April 2024

Business owners have a general sense of most HR terms, but still some questions keep coming again and again. In particular, the relationship between payroll and HR often creates confusion. We often hear questions like – What is the role of HR in payroll processing? Does HR include payroll? What is the connection between HR and payroll? What are the advantages of integrating HR software and payroll software? What exactly is the role of HR in payroll processing? The role of HR in payroll processing is crucial. HR (Human Resources) plays a significant role in ensuring accurate and timely payment to employees. Here are some specific responsibilities of HR in payroll processing: Employee Data Management: HR collects, verifies, and maintains employee data such as personal information, employment details, tax withholdings, and benefits enrolment. Time and Attendance Management: HR tracks employees’ working hours, leave records, overtime hours, and other attendance-related information. This ensures accurate calculation of wages. Payroll Calculation: HR works closely with finance departments, or outsourced payroll providers, to calculate employee wages based on the agreed-upon pay rates, deductions, bonuses, and allowances. Compliance with Employment Laws: The human resource department ensures that payroll processes comply with labour laws regarding minimum wage requirements, overtime regulations, tax withholdings, and other applicable legal obligations. Payroll Administration: HR handles administrative tasks related to payroll processing, including preparing pay cheques or electronic transfers for employees, distributing payslips or statements, and addressing any payroll-related inquiries or discrepancies. Benefits Administration: In most organizations, HR manages employee benefits programs such as health insurance, retirement plans, and other voluntary deductions that impact payroll processing. Reporting and Record-keeping: HR maintains accurate records of payroll transactions and generates reports for management’s review or external audits. These reports may include payroll expenses, tax filings, year-end reports, etc What is Payroll processing? Payroll is a list of employees that are paid by the company. Payroll is the total amount the employers pay to the employees. A payroll function involves the development of an organization pay policy that includes flexible benefits, leave encashment policy. Payroll management also includes payslip components like basic, variable pay, HRA, and LTA. and also gathering other payroll inputs like the organization’s food vendor supply, etc. Payroll and HR management also involve releasing the employees’ salary, depositing the dues like TDS, PF, etc with appropriate authorities, and filing returns. Put together Payroll processing includes the calculation of the Net Pay after the tax adjustments and other deductions. By integrating payroll within an HRMS, organizations can have several advantages: Centralized Data: The integration of payroll with other HR functions in an HRMS enables centralized employee data management. This reduces redundancy of data, improves accuracy, and also ensures consistency across different processes. Time and Cost Efficiency: Automating payroll processes through an integrated system eliminates the need for manual calculations. It also reduces paperwork. This saves time for HR professionals and minimizes errors. It also helps in faster processing of salaries and reduces administrative costs. Compliance Management: An HRMS with a payroll module ensures adherence to labour laws and regulatory requirements related to payroll processing. It assists in accurate tax calculations, generating necessary reports like tax filings or year-end documents, thus facilitating compliance with legal obligations. Employee Self-Service: Many modern HRMS systems provide self-service portals for employees. These portals allow them to access their payslips, view tax information, update personal details relevant to payroll processing (such as bank account information), and submit reimbursement claims online. Reporting and Analytics: An integrated payroll module within an HRMS provides comprehensive reporting capabilities. It generates reports on various aspects of payroll such as expense analysis, salary distributions, overtime tracking, etc. It is a great help to management in making informed decisions Payroll processing in India Pre-Payroll Activities Defining payroll policy- The first step is wherein the policies to the bank during the payroll processes need to be established. These policies need to be approved by the management to turn these policies into standards. Policies like the Pay policy, Attendance policy, leave and benefits policy, and more. Gathering inputs- At this stage, the inputs are gathered from various departments to ensure the accurate calculation of the payroll. Source of Data Data Example Employees Income tax declaration, facilities availed, and more HR team Salary structure, eligibility for benefits Finance team Deduction for recoveries Leave and attendance systems Data from attendance systems, current work shift, etc. General service providers Transport service provider, canteen vendor, etc. This data collection can seem tedious at first but registering with IndiaFilings will make it more hassle-free. Input validation- It is necessary to verify the validity of the data once it is gathered as a minute mistake can ruin the entire payroll process. It is necessary to ensure that the list contains all the active employees and no records of inactive employees. Checking the data whether it adheres to the company policy. Ensure the present in the right format. Payroll Calculation- This step is when the validated input data is fed into the payroll system for actual payroll processing. The result is the Net pay after adjusting the necessary taxes and other deductions. Once the payroll process is over it is always better to reconcile the values and verify the accuracy to avoid further errors. Post- Payroll Statutory compliance-The payroll administrator needs to religiously adhere to statutory compliance. There are various statutory deductions like EPF, TDS, ESI is deducted during the payroll processing. These deductions are then paid to the respective authorities or government bodies. Payroll accounting- Every organization is required to maintain an accurate book of accounts and the salary that is paid for one of the significant entries in the books of accounts. Payout- After complying with the steps above the salaries can be finally paid in cash or cheque or via bank transfers. For hassle-free transfers, it is better to have salary accounts of the employees. Report- Preparing a report is the last stage and it is necessary to prepare an accurate report containing information such as the department or location-wise employee cost. Various methods of payroll management Excel-based payroll management- At the

A Current Account or Demand Deposit Account is a kind of bank account that is prominently chosen by companies, firms, public enterprises and entrepreneurs to keep up with large and multiple transactions that occur on a regular basis. This account, being a zero-account, can be opened in most national and commercial banks as it is associated with a higher frequency of transactions. These accounts do not offer any interests on the amount it holds due to the advantage of fluidity offered by it. Among the many highlighted benefits, a current account does not have a limit on the number of transactions to be carried out.  Benefits Card facilities- Individual current accounts, joint current accounts and the accounts linked to proprietary businesses are offered with ATM cards to facilitate quick and easy access. Union Bank of India has an extensive network of ATMs across the country offering a variety of facilities such as withdrawal of cash, balance inquiry, mini statement of accounts, recharging mobiles, etc. With access to a large number of merchant establishments within India, an ATM-cum-Debit-Card, which is usable in and outside the country, can be applied for at a nominal fee. Unlimited Accessibility-Customers can now save time and cost through Union Bank Internet Banking and transact conveniently. Usage of ATM card at any bank’s ATM is also available, subject to an INR 20 per transaction as nominal charges. Account Accessibility-The customer can monitor and control all funds conveniently through Union Bank Internet Banking and the account’s passbook and statements. Transactional Ease Unlimited payments  Availability of Customizable payment options Receipt of monetary funds from anywhere in the world with ease. Upcountry Cheque Collection Facility. Other Advantages Overdraft Facility. Easy transfer of accounts between the bank’s extensive network of branches without any additional charges. Nomination facility. Low minimum balance requirements. Internet banking facility. Eligibility Any resident individual (for Single Accounts). Two or more individuals (for Joint Accounts). Entities such as Proprietorships, Partnership Firms, and Limited Companies. Disabled Individuals such as Visually Impaired Persons, Illiterate individuals, etc. Minors (if the account is to be operated by the Guardian). Groups such as Associations, Clubs, Societies, Trusts etc. Joint Hindu Families (non-trading accounts only). Government bodies such as Municipalities and Panchayats. Religious Institutions. Educational Institutions (including Universities). Charitable Institutions. Union Classic Current Account (UCCA) UCCA is a premium current account that is tailor-made for Traders, Business Entities, Corporates, and Institutions. Three ranges of Average Monthly Balance has to be maintained in this current account. free facilities are also granted for the account holder based on the AMB maintained in the current account. The AMB ranges from: INR 50,000 to less than INR 1,00,000. INR 1,00,000 to INR 4,99,999. INR 5,00,000 and above The Average Monthly Balance (AMB) in UCCA is calculated from the 16th of a specific month to the 15th of the following month.  Union Classic Current Account for Banks The Union Classic Current Account for Banks (UCCA-B) is designed to cater to needs of banks including Co-operative Banks and RRB’s. This product facilitates the banks for free remittances and free cash transactions up to a pre-determined level. The Average Monthly Balance (AMB) for Scheduled Commercial Banks under in this particular current account is INR 100 Lakhs. The Average Monthly Balance (AMB) for RRBs and Co-operative Banks under this particular current account is INR 50 Lakhs. Charges, as applicable to ordinary Current Accounts, will be imposed for operations over & above the free limits mentioned if the determined AMB is not maintained. Cheque leaves of 100 numbers are available for this account holder.  Union Flexi Current Deposits Whenever the outstanding balance in a Current Flexi Account goes below INR 5,00,000, the gap will be bridged by a transfer from the linked FD Flexi Account in units of INR 100,000. The balance in the Current Flexi Account cannot to go below INR 5,00,000 or the specified initial amount at the time of opening the account unless the flexi-account deposits are exhausted. Transfer of funds from FD Flexi to Current Flexi Account will be under LIFO (Last in First Out) method where the linked FD units created most recently will be closed first for transfer to the Current Flexi Account.  Union Flexi Premium Current Deposit Whenever the outstanding balance in the Premium Current Flexi Account goes below INR 25,00,000, the gap will be bridged by a transfer from the linked FD Flexi Account in units of INR 5,00,000. The balance in Current Flexi Account will not be allowed to fall short than INR 25,00,000 or the desired initial amount at the time of opening the account unless the flexi-account deposits are exhausted. Transfer of funds from FD Flexi to Current Flexi Account will be under LIFO (Last in First Out) method where the linked FD units created most recently will be closed first for transfer to the Current Flexi Account.  FAQs What is a current account with Union Bank of India? A current account is a type of bank account offered by Union Bank of India that is primarily used for business purposes. It allows account holders to make frequent transactions such as deposits, withdrawals, and transfers. What are the features of Union Bank of India’s current account? Features may include: No limit on the number of transactions. Chequebook facility. Internet banking and mobile banking services. Overdraft facility (subject to eligibility). SMS and email alerts for transactions. Dedicated relationship manager for business accounts (in some cases). What documents are required to open a current account with Union Bank of India? The documents required typically include: Identity proof (such as Aadhaar card, passport, PAN card). Address proof (such as Aadhaar card, utility bills, rent agreement). Business registration documents (such as GST registration, partnership deed, memorandum of association). KYC (Know Your Customer) documents for authorized signatories. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit

Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets. It involves an array of financial assets like fixed deposits, stocks, and mutual funds. All the investments are passively held by the investors. Investors who invest in foreign portfolios are known as Foreign Portfolio Investors. Foreign Portfolios increase the volatility. As a result, it leads to increased risk. The intent of investing in foreign markets is to diversify the portfolio and get some handsome return on investments. Investors expect to receive high returns owing to the risk they’re willing to take. Foreign Portfolio Investment is a prominent investment alternative nowadays. From individuals and businesses to even Governments invest in Foreign Portfolios. What Is Foreign Portfolio Investment (FPI)? Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies. Benefits of Foreign Portfolio Investment Investment Diversity- FPI provides investors an opportunity to diversify their portfolio. As an investor, you can diversify your portfolio to achieve high returns. Suppose if you incur major losses in investment assets of a Country X, you can accrue profits in investment assets of a country Y. In this way, you can experience less volatility in your investments and increase chances of profits. International Credit- Investors can get access to increased amounts of credit in foreign countries. They can broaden their credit base. By expanding their credit base, investors can secure their line of credit. In case the domestic credit score is unfavourable, having an international credit score can be beneficial. This allows the investor to utilize more leverage and get high returns on equity investment. Access to a Bigger Market- Sometimes, foreign market can be less competitive than the domestic market. Hence, FPI gives you an exposure to a wider market. The foreign markets are comparatively less saturated and hence, they may offer higher returns and more diversity as well. High Liquidity- Foreign Portfolio Investments provides high liquidity. An investor can buy and sell foreign portfolios seamlessly. This offers buying power for investors to act when good buy opportunities arise. Investors can buy and sell trades in a quick and seamless manner. An investor can leverage the dynamic nature of international currencies. Some currencies can drastically rise or fall, and a strong currency can be used in investor’s favour. Exchange Rate Benefit – An investor can leverage the dynamic nature of international currencies. Some currencies can drastically rise or fall, and a strong currency can be used in investor’s favour. Categories of Foreign Portfolio Investment: Category I: This includes investors from the Government sector. Such as central banks, Governmental agencies, and international or multilateral organizations or agencies. Category II: This category includes : Regulated broad-based funds such as mutual funds, investment trusts, insurance/reinsurance companies.- Also include regulated banks, asset management companies, portfolio managers, investment advisors, and managers. Category III: It includes those who are not eligible in the first two categories. It includes endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals. Eligibility Criteria for Foreign Portfolio Investment As per the Income-tax Act 1961, the applicant should not be a non-resident Indian Should not be a citizen of a country that falls under the public statement of FATF. Must be eligible to invest in securities outside the country. To invest in securities, he/she must have the approval of the MOA / AOA / Agreement. A certificate that grants the applicant holds an interest of the development of the securities market. In case the bank is the applicant, it must belong to a nation whose central bank is a member of the Bank for International Settlements. Factors Affecting Foreign Portfolio Investment Growth Prospects- The economy of a country plays a crucial role in foreign investments. If an economy is robust and growing, investors are more inclined to investing in the financial assets of that country. On the other hand, if the country goes through a financial turmoil or a recession, investors tend to withdraw their investments. Interest Rates- Investors yearn for a high return on investment. Hence, investors prefer to invest in countries with high interest rates. Tax Rates- The tax is levied on capital gains. Higher tax rates reduces the return on investments. Hence, investors prefer to invest in countries which have lower tax rates. Risks Involved in Foreign Portfolio Investment Political Risk Exposure- The change in the political environment may give rise to political risk. This results in a change of investment criteria, economic policies, and repatriation regulations. Low Liquidity- In developing countries, the capital market liquidity often tends to be low resulting in a higher price volatility. FAQs Do FPIs need to enroll with SEBI? No. there is no need for FPIs to directly register from SEBI. The Registration can be granted by a designated depository participant (DDP) instead of SEBI. Whether non-regulated entities are eligible to register as FPIs? Non appropriately regulated entities can register under Category III FPIs. What is the cap for maximum shareholding by FPI? The purchase of equity shares of each company by a single FPI must be below 10% of the total issued capital of the company. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA

In the world of finance, a portfolio manager plays a crucial role in helping individuals and businesses effectively manage their investments. This article will provide a comprehensive guide to portfolio managers, including their roles, the services they offer, the types of portfolio management services, eligibility criteria for registration, and the process of becoming a portfolio manager in India. Who is a Portfolio Manager? Portfolio Manager is a specialized professional in the financial industry who helps individuals or companies manage their investments. They are hired by clients to create strategies that can make money by investing in different types of assets like stocks or bonds. In simpler terms, a portfolio manager is like a trusted advisor who helps people or businesses make smart decisions with their money. They work closely with clients to grow their investments and make sure everything is managed properly according to agreed-upon rules and contracts. In India, a person can operate as a Portfolio Manager only after obtaining valid certificate of registration from the Securities and Exchange Board of India (SEBI) What is Portfolio Management Service? Portfolio Management Services (PMS) are offered by Portfolio Managers to grow your wealth and achieve financial goals using instruments like stocks, mutual funds and bonds. What are the types of Portfolio Management Services? Portfolio Management Services are of two types: i. Discretionary Portfolio Management Services In discretionary portfolio management service, the portfolio manager individually and independently manages the funds and securities of each client in accordance with the needs of the client. ii. Non-Discretionary Portfolio Management Services Under the non-discretionary portfolio management service, the portfolio manager manages the funds in accordance with the directions of the client. Requirements to Become a Portfolio Manager in India The portfolio management company must assign a ‘Principal Officer.’ The Principal Officer is generally the person who leads the investment activities at the PMS. The Principal Officer must have a professional qualification in finance (like CFA) and a minimum of 5 years of financial experience (in portfolio management, accountancy etc.). The Principal Officer must have appeared for and passed the NISM XXI-A and XXI-B examinations. The portfolio management company must assign a ‘Compliance Officer.’ The PMS company must have at least one employee (other than Principal and Compliance Officers) with at least 2 years of experience in investment management. The PMS company must have adequate infrastructure (like office space, laptops, enough employees etc.) to operate as a PMS. The portfolio management company must have a net worth of at least Rs. 5 crore. The portfolio management company must have a clause in their MoA (Memorandum of Agreement) that the company can undertake PMS business. The portfolio management company must have an active bank account in a well-recognised bank. The portfolio management company must have a tie-up with a custodian that will hold the securities under the client’s name/ownership. This is basically having a tie-up with a broker that can provide demat accounts to the PMS clients. The applicant or a related party must not have previously been subject to regulatory action. In rare cases, your application may still be considered if the offence was minor. What are the eligibility criteria to obtain registration as a Portfolio Manager The eligibility criteria for registration as a Portfolio Manager are provided under Regulation 7 (2) of the SEBI (Portfolio Managers) Regulations, 2020. The criteria are as follows: a. The applicant shall be a body corporate; b. The applicant must have the necessary infrastructure, such as adequate office space, equipment and manpower to effectively discharge their activities as a portfolio manager; c. The applicant must have appointed a compliance officer; d. The applicant should appoint a principal officer who should be: > A professional qualified in finance, accountancy, business management or law from a university recognized by the Central Government or State Government or any foreign university or any postgraduate professional qualification obtained from Securities Market (Portfolio Management) from NISM of a duration not less than 1 year or is a CFA;He must have a minimum of 5 years experience in activities related to the securities market, including portfolio manager, stockbroker, investment advisor, fund manager or research analyst; and In addition to the above, the applicant must employ at least one person who possesses the following qualifications: > A graduate from a recognized university; > A person with an experience of at least 2 years in activities related to the securities market including portfolio manager, stockbroker, investment advisor or fund manager. f. No disciplinary action should have been taken by the board against any person connected with the applicant, either directly or indirectly, under the Act, rules or regulations framed hereunder; g. The applicant should fulfill the net worth requirement as specified under Regulation 9 of SEBI (Portfolio Managers) Regulations, 2020, which is INR 5 crore, subject to exceptions; h. The applicant or its director, partner, principal officer, compliance officer or employee should not be involved in any litigation with the securities market that might have an adverse effect on the business of the applicant; i. The applicant should be a fit and proper person; and j. The certificate should be granted to the applicant in the interest of investors How to get registered as Portfolio Manager with SEBI? Step 1: To start the process, complete the application for registration using Form-A and apply for the portfolio manager certificate. Submit all the necessary documents along with a non-refundable application fee of Rs. 1 lakh through the SEBI Portal. Note: While the process is primarily online, SEBI may request a physical copy of the application form if needed. It is recommended to prepare the form in physical format and send it to the designated SEBI officer when requested. Step 2: Allow SEBI some time to review your application and supporting documents. The duration of this review period depends on the number of applications SEBI is currently processing. Step 3: Following the review, SEBI may either request additional information or determine that your application qualifies for the portfolio manager certificate. Step 4: Once SEBI approves your application and considers it suitable for the portfolio manager certificate, you will be

IEPFA-NCAER and IMI conduct workshop to enhance financial literacy among women for a Viksit Bharat in Digital EraWorkshop focused on leveraging digitalisation for financial empowerment and minimising cyber risks through discussions with financial experts and policymakers The Investor Education and Protection Fund Authority (IEPFA), in collaboration with the National Council of Applied Economic Research (NCAER) and the International Management Institute (IMI), hosted a workshop on ‘Promoting Women Financial Literacy for Viksit Bharat through an Effective Investor Education and Protection Regime in the Digital Era’ in New Delhi, today, to mark International Women’s Day.   Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta