Bonus, PF, ESI Recoveries – Clause 16

As per Clause 16(a), any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend [Sec. 36(1) (ii)] is required to be reported in Form 3CD.

As per Clause 16(b), any sum received from employees towards contributions to any provident fund or superannuation fund or any other fund [mentioned in Section 2(24)(x)] and due date for payment and the actual date of payment to the concerned authorities [u/s 36(1) (va)] is required to be reported in Form 3CD.

To view the details of the Employees’ Deductions during the given year for Bonus, PF, ESI Recoveries Clause16,

Go to Gateway of Tally > Audit & Compliance > 44AB Audit > Bonus, PF, ESI Recoveries

The Bonus, PF, ESI Recoveries screen displays the Amount (Contributed / Deducted, Paid, Difference) to the Employees towards Provident Fund, Employee State Insurance, Professional Tax and Bonus along with the Payment Status and Audit Details.

Note: The exceptional Vouchers that need Auditor’s attention are highlighted in Red colour in the Employees’ Deductions report.

The details for each column in the above screen are given below:

To view the details of the Particular column each refer to Provident Fund Recoveries, ESI Recoveries, Professional Tax Recoveries, Bonus Paid.

Payment Disallowed:

The Payments that are Disallowed by the user during the Audit process will be listed under Payment Disallowed separately for Provident Fund, Employee State Insurance and Professional Tax. The auditor can press Enter on Payment Disallowed for each section to view the respective Payment Vouchers.

Note: Payment Disallowed line will appear only if the user disallows PF,ESI or PT Payment during the Audit process. The screen details and button options for the Payment Disallowed reports are same as Provident Fund Payment Vouchers, Employee State Insurance Payment Vouchers and Professional Tax Payment Vouchers report.

Button options in the Employees’ Deductions Details screen

F5: Masters

Click on F5: Masters button or press F5 key to view the List of Pay Heads.

F6: Payment Summary

Click on F6: Payment Summary button or press F6 Key to view the Payment Summary for the selected Report. For more details on the Payment Summary reports visit:

X: Exceptions

Click on X: Exceptions button or press Alt+X keys to view the Vouchers with Payment Status other than Paid on Time or Unknown.

F: Form 3CD

Click on F: Form 3CD or press Alt+F to fill in Form 3CD for Clause 16.

C: Clause Reference

The user can provide references to a specific clause listed in Form 3CD at the company level or at the voucher level. References to a particular clause will help in arriving at a right decision while filling Form 3CD.

To provide Clause References,

An example of Voucher level reference is stated below:

An example of Company level reference is stated below:

Note: Clause reference selected from any voucher report will allow the user to provide clause references only at the voucher level and not at the Company level.

Such references provided for every clause can be viewed while filling the Form 3CD. For more details on the same, refer View Clause References in Form 3CD.  

F12: Configure

Click on F12: Configure button or press F12 key to change the default view for Employees' Deduction screen.

 

Monthly Summary Report

Select a Line item from Employees' Deduction screen and press Enter to view the relevant Monthly Summary. For more information on Payroll Monthly Summary, visit: