SEQUENCE OF THE INTERNSHIP REPORT

EMPIRICAL EXECUTION OF MANAGING EMPLOYEE BENEFITS

AND STATUTORY COMPLIANCE BY HR AT FIXTAX, BENGALURU

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF

BACHELOR OF COMMERCE DEGREE OF BANGALORE UNIVERSITY

BY

SUBRAMANYA D S

REGISTER NUMBER: U03KB21C0036

UNDER THE GUIDANCE OF

MR. PUTTARAJU M

COLLEGE NAME

1
SHREE KRISHNA PU AND DEGREE COLLEGE

COMPANY CERTIFICATE

2
COLLEGE CERTIFICATE

3
 STUDENT DECLARATION

I Subramanya D S hereby declare that this report entitled a study on “Managing

Employee Benefits And Statutory Compliance By HR” study conducted by me
during the summer vacation from 12-03-2024 to 11-04-2024 under the supervision
and guidance of Mr. Puttaraju M Professor of Commerce Shree Krishna PU and
Degree College.

Date: Signature

Place: Mr. Subramanya D S

Reg No: U03KB21C0036

4
 ACKNOWLEDGEMENT

The success and final outcome of this Internship report required a lot of guidance
and assistant from many people and I am extremely fortunate to have their support
till the completion of my report work.

 First I would like to thank Mr. Venkatesh, Chartered Accountant of

FIXTAX for giving me this wonderful opportunity to do an Internship within their
organization.
 I would like to express my special thanks of gratitude to our faculty Co –
Ordinator Mrs. Rashmi D D as well as our Principal Mrs. Yashodha
Harikumar who gave me the golden opportunity to do Internship, which helped
me in learning a lot of new things and also a warm exposure to the world of
accountancy and Finance.
 I would even like to thank my Mentor Mr. Puttaraju Sir who helped me in
every situation their ideas made me to complete the report very early in a very
easy way.
 I would like to thank my Parents who gave me the permission to complete
the Internship and also my friends who always helped me when there was a need
of their help during the project.
 Although this report has been prepared with utmost care and deep routed
interest, even then I accept it respondent and imperfect.
 It is a great opportunity and pleasure for me to express my profound
gratitude to wards all the individual who directly and indirectly contributed
towards completion of this report.

Thank you!

Subramanya D S

B.COM, VI Semester

5
 INDEX

SL No Topics Page No

1 Executive summary 05

2 Chapter-1 Introduction and Organizational 08

profile

3 Chapter-2 Design of the study 39

4 Chapter-3 Discussion/Work description 41

5 Chapter-4 Learning outcomes 68

Bibliography

Annexures

Letter of application to the employer for

Internship

Letter of acceptance by employer

Questionnaires/

6
 EXECUTIVE SUMMARY

I Subramanya D S currently pursuing my graduation in Bachelor of Commerce

with Accountancy and Finance at Shree Krishna Degree College.

 B Com is an undergraduate programme under NEP scheme. Through this

course connect the class room learning to real world environment, an individual
can learn practical, professional and the technical skills associated with many of
the of the procedures financial analysis and accounting standards.
 Bangalore University B.COM program we are having a subject internship
in which we have to work hands on training under a CA Mr Venkatesh for a
period of 4-6weeks.
 As a part of academic, I did my internship at FIXTAX for 30 days (90
hours). In this period I have learned to access managing employee benefits and
statutory compliance by HR was also which I learnt there.
 This project is about my internship and detail information about the task
which had been under taken by me during the internship period.

7
 CHAPTER-1
INTRODUCTION

TITLE OF THE STUDY

HUMAN RESOURCES

Human resources (HR) is the set oof people who make up the workforce of
an organization, business sector, industry, or economty. A narrower concept
is human capital, the knowledge and skills which the individuals commabnd.
Similar terms include manpower, labour, or personnewl.

The Human Resources department (HR department, sometimes just called

"Human Resources") of an organizatuion performs human resource management,
overseeing vaerious aspects of employment, such as compliance with labour
law and employment standards, interviewing and selection, performance
management, adminiastration of employee benefits, organizing of employee files
with the required documents for future reference, and some aspevcts
of recruitment (also known as talent acquisition) and employee offboarding. They
serve as the link between an organization's managrement and its employees.

8
 The duties include planning, recruityment and selection process, posting job ads,
evaluating the performance of employees, organizing resuimes and job
applications, scheduling interviews and assisting in the process and
ensuring background checks. Another job is payroll and benedfits administration
which deals with ensuring vacation and sick time are accounted for, revieewing
payroll, and participating in benefits taskas, like claim resolutions, reconciling
benefits statements, and approving invoices for payment. HR also coordinates
employee relations activities and programs inckluding, but not limited to,
employee counselling. The last job is regular maintenance, this job makes sure
that the current HR fileas and databases are up to date, maintaining employee
benefits and employnment status and performing payroll/benefit-
related revconciliations.

