Latest news with #SonamChandwani
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Business Standard
4 days ago
- Business
- Business Standard
PF withdrawal decoded: Timelines, common delays, how to ensure smooth claim
Withdrawing your Provident Fund (PF) should ideally be a straightforward process, but in reality, many employees face avoidable delays. Here's a breakdown of how PF withdrawal works, why delays happen, and what you can do to avoid them. How Long Does It Take to Get Your PF? If your KYC is verified and your employer has updated your exit date, the EPFO usually processes your PF claim within 7–15 working days. But often, claims get delayed due to small but critical issues—like mismatched Aadhaar or bank details, or your employer not completing the exit formalities online. "The typical timeline for receiving Provident Fund (PF) withdrawal proceeds, upon successful submission of a claim, ranges between seven to fifteen working days, provided all Know Your Customer (KYC) credentials are duly verified and the employer has confirmed the exit date. However, in practice, delays are frequently encountered due to discrepancies in the employee's Aadhaar, bank account details, or the employer's failure to update the exit status on the Employees' Provident Fund Organisation (EPFO) portal. Under Paragraph 69 of the Employees' Provident Funds Scheme, 1952, the disbursal of PF is to be effected upon due verification, and any unjustified delay in settlement may be challenged before the Regional Provident Fund Commissioner or escalated through the EPFO grievance redressal mechanism," said Sonam Chandwani, Managing Partner at K S Legal Associates. Which Forms Are Required? Form 19 – For final settlement of PF. Form 10C – For EPS (pension scheme) withdrawal if you're below 58 years. Form 10D – For monthly pension if you're 58 or older. Form 15G / 15H – For TDS exemption if your withdrawal is above ₹50,000 and you meet eligibility criteria. "One of the primary procedural difficulties encountered by claimants relates to the determination of the appropriate form to be used, particularly in distinguishing between Form 10C and Form 10D. Claimants often struggle with understanding whether they are eligible for a lump-sum withdrawal or a monthly pension, or whether the exit formalities have been duly completed by the employer. Moreover, confusion persists in relation to the applicability of Form 15G or 15H for TDS exemption, especially in the absence of adequate explanation on the EPFO portal. These procedural ambiguities are exacerbated by the lack of structured legal guidance and the limited responsiveness of the employer or field office concerned," said Chandwani. Why Do PF Claims Get Delayed or Rejected? Exit Date Not Updated: Employers often forget or delay updating the exit date on the EPFO portal. KYC Mismatch: Discrepancies in Aadhaar, PAN, or bank details. Unverified Bank Accounts: Your bank account must be linked and verified with your UAN. E-nomination Not Done: EPFO has made e-nomination mandatory; claims are blocked if this step is skipped. Incorrect Form Use: Many struggle with whether to use Form 10C or 10D, especially for pension-related claims. DSC Approval Pending: Employer's digital signature not provided or delayed. "In many instances, employers default in their obligations under Section 5 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, by not fulfilling exit formalities despite cessation of employment. Such failures often result in the rejection of claims, although employees may seek recourse by filing a complaint against the employer or by raising the issue before the EPFO authorities," Chandwani added. Compliance Checklist Before You Apply Aadhaar, PAN, and bank account verified and linked to your UAN E-nomination completed on the EPFO portal Employer has updated your exit date Appropriate form chosen based on age and eligibility No mismatch in IFSC codes or file formats during upload Claim filed after rent-free period if applicable EPFO has made e-nomination compulsory, and failure to complete the same often results in the portal disallowing the submission of the claim altogether. Technical difficulties during the uploading of documents remain a persistent concern for applicants. Common issues include portal errors during Aadhaar authentication, incorrect or incompatible file formats, file size limitations, and IFSC code mismatches with the bank account number provided. In cases where employer Digital Signature Certificate (DSC) approval is necessary, delays are encountered due to the employer's non-responsiveness or administrative inefficiency. Although these challenges are procedural in nature, they often culminate in the denial or undue delay of statutory entitlements under Paragraph 69 of the PF Scheme. Common Technical Issues Aadhaar verification errors File upload problems due to size or format IFSC code mismatches Portal crashing or not reflecting updated employer status What to Do If Your Claim Is Delayed or Rejected First step: Raise a grievance through the EPFO Grievance Portal Escalation: Approach the Regional PF Commissioner Legal Route: If all else fails, you can file a writ petition in the High Court under Article 226 for enforcement of your statutory rights. Further compliance checks are triggered under the Income Tax Act for TDS purposes. Incomplete fulfilment of these pre-requisites commonly leads to rejection of the application. It is pertinent to note that the EPFO has made e-nomination compulsory, and failure to complete the same often results in the portal disallowing the submission of the claim altogether.
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Business Standard
28-05-2025
- Business
- Business Standard
IBBI allows RPs to invite resolution plans for individual asset sales
In a move aimed at resolving insolvencies of large corporate debtors and conglomerates, the Insolvency and Bankruptcy Board of India (IBBI) has allowed resolution professionals to invite resolution plans not only for the company as a whole but also for the sale of one or more of its assets. The latest amendments to the IBBI regulations for the insolvency of corporate debtors state: 'The resolution professional may, with the approval of the committee, invite expression of interest for submission of resolution plans for the corporate debtor as a whole, or for sale of one or more of the assets of the corporate debtor, or for both.' The IBBI notification dated 26 May also provides that the committee of creditors may direct the resolution professional to invite providers of interim finance to attend as observers, though without voting rights. 'These changes were necessary to address inefficiencies, improve transparency, and protect creditor interests amid evolving economic challenges, as the previous framework struggled with delays and inequitable outcomes. Now, the process should become more flexible and creditor friendly,' said Sonam Chandwani, managing partner, KS Legal & Associates. The Ministry of Corporate Affairs is also expected to introduce an IBC amendment Bill in the upcoming monsoon session of Parliament.
The Hindu
28-04-2025
- Business
- The Hindu
IndusInd Bank to hold senior management accountable as audit confirms incorrect accounting
IndusInd Bank announced that it will take necessary steps to hold the personnel responsible for lapses and shift their roles after an independent audit confirmed incorrect accounting. 'The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,' the bank said in an exchange filing. The lender will take a hit of ₹1,959.98 crore on profit as estimated by the report, the lender said in the filing. The bank already discontinued internal derivative trades beginning April 1, 2024. 'The report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy,' IndusInd informed the stock exchanges. The bank's board must propose a new Chief Executive Officer by late 2025, who would likely be an external candidate with expertise in governance and risk management, to align with RBI's fit-and-proper criteria, said Sonam Chandwani, managing partner at KS Legal & Associates. Additionally, the bank may also face pressure from the board to replace audit committee members to comply with SEBI regulations, she added. 'The Hinduja Group, as promoters, may leverage their increased 26% stake to influence these changes, but any delays could trigger RBI intervention under Section 36AB of the Banking Regulation Act, appointing additional directors to enforce compliance,' Ms. Chandwani added. SEBI may also scrutinise for inadequate reporting to shareholders, which has potential of penalties and stakeholder law suits. The RBI may investigate lapses and in case that confirms 'wilful misconduct or gross negligence,' the bank may have to face fines, or restrictions on treasury operations, she noted. 'The RBI's history of stringent enforcement suggests swift action to safeguard financial stability,' she added. Preventive action like real time transaction monitoring independent risk audits and stricter board accountability, will be necessary, she said. 'The bank's aggressive risk-taking culture, prioritising short-term gains, requires a fundamental overhaul,' Ms. Chandwani added.
Time of India
27-04-2025
- Business
- Time of India
‘A game-changer for taxpayers': GST Appellate Tribunal rules notified - all you need to know
AI generated representative image NEW DELHI: In a landmark move poised to transform India's indirect tax dispute resolution system, the Central government has notified the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, paving the way for the long-awaited operationalization of the GST Appellate Tribunal ( GST AT). Notified under Section 111 of the Central Goods and Services Tax (CGST) Act, 2017, and effective from April 24, 2025, the new rules introduce a digital-first, transparent framework aimed at resolving pending GST appeals, and are being hailed by experts as a "game-changer" for taxpayers seeking timely and fair redressal. The absence of a functional GSTAT has forced taxpayers to seek relief from High Courts, escalating costs and delays. "These rules establish a digital-first, transparent framework to tackle over 8,100 pending GST cases, including more than 2,800 unresolved for over a year, as reported in the recent Compliance Audit of the Central Board of Indirect Taxes and Customs (CBIC)In the absence of a constituted GSTAT, genuine litigants have had to approach High Courts to seek relief from tax recoveries or coercive actions," said Brijesh Kothary, Partner at Khaitan & Co. He added that taxpayers are eagerly awaiting the Tribunal's establishment to address unwarranted tax demands, with the government expediting appointments of judicial and technical members while the Goods and Services Tax Network (GSTN) develops the technology platform for appeal processing. Comprising 124 rules across 15 chapters, the GSTAT Procedure Rules, 2025, mandate electronic filing of appeals through the GSTAT portal, ensuring standardized formats and clear timelines. Sonam Chandwani, Managing Partner at KS Legal & Associates, described the rules as "a pivotal reform to operationalise the GST Appellate Tribunal with a digital-first, transparent, and efficient framework." She emphasized that they "replace an ad hoc system that left taxpayers grappling with delays and inconsistencies" by enforcing online filings, public hearings, and ex parte provisions. Addressing the backlog and procedural challenges Taxpayers intending to appeal adverse orders must deposit 10% of the disputed amount, capped at Rs 20 crores each for CGST and SGST, and notify the proper officer of their intent to file once the GSTAT is operational. "Taxpayers are advised to prepare draft appeals in advance," Kothary noted. The rules aim to reduce High Court litigation, with Chandwani stating they will "slash judicial backlogs, boost taxpayer trust, and align with India's ease of doing-business goals." CA Ashish Niraj, Partner at A S N & Company, Chartered Accountants, highlighted the rules' comprehensive scope: "These rules were long awaited by professionals and business entities, and they contain the whole functioning, procedures, powers, etc. All documentation, order uploads, etc., will be done electronically through the GSTAT portal." He praised clarifications like the Tribunal's power to rectify arithmetical or clerical errors without notice and provisions for reviewing Supreme Court or High Court orders before the same bench. Key highlights of the GSTAT procedure rules, 2025 Effective Date : Rules took effect on April 24, 2025, upon Gazette publication (Rule 1). Applicability: Covers all appeals filed before the GSTAT (Rule 1). Tribunal Structure : Comprises Principal and State Benches with Judicial and Technical Members (Rules 2, 109). Authorized Representatives : Must file valid authority letters, e.g., vakalatnama, to represent parties (Rule 28). Electronic Filing : Appeals must be submitted online via GSTAT portal in prescribed formats (Rules 18, 115). Appeal Requirements : Must include facts, legal grounds, GSTIN, and certified/attested impugned order (Rules 20-21). Paragraph Structure : Each paragraph must address a separate point or argument (Rule 20). Time Computation : Excludes holidays; delays condonable with sufficient cause (Rules 3, 14). Registry Management : Registrar oversees appeal scrutiny, record maintenance, and cause lists (Rule 15). Document Translation : Non-English/Hindi documents require certified English translations (Rule 23). Public Hearings : Open unless restricted; ex parte decisions for absent parties (Rules 7, 42-43). Cause Lists : Published online daily, prioritizing urgent and part-heard matters (Rules 38-39). Miscellaneous Applications : Delay condonation, adjournment, or early hearing applications use GSTAT Form-01 with affidavits (Rule 29). Tribunal Powers : Can summon witnesses and enforce attendance per Code of Civil Procedure, 1908 (Rules 84, 88). Inherent Powers: Allows orders to ensure justice or prevent abuse of process (Rule 10). Recusal Provisions : Members recuse for personal, familial, or professional conflicts, with undisclosed reasons (Rule 106). Order Publication : Signed orders uploaded online; final orders may be published (Rules 51, 52, 115). Fee Structure : Rs 5,000 for inspection/applications; Rs 5/page for certified copies (Rule 119). Case Registers : Maintains registers for provisional appeals, inspections, and Supreme Court cases (Rule 59). Procedural Flexibility : Exemptions or deadline extensions allowed with sufficient cause (Rules 13-14). Abatement Provisions : Proceedings may abate for respondent's death, insolvency, or company wind-up (Rule 44). Error Rectification: Registrar corrects arithmetical, grammatical, or clerical errors without notice (Rules 26, 108). Higher Court Orders : Supreme Court/High Court orders reviewed by President or same bench (Rule 117). Sittings Location : Held at Central Government-notified locations (Rule 7). Operating Hours : Sitting hours are 10:30 AM–1:30 PM, 2:30 PM–4:30 PM; office hours are 9:30 AM–6:00 PM (Rules 8-9). Additional Evidence : Allowed only with Tribunal approval for justice or sufficient cause (Rule 45). Ensuring transparency and fairness The rules prioritize transparency and integrity. "The proceedings under the rules will be open for public unless the tribunal has specifically limited its access," Niraj stated. He also highlighted ethical provisions: "The President or any Member recusing himself may record reasons for recusal; however, no party to the proceedings or any other person shall have a right to know the reasons for recusal." The Tribunal's powers, akin to those under the Code of Civil Procedure, 1908, include summoning witnesses and enforcing attendance, ensuring legally binding outcomes, Niraj added. The rules address procedural nuances, such as abatement of proceedings in cases of a respondent's death, insolvency, or company wind-up, as Niraj noted. "Nothing in these rules shall be deemed to limit or otherwise affect the inherent powers of the Appellate Tribunal to make such orders or give such directions as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Appellate Tribunal," he emphasized, underscoring the Tribunal's flexibility. Implementation and challenges The government is moving swiftly to operationalize the GSTAT. "The Government is expediting the appointment of judicial and technical members for both Principal and State benches of GSTAT, while the Goods and Services Tax Network (GSTN) is simultaneously developing the technology platform for processing appeals," Kothary confirmed. However, digital access remains a concern. "The shift to a tech-driven, uniform Tribunal will expedite dispute resolution, reduce High Court litigation, and foster a predictable GST ecosystem, though challenges like digital access for smaller taxpayers remain," Chandwani added. With a fee structure—Rs 5,000 for record inspection and applications, Rs 5 per page for certified copies—and standardized forms like GSTAT Form-01 and GSTAT Form-06, the rules ensure accessibility and uniformity. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
