turnover

 3.Which of the following businesses are eligible under Section 44AD?

A. Businesses involving hiring or plying carriages

B. Businesses receiving income as brokerage or commission

C. All types of businesses except those mentioned in options (a) and (b)

D. None of the above

Ans :C. All types of businesses except those mentioned in options (a) and (b

4.If an assessee files returns under Section 44AD and shows earnings below 8% of the total turnover, what is required?

A. They need to pay a higher tax rate.

B. They need to maintain books of accounts and undergo an audit.

C. They need to claim deductions under Section 30 to Section 38.

D. They need to file returns again under a different section.

Ans :B. They need to maintain books of accounts and undergo an audit.

 5.Section 44AD does not apply to assessees engaged in professions mentioned in which section?

A. Section 44AA

B. Section 44AE

C. Section 44ADA

D. Section 44AF

Ans :A. Section 44AA

 6.Assessees filing returns under Section 44AD can claim deductions under Section 40(b) if they are a:

A. Sole proprietor

B. Partnership firm

C. Hindu Undivided Family (HUF)

D. Limited Liability Partnership (LLP)

Ans : B. Partnership firm

 7.If an assessee files returns under Section 44AD, can they claim deductions for depreciation?

A. Yes, they can claim deductions for depreciation.

B. No, they cannot claim deductions for depreciation.

C. It depends on the total income earned.

D. It depends on the type of business.

Ans :B. No, they cannot claim deductions for depreciation.

 

 

 

What’s New in Tally Prime Release 3.0

Tally Prime Release 3.0 is now available, bringing a range of new features and updates. Launched in December 2020 as an upgrade from Tally.ERP9, TallyPrime has undergone several enhancements since its release. The latest release, TallyPrime Release 3.0, introduces the following new features:

Multiple GSTN in a Single Company Data: With this feature, users can file GST Returns for each GST registration separately using the GST reports of a single Company data. This eliminates the need for maintaining different Company data for different GST registrations and saves time.

GSTR-2A Reconciliation: The process of reconciling transactions in GSTR-2A with suppliers' transactions is now simpler. Users can import GSTR-1 or GSTR-2A in JSON files, in addition to MS Excel and CSV. They can manually mark the status of transactions as reconciled or mismatched, track reconciled transactions that are modified later, and identify potential matches to unreconciled transactions in their books.

Specifying GST Details: Users have more flexibility in specifying and updating GST Rate and HSN/SAC details separately in different types of masters. Updating GST registration details for a party has also been simplified. Slab rates can now be specified in any master, such as stock items, stock groups, ledgers, or groups.

New Report Filters: The release introduces versatile report filters for quick access to business information and data analysis. These filters are easily discoverable, accessible in just one click, and cover a wide range of business scenarios.

Blazing Speeds for GSTR-1: TallyPrime Release 3.0 offers faster opening of GST Returns for quick reference and enhances the filing of GST Returns, particularly GSTR-1 and GSTR-3B.

Enhanced Data Management Experience: The release provides improved data management facilities, ensuring seamless migration, repair, import, and synchronization. Users can view the progress of activities in detail and resolve exceptions, if any.

By incorporating these new features and updates, TallyPrime Release 3.0 aims to enhance the user experience and streamline various processes in TallyPrime.

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CONTACT US 

AIAT Institute

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

QUESTION & ANSWER

1. What is the latest release of TallyPrime?

A. TallyPrime Release 2.0

B. TallyPrime Release 3.0

C. TallyPrime Release 4.0

D. TallyPrime Release 1.0

Ans B. TallyPrime Release 3.0

2. What is the benefit of the "Multiple GSTN in a Single Company Data" feature?

 A. It allows users to file GST Returns for each GST registration separately.

B. It eliminates the need for maintaining different Company data for different GST registrations.

C. It saves time for users by using the GST reports of a single Company data.

D. All of the above.

Ans: D. All of the above.

3. What feature has been introduced to simplify the process of reconciling transactions in GSTR-2A?

1. Importing GSTR-1 or GSTR-2A in JSON files
2. Importing GSTR-1 or GSTR-2A in MS Excel and CSV
3. Manually marking the status of transactions as reconciled or mismatched
4. All of the above.

Ans: D. All of the above.

4. In TallyPrime Release 3.0, where can users specify GST Rate and HSN/SAC details separately?

1. Stock items
2. Stock groups
3. Ledgers
4. All of the above.

Ans: D.All of the above.

5. What is the purpose of the new report filters introduced in TallyPrime Release 3.0?

1. To provide quick access to business information
2. To facilitate data analysis
3. To cover a wide range of business scenarios
4. All of the above.

Ans: D. All of the above.

6. Which GST Returns are enhanced for faster opening in TallyPrime Release 3.0?

A. GSTR-1 and GSTR-3B

B.GSTR-2A and GSTR-3B

C.GSTR-1 and GSTR-2A

D.GSTR-2A and GSTR-2B

Ans: C. GSTR-1 and GSTR-2A

7. What does TallyPrime Release 3.0 offer in terms of data management?

A. Improved data migration and repair facilities

B.Enhanced data import and synchronization

C.Detailed progress tracking and exception resolution

D.All of the above.

Ans: D. All of the above.