EVOLUTION OF HUMAN RESOURCE

The evolution of HR has been significant, transitioning from a primarily

administrative function to a strategic partner withgin the organizations. Here’s a
brief overview:

1. Administration function
2. Personnel management
3. Stratehgic HR
4. Talent management
5. Trechnology integration
6. Employee experience
7. Daata-driven decision making
8. Diversity, equity, incklusion (DEI)
9. Remote work and flexibility
10. Conbtinuous evoloution

Overall, the evolution of HR reflects a broader shift towards recognizing the

strategic importance of hjuman capital in driving organizational success.

9
10
 HISTORICAL OVERVIEW OF HUMAN RESOURCE

The hisrtorical overview of HR reflets a brooader shift towards recognizing the

strategic importance of human capital in driving organizational suxccess.

1. Industrial rrevolution
2. Scientific management
3. Raise of the personal departments
4. Human relation movements
5. Post world-war II eraa
6. Civil rights movement and equal employment opportunity
7. Strategic HR management
8. Technological advancement
9. Globalization and talent mobility
10. Future trends

Overall, the historical overview of HR demonstrates its evolution from a primarily

administrative functions to a strategice partaner that plays a central role in driving
organizational success and managing the compealexities of the modern workforce.

11
 MODERN DEVELOPMENTS OF HR

Modern developments in HR reflects ongoing transformations in the work place

and society. Here are some key modern developments:

1. Technology integration
2. Remote work and flexible policies
3. Employee experience
4. Diversity, equity, inclusion (DEI)
5. Agilea HR practices
6. Skills development and lifelong learning
7. Well being and mental health support
8. Talent acquisition strategies
9. Environmentale and social responsibility
10. Data privacy and compliance

These modern developments reflect HR’s evolving role in driving organizational

success, fostering employee engagement and addressing the challenges of rapidly
changing workplace landscape.

12
 IMPORTANCE OF HR

Human resources plays a cruciael role in organizations of all sizes and across all
industries. Here are some key reasons highlighting the importance of HR:

1. Talent acquisitieon and retention

2. Employee development and training
3. Employee relations and conflict resolution
4. Performance management
5. Compliance and risk management
6. Culture and organizationael development
7. Strategic planning and decision-making
8. Adapting to change and innovation

HR is vital for attracting, developing, and retaining talent, maintaining positive

employee relations, ensuring legael compliance, shaping organizational culture,
supporting strategic decision-making, and driving orgianizational effectiveness
and success. It is the backbone of an organization’s peeople-centric approach to
achievijng its goals and objectives.

13
 ROLE IN ORGANIZATIONAL SUCCESS OF HR

HR plays a critical role in the success of an organization by focusing on its most

valuable asset: its people. Here are some key ways in which HR contributes to
organizational success:

1. Talent acquisition and retention

2. Strategic workforce planning
3. Employee development and training
4. Performaence management and focusing
5. Employee engagement and morale
6. Culture and values alignment
7. Change management and adaptability
8. Legeal compliance and risk management
9. Strategic partner to leadership
10. Brand ambassador and eamployer branding

14
 HR’s role in organizational success is multifaced and integral to achieving
sustainable growth, profitability, and a positive work place culture. By focusing on
talent acquisition, development, engagement, cuklture-building, compliance, and
strategic alignment with business objectives, HR professionals contribute
significantly to the success and long-term vianbility of the organization.

IMPACT ON EMPLOYEE ENGAGEMENT

HR plays a significant role in impacting employee engagement, which refers to

the emotional commitment and dedication that employees have towards their work
and the organization. A highly engaged workforce is more productive, motivated,
and committed to achieving organizational goials. Here are some ways I which
HR influences employee engagement:

1. Recruitment and onboarding

2. Emplooyee development and training
3. Performance management
4. Employee recooignition and rewards
5. Workplace culture and values
6. Communication and transparency
7. Work-life balance and welll-being
8. Career growth and opportunities
9. Empowerment and decision-making

15
10. Mannaging change and uncertainty

HR has a significant impact on employee engagement by creating a positive work

environment, providing opportunities for growth and development, recognizing
and rewarding achievements, fostering a culture of transparency and
communication, proimoting well-being, and empowering employees. A strategic
focus on these factors not only enhances employee engagement but also
contributes to organizational succeess, productivity, and retention of top talent.

CONTRIBUTION TO STRATEGIC PLANNING

HR contributes significaantly to strategic planning within an organization by

aligning its people strategies with the overall business objectives. here are some
specific ways in which HR plkays a key role in strategic planning:

1. Talent acquisition and workforce planning

2. Succession planning and leadership development
3. Training and development programs
4. Performance management and goal alignment
5. Employee engagement and culture building
6. Change management and organizational development
7. Data analytics and HR metrics
8. Strategic HR initiatives and projects
9. External market analysis and talent trends
10. Strategic partnerships and collaborration

16
In essence, HR’s contribution to strategic planning lies in its ability to understand
the organization’s talent needs, develop and nurture its people, align employee
efforts with strategic objectives, create a positive work culture, leverage data for
informed decision- making, and collaborate with other functions to drive
organizational success. Through these efforts, HR plays a pivotal role in ensuring
that the organization has the human capital it needs to thrive and succeed in a
competitive business landscapee.

17
 FUNCTIONS OF HR

The functions of HR encompass a wide range of activities aimed at managing an

organization’s most valuabble asset-its people. Here are the key functions of HR:

1. Recruitment and selection

2. Onboarding and orientation
3. Employee retention
4. Performance management
5. Training and development
6. Cooompensation and benefits
7. Employee engagement
8. Workforce planning and talent management
9. HR innformation systems (HRIS)
10. Legal compliance and risk management
11. Health and safety
12. Organizational development
13. Diversitty, equity, inclusion (DEI)
14. Employee exit and offbooarding

These functions of HR are essential for the effective management of an

organization’s workforce, fostering a positive work culture, attracting and
retaining top talent , ensuring legal compliance, and suupporting the overall
success and growth of the organization.

RECRUITMENT AND SELECTION

Recruitment and selection are critical functions of HR that invole attracting,

identifying, and hiring the right candidtes to fill job vacancies within an
organization. Here is an overviw of the recruitment and selection process:

Recruitment process:

18
1. Identifying job vacancies
2. Job posting
3. Sourcing candidates
4. Screening resumes and application
5. Conducting initial inteview

Selection process:

1. Conducting in-depth interviews

2. Skills assessmnt and training
3. Reference checks
4. Background check
5. Final selction and job offer
6. Onboarding and integrtion

Key considerations in recruitment and selection:

 Job analysis
 Employer branding
 Candidate experience
 Divesity and inclusion
 Legal compliance
 Efficient communiction

19
 Effective recruitment and selection processes are essential for organizations to hire
the right talent, build a skilled and motivated workforce, and achieve their
business objectives. by aligning recruitment strategies with organizational goals
and values, HR plys a vital role in attracting and selecting candidates who will
contribute to the success and growth of the organization.

TRAINING AND DEVELOPMENT

Training and development are essential functions within HR that focus on

enhancing the knwledge, skills, abilities, and behaviours of employees to improve
their performance, productivity, and effectiveness in their roles. Here is an
overview of training and development proceses:

Trainig process:

1. Training needs analysis

2. Designing training programs
3. Selecting training methods
4. Developing training materials
5. Scheduling and coordination
6. Conducting training sessions
7. Assessment and evolution
8. Feedback and improvement

Development process:

1. Individual development plans (IDPs)

2. Leadership development
3. Career development programs
4. Professional certifications and credentials
5. Cross-training and job rotations
6. Tuition reibursement and educational assistance
7. Soft skills development

20
8. Continuous learning culture

By investing in training and development, organizations can enhance employee

skills, engagement, job satisfaction, and retention rates. HR plays a pivotal role in
designing, implementing, and evaluating these initiatives to ensure that employees
are equipped with the knowledge and capabilities needed to contribute to
organizational success and growth.

PERFORMANCE MANAGEMENT IN HR

Performance management in HR is a comprehensive process that focuses on

optimizing employee performance, enhancing productivity, achieving
organizational goals, and fostering employee development and growth. It involves
various activities and strategies aimed at setting expectations, monitoring
progress, providing feedback, and supporting employees in reaching their full
potential. Here is an overview of performance management in HR:

Key elements of performance management in HR:

1. Goal setting alignmment
2. Performance planning
3. Performance appraisal and evaluation
4. Continuous feedback and coaching
5. Development and training
6. Recognition and rewards
7. Performance improvements plans (PIPs)
8. Documentation and record keeping
9. Legal compliance and fairness
10. Technlogy and tools

Overall, performance management in HR is a dynamic and ongoing process that

aims to create a high-performing workforce, drive organizational success, and

21
 support employee development and engagement. By implementing effective
performance management practices, organizations can maximise the potential of
their employees and achieve sustainable growth and success.

COMPENSATION AND BENEFITS

Compensation and benefits are crucial aspects of HR management, aimed at

attracting, motivating, and retaining employees. Here’s an overview of each:

Compensations:

1. Salary/wages
2. Bonuses
3. Commission
4. Overtime pay
5. Stock option/equity
6. Profit sharing
7. Benefits

Benefits:

1. Health insurance
2. Retirement plans
3. Paid time off (PTO)
4. Flexible spending accounts (FSA)
5. Life insurance
6. Disability insurance
7. Wellness program
8. Education assistance

Importance of compensation and benefits

1. Attracting talent
2. Retention
3. Motivation
4. Legal compliance

22
 Trends in compensation and benefits

1. Remote work benefits

2. Financial wellness
3. Customization
4. Focus on mental health

PROVIDENT FUND

Provident fund is another name for pension fund. Its purpose is to provide
employees with lump sum payments at the time of exit from their place of
employment. This differs from pension funds, which have elements of both lump
sum as well as monthly pension payments. As far as differences
between gratuity and provident funds are concerned, although both types involve
lump sum payments at the end of employment, the former operates as a defined
benefit plan, while the latter is a defined contribution plan.

EMPLOYEE’S PROVIDENT FUND ORGANISATION

The Employes' Provident Fund Organisation (EPFO) holds a pivotal role in India's
social security system, dedicated to ensuring the financial security of employees.

Operating under the jurisdiction of the Government of India's Ministry of Labour

and Employment, the EPFO is entrusted with the regulation and oversight of
provident funds in the nation, in conjunction with the Employees' State Insurance.
Its establishment dates back to 1951 through the enactment of the Employees'
Provident Fund and Miscellaneous Provisions (EPF&MP) Act.

The EPFO's responsibilities encompass the management of mandatory provident

funds, fundamental pension schemes, disability and death insurance, as well as the
facilitation of social security agreements with various international partners.

The first Provident Fund Act, passed in o1925 for regulating the provident funds
of some private concerns, was limited in scope.
In 1929, the Royal Commission on Labour stressed the need for creating
provident funds for industrial workers. In the Indian Labour Conference held in
1948, it was generally agreed that the introduction of a statutory provident fund
for industrial workers should be undertaken. The Coal Mines Provident Fund

23
Scheme was launched in 1948. The success of this fund led to demand for its
expansion to other industries.

The Constitution of India enacted in 1950 a non-justiciable directive that the State
shall, wiithin the limits of its economic capacity, make effective provisions for
securing the right to work, to education and to public assistance in cases of
unemployment, old-age, sickness & disablement and undeserved want.

Accordingly, the last months of 1951 witnessed the promulgation of the

Employees' Provident Funds Ordinance, which came into effect on 15 November
1951. It was replaced by the Employees' Provident Funds Act, which extended to
the whole of India except Jammu & Kashmir.

The Employees' Provident Funds Scheme, framed under Section 5 of the Act, was
introduced in stages and came into force in its entirety by 1 November 1952. The
cement, cigarette, electric, mechanical and general engineering products, iron,
steel, paper, and textile industries were affected by the Act.

The Acts and Schemes framed under it are administered by the Central Board of
Trustees, which consists of representatives of Central and State governments,
employers, and employees. The Board administers a contributory provident fund,
pension scheme and an insurance scheme for the workforce engaged in the
organized sector in India. The board is chaired by the Union Labour Minister of
India.

EMPLOYEE’S STATE INSURANCE CORPORATION

Employees' State Insurance Corporation (abbreviated as ESIC) is one of the two

main statutory social security bodies under the ownership of Ministry of Labour
and Employment, Government of India, the other being the Employees' Provident
Fund Organisation. The fund is managed by the Employees' State Insurance
Corporation (ESIC) according to rules and regulations stipulated in the ESI Act
1948.
Administratively, the organisation is divided into zones that are headed by Zonal
Insurance Commissioner. At present, there are Five Zones across India.
The states have one Regional Offices (RO) which is generally headed by an
additional commissioner or Director Rank officer; the Regional Offices are sub-
divided into Sub-Regional offices (SRO) consisting several districts, SROs are
headed by Director or Joint Director Rank officers. To assist Regional Directors,
there are Deputy Directors, heading various units/ branches and looking after the
enforcement of the Act and Schemes. Many district offices have an Assistant

24
Director or a Social Security Officer, SSO to implement the scheme and to attend
grievances.
The total sanctioned manpower of the ESIC is at present more than 21,000
including all levels. The Deputy Directors are recruited directly, competitively,
through the Union Public Service Commission of India as well as through
promotion from lower ranks. Subordinate Officers are also recruited directly by
ESIC in addition to promotion from the staff cadres.

ESIC ACT

Employees' State Insurance Corporation (ESIC), established by ESI Act, is an

autonomous corporation under Ministry of Labour and Employment, Government
of India. As it is a legal entity, the corporation can raise loans and take measures
for discharging such loans with the prior sanction of the central government and it
can acquire both movable and immovable property and all incomes from the
property shall vest with the corporation.[6] The corporation can set up hospitals
either independently or in collaboration with state government or other private
entities, but most of the dispensaries and hospitals are run by concerned state
governments. The ESIC has its offices throughout the country with Jurisdiction
further dividing into Regional Officees(ROs) & Sub- Regional Offices(SROs).

PROFESSION TAX

Profession tax is the tax levied and collected by the state governments in India. It
is a direct tax. A person earning an income from salary or anyone practicing a
profession such as chartered accountant, company secretary, cost accountant,
lawyer, doctor etc. are required to pay this professional tax. Different states have
different rates and methods of collection. In India, profession tax is imposed every
month. However, not all states impose this tax. The states which impose
professional tax are Karnataka, Bihar, West Bengal, Andhra
Pradesh, Telangana, Maharashtra, Tamil
Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya
Pradesh, Jharkhand and Sikkim, Mizoram. Business owners, working individuals,
merchants and people carrying out various occupations come under the purview of
this tax.
Profession tax is levied and collected by the Commercial Taxes Department of
State Governments, in some states by particular Municipal Corporations and
majority of the Indian states are collecting this tax. It is a source of revenue for the
government. The maximum amount payable per year is INR 2,500 and in line
with tax payer's salary, there are predetermined slabs.

It is also payable by members of staff employed in private companies. It is

deducted by the employer from their employee every month and remitted to state

25
 exchequer and in some states sent to the Municipal Corporation. It is mandatory to
pay professional tax. The tax payer is eligible for income tax deduction for this
payment.[1]
Applicability of Profession Tax as per the Constitution of India: Article 276 of
the Constitution of India provides that "there shall be levied and collected a tax on
professions, trades, callings and employments, in accordance with the provisions
of this Act. Every person engaged in any profession, trade, calling or employment
and falling under one or the other of the classes mentioned in the second column
of the Schedule shall be liable to pay to the State Government tax at the rate
mentioned against the class of such persons in the third column of the said
Schedule. Provided that entry 23 in the Schedule shall apply only to such classes
of persons as may be specified by the State Government by notification from time
to time.

HR professionals play a vital role in designing, implementing, and managing

compensation and benefits packages to align with organizational goals and
employee needs.

EMPLOYEE RELATIONS:

Employee relations in HR involves managing and improving the relationship

between employees and the organization. It encompasses various activities aimed
at fostering a positive work environment, resolving conflicts, and ensuring
employee well-being. Here’s an overview:

Responsibilities in employee relations

1. Communication
2. Conflict resolution
3. Employee engagement
4. Performance management
5. Policy development
6. Employee well-being
7. Legal compliance

Importance of employee relations

1. Positive work environment

2. Retention and recruitment

26
3. Conflict resolution
4. Legal compliance

Stategies for effective employee relations:

1. Proactive communication
2. Training and development
3. Fair policies and procedures
4. Open door policy
5. Recognition and rewards

By focusing on employee relations, HR departments can create a harmonious

workplace where employee are engaged, motivated, and productive. This, in turn,
contributes to the overall success and growth of the organization.

HR TECHNOLOGY

HR technology, also known as HR tech, refers to the use of digital tools and
software to streamline HR processes, enhance efficiency, and improve overall HR
management. Here are some types and examples of HR technology.

1. HR management systems (HRMS)/ Human capital management (HCM) systems

2. Recruitment and Applicant Tracking Systems (ATS)
3. Learning Management Systems (LMS)
4. Performance Management Software
5. Employee Engagement and Feedback Tools
6. Payroll and Benefits Administration Software
7. Employee Self-Service Portals (ESS)
8. Artificial Intelligence (AI) and Analytics

Benefits of HR technology

1. Accuracy and compliance

2. Data-driven decision making
3. Employee experience
4. Cost saving

27
 Implementing the right HR technology can transform HR operations, improve
organizational efficiency, amd ultimately contribute to the success of the business
by better managing its most valuable asset-its people.

HR IN DIGITAL AGE

HR in the digital age is undergoing a significant transformations, driven by

advancements in technology, changing workforce demographics, and evolving
employee expectations. Here are the key aspects of HR in the digital age:

1. Digital transformation
2. Data-driven decision making
3. Remote work and flexible work arrangements
4. Employee experience (EX)
5. Agilee HR practices
6. Talent acquisition and employer branding
7. Learning and development
8. Cybersecurity and data privace

Benefits of HR in the digital age:

1. Efficiency and productivity
2. Enhanced employee engagement
3. Data-driven insights

28
4. Adaptability
5. Global connectivity

HR in the digital age is evolving to be more strategic, employee-centric, and

technology-driven. Embracing these changes allows HR departments to better
support the organization’s goals, attract and retain top talent, and create a dynamic
and thrving workplace culture.

LEGAL AND ETHICAL CONSIDERATIONS IN HR

Legal and ethical considerations are paramount in HR to ensure fair treatment of

employees, compliance with laws and regulations, and maintenance of a positive
work environment. Here are key areas of focus:

1. Equal employment opportunity (EEO) laws

2. Fair labour standards act (FLSA)
3. Family and medical live act (FMLA)
4. Workplace safety and health
5. Privacy and confidentility
6. Ethical considerations
7. Recruitment and hiring practices
8. Employee relations
9. Date protection and cybersecurity
10. Training and compliance

HR professionals plays a critical role in ensuring that the organization operates

within legal boundaries, upholds ethical standards, and maintains a positive and
compliant workplace for all employees.

29
 CHALLENGES AND OPPORTUNITIES IN HR

HR faces a dynamic landscape filles with both challenges and opportunities.

These factors are shaped by changes in technology, workforce demographics,
globalization, and evolving organizational needs. Here are some key challenges
and opportunities in HR:

Challenges in HR:

1. Talent acquisition and retentions

2. Diversity, equity and inclusion
3. Skills gap and training needs
4. Remote work and hybrid models
5. Employee mental health and well-being
6. HR technology implemntation
7. Workplace culture and employee engagement
8. Regulatory compliance

30
 Opportunities in HR

1. Strategic partner to business

2. Data-driven decision making
3. Employee experience enhancement
4. Agile and flexible work models
5. Leadership development and succession planning
6. DEI initatives
7. Wellness programs and work-life balance
8. Employee empowerment and development
9. Global expansion and talent acquisition

By addressing these challenges and embracing the opportunities, HR can play a

strategic role in driving organizational success, fostering a positive work culture,
and empowering employees to thrive in the ever-evolving workplace landscape.

VIRTUAL REALITY (VR) IN TRAINING

Virtual reality in training is a cutting-edge technology that offers immersive and

interactive learning experiences for employees. It allows users to stimulate real-
world scenarios in a controlled, virtual environment, providing hands-on training
without the need for physical equipment or real-world risks. Here, how VR is
revolutionizing training across various industries:

31
 Benefits of VR in training:

1. Realistic simulations
2. Safe learning environment
3. Hands-on experience
4. Engaging and interactive
5. Customized training programs
6. Costs and time savings
7. Feedback and performance tracking

Applications of VR in training:

1. Technical skills training

2. Healthcare and medical training
3. Safety and emergency response training
4. Customer service and soft skills training
5. Onboarding and orientation
6. Compliance training

Examples of VR training solutions:

1. Flight simulators for pilots

2. Medical simulations
3. Manufacturing and assembly training
4. Customer service scenarios
5. Safety and hazardous environment training
6. Soft skills development

Virtual reality in training offers a transformative approach to learning, providing a

safe, engaging, and effective method for employees to develop skills, knowledge,
and confidence in their roles.

32
COMPANY PROFILE

33
 INTRODUCTION ON FIRM

The Financial services industry plays a vital role in the Global Economy,
providing crucial support to businesses and Individuals in managing their financial
affairs.

With in these dynamic industry, FIXTAX as emerged as a reputable and trusted

entity. These industry profile delves in to the key aspect of FIXTAX operations, its
role in the financial services landscape, and the challenges and the opportunities it
faces.

FIXTAX is a distinguished Firm with a Experience 5 Years in the financial service

industry founded in so and so, the Firm has since risen to prominence, offering a
comprehensive suite of services, including Audit and Assurance, Accounting,
Advisory and Management Consultancy. With a commitment to excellence and a
clint-Centric approach, FIXTAX is building Reputation for providing reliable and
high quality Financial solutions across Diverse sectors.

34
 PROFILE OF THE COMPANY

AT FIXTAX BENGALURU

1. Name of the CA Firm FIXTAX

2. Date of Establishment

3. Registration Number
Sole Proprietor
4. Constitution of the
Firm
No 622, 8th Cross, beside
5. Postal Address of the Raghavendra medical, Weavers
Head Office Colony, Pillaganahalli, Bengaluru,
Karnataka 560083

Phone:
6. Contact Details
E-Mail:

7. GSTIN

8. PAN

9. Membership Number

35
 FUNCTIONAL AREA OF THE OFFICE

 Income tax Returns and Filing

 TDS Return Servies
 GST Registration and GST Audit Services
 RERA Registration and Audit Services
 Company Formation and Registration
 LLP Formation or Register
 Partnership Deed Register
 PF Registration and Process
 PT Registration and Process
 ESIC Registration and Process

GST Audit Services

The GST Regulation requires a review of their month to month Compliances by

way of an Audit associated with the yearly return.

Income Tax Return Filing

36
Any one whose early Income is Greater than Rs.2.5 Lakh need to file an Income
Tax Return.

TDS Return Services

TDS Return as to be submitted with any person who’s responsible to with hold tax
at source.
A return is a Quarterly need to be filed in to the income tax department.

37
 GST Registration Services

GST Registration is mandatory for several traders or entities having turnover

over a pre-determined threshold limit.

ESIC Registration and Process

ESIC stands for Employee State Insurance Corporation handled from the
Employee State Insurance Corporation that’s a sovereign body generated by
regulations below the Ministry of Labour and Employment, Government of India.

38
 CHAPTER-2

DESIGN OF THE STUDY

1. Objective of the study

 To study application of managing Employee benefits.
 To determine the Statutory compliance by HR.
 To ascertain performance of every Employee in the Organization.
 To identify the deductions which includes PF, ESI, PT and other statutory
allowances.
 To know the value of time management and punctuality.
 To reduce language barriers.

 To develop quality work environment in our workplace.

 To study practical exposure to the subject.
 To measure quality in our internship duration.
 To find out opportunities to make career in Commerce
 To develop professional skills
 To develop interpersonal and other skills.
 To acquire technical skills like tally, account software, etc..
2. Methodology
 Source of data - Both primary and secondary data

39
 3. Scope of the study:- My study cover managing employee benefits and
statutory compliance by HR at FIXTAX CA at Bengaluru.
4. Limitations:-

My study covers only on managing employee benefits and statutory

compliance by HR at FIXTAX.

 I couldn’t manage to have sequence punctuality in my internship duration.

 True challenge was to bring the theoretical knowledge into real-life

situations.
 It was a steep learning curve to understand some terminologies.
 It was challenging to attend both classes and student intern.

40
 CHAPTER 3

DISCUSSION

EMPLOYEE PROVIDENT FUND (EPF)

The employee provident fund (EPF) is a scheme run by the employees provident
fund organization (EPFO), which is aimed at providing social security and
retirement benefits. Here’s a brief guide that will help you figure out whether
you’re eligible, and how to apply.

What is the eligibility criteria for an employee?

Opening an EPF account compulsory for employees earning a salary of Rs. 15,000
or above, although individuals at any income level can opt for it voluntarily.
Employees are required to contribute a minimum of 12% of their salary, with the
option to contribute more voluntarily.

What is the rule for PF contribution?

A monthly salary contribution of 12% is made to the Employee provident fund

(EPF) by both the employee and the employer. Employees are not obligated to
match employer contributions of up to 12% of their income, although they are
able to do so voluntarily.

EPF contribution percentage

1. Employee Contribution: Employees typically contribute 12% of their basic salary

plus dearness allowance (if any) towards their EPF account.

2. Employer Contribution: Employers also contribute 12% of the employee's basic

salary plus dearness allowance (if any) towards the EPF account. However, out of
the employer's contribution, 8.33% is diverted towards the Employee Pension
Scheme (EPS) if the employee's basic salary and dearness allowance are up to Rs.
15,000. The remaining amount is deposited into the EPF account.

41
3. Optional Voluntary Contribution: Employees have the option to contribute more
than the mandated 12% towards their EPF account, but the employer is not
obligated to match any additional voluntary contributions.

It's important to note that these percentages are subject to any updates or changes
made by the government or the Employees' Provident Fund Organisation (EPFO).
Therefore, it's recommended to verify the current contribution percentages from
official sources or consult with a financial advisor for the most accurate
information.

EPF eligibility criteria for employers

The eligibility criteria for employers to contribute to the Employee Provident

Fund (EPF) in India are as follows:

1. Number of Employees: Employers with 20 or more employees are generally

required to contribute to the EPF scheme. This threshold includes both permanent
and temporary employees, but excludes apprentices.

2. Nature of Business: Most establishments engaged in any industry, trade, or

business that falls under the purview of the EPF Act are required to contribute to
the EPF scheme. This includes entities across various sectors such as
manufacturing, services, construction, etc.

3. Employee Salary Limit: Employers are required to contribute to the EPF scheme
for employees whose basic salary is up to Rs. 15,000 per month at the time of
joining. However, contributions can be made for employees earning above this
limit if they voluntarily opt for EPF coverage or if they were previously covered
and continue to remain employed with the organization.

4. Voluntary Coverage: Employers can choose to voluntarily contribute to the EPF

scheme for employees who are not mandatorily covered under the EPF Act due to

42
 factors such as salary exceeding Rs. 15,000 per month or the total number of
employees being less than 20.

5. Compliance with EPF Regulations: Employers must comply with the regulations
set forth by the Employees' Provident Fund Organisation (EPFO), including
timely deposit of contributions, submission of relevant forms and documents, and
adherence to reporting requirements.

It's important for employers to understand and fulfill these eligibility criteria to
ensure compliance with EPF regulations and avoid any penalties or legal
consequences. Additionally, employers should stay informed about any updates or
changes to EPF laws and regulations issued by the government or EPFO.

PPF eligibility criteria

Only an Indian resident above the age of 18 years can open a PPF account. While
there is no upper limit on the age for opening, a minor can have a PPF opened by
guardian. PPF is usually opened by people who have just entered their
employment. You can also make a minor open one under guardianship but subject
to a maximum deposit of Rs. 1.5 lakh per financial year. All citizens are eligible
for tax exemption under section 80 C up to Rs. 1.5 lakh per year. EPF and PPF
both go hand-in-hand for providing stable retirement corpus.

How to apply for an EPF

If you are applying for new EPF account, you will need to do so through your
employer. You will have to provide all previous employment details, if any,
through Form 11, and all family particulars or nomination details in Form 2.

43
If you are an employer with an organization that employees 20 people or more, it
is mandatory for you to register under EPF scheme. EPF registration requires you
to submit details of your company, as well as details of each of the company’s
owners. You can register for the EPF scheme on the official EPFO website.

PF and EPF withdrawal criteria

EPF allows partial withdrawal for specific purpose after completion of 7 years of
deposit. The purpose of withdrawal needs to be mentioned, such as, marriage,
education of self, sibling or child you can withdraw 50% of the collected amount
so far. Other purpose for which you can withdraw are Purchase and construction
of house, Purchase of land, Renovation of home, and the repayment of home loan
up to 12 months before retirement. For home loan site purchase or construction of
the house you need to have completed 5 years before withdrawal. The maximum
you can withdraw is 90% of the corpus amount.

If u wish to renovate your house you can avail this facility twice-one is 5yeras for
completion of house and next you can avail 10 years later from the first
withdrawal the withdrawal amount is limited to 12 times your monthly salary.

EPF is especially flexible when it comes to withdrawal for Medical reasons of

self, Spouse, Children or Parents no condition for minimum number of years.

For home loan repayment you can withdraw your EPF only after 10 years of
account operation completion.

For retirement-once you cross 57 years, you can withdraw 90% of the entire
corpus.

44
45
Click on ECR (Electronic Credit Report) Upload

46
47
EMPLOYEE’S STATE INSURANCE SCHEME (ESIS)

The primary objective by the Government of India to launch the ESI scheme is to
cover workers from certain health-related contingencies such as permanent or
temporary disablement, sickness, death due to employment injury or occupational
disease, which impacts the earning capacity of the worker or leads to loss of
income. This scheme enables workers to negate the financial burden due to such
unfortunate eventualities. The scheme also offers maternity benefits to the
beneficiaries.

ESIC Contribution

The Employee's State Insurance Corporation (ESIC) is a government body that

manages the ESI scheme. The contribution to the ESIC is made up of two parts:
the employer's contribution and the employee's contribution. The rates are revised
from time to time, but as of July 2019, the employee's contribution rate is 0.75%
of wages, while the employer's contribution is 3.25% of wages. Employees who
earn a daily average wage of up to Rs.176 are exempt from paying contributions,
but the employer must still contribute for them.

What is Covered Under Employees’ State Insurance Scheme?

Details ESI Coverage (As on 31 March 2019)

Number of Insured
3.10 crore
Persons/Family Units

Number of Employees 2.78 crore

Number of Beneficiaries 12.04 crore

Number of Insured Women 58.69 Lakh

Number of Employers, etc. 15.94 Lakh

48
What Is Not Covered Under Employees State Insurance Scheme?

The ESIC scheme currently does not cover workers or employees earning more
than Rs.21,000 per month and in the case of persons with a disability, the
maximum wage is capped at Rs.25,000 per month. Also, in Maharashtra and
Chandigarh, the current threshold for coverage is still 20 employees and not 10
employees in the case of other states or UTs.

Infrastructure of Employees State Insurance Scheme (ESIS):

Particulars ESI Infrastructure Network

In-Patient
151 Hospitals and 42 Annexes
Services

Out-Patient/
1450/188 ESI dispensaries/AYUSH units, and 954 panel
Primary
clinics
Services

Occupational Mumbai (Maharashtra), New Delhi, Kolkata (W.B.),

Disease Centres Chennai (T.N.) and Indore (M.P.)

Payment of Cash 628/185 Branch Offices/Pay Offices supervised by 62

Benefits Regional/Sub-Regional and Divisional offices

When is ESI Registration Required?

If a company/organisation/business establishment employs 10 or more

employees/workers and in the case of Maharashtra and Chandigarh more than 20

49
 employees ESI registration is required. The company should register itself with
the ESIC.

As for workers or employees, they are covered or entitled under ESI when they
earn less than Rs.21,000 per month and Rs.25,000 in the case of a person with
disability. The worker contributes 1.75% of their salary while the employer
contributes 4.75% towards the ESI scheme. Please note that these rates are revised
from time to time. Those workers whose daily average wage is up to Rs.50 are
exempted from contributing to the ESI fund; however, employers will continue to
contribute towards these workers.

Documents Necessary for ESI Online Registration:

Below are the set of documents required for ESI online registration:

1. The Registration Certificate acquired under the Shops and Establishment Act or
Factories Act.
2. Certificate of Registration in case of a partnership or a company.
3. Articles of Association and Memorandum of Association of the company.
4. List of all employees working in the establishment.
5. Compensation details of all employees.
6. PAN Card details of the Business Entity and of all employees.
7. Cancelled cheque of the bank account of the company.
8. List of shareholders and directors of the company.
9. Register which includes the attendance details of the employees.
10. Employer’s Registration Form (Form No.1) which should be downloaded online,
filled and uploaded on the ESIC website along with the above mentioned
documents.

50
51
52
 Once the payment process is completed, you will receive the system generated
ESI Registration Letter known as C-11 to your registered email ID. The C-11 acts
as proof of registration of the company with the ESIC.

How To Apply an ESI Card (Pehchan Card)?

The ESI Card also known as Pehchan Card is an identification card to avail
benefits of the ESI scheme at empanelled hospitals and dispensaries. The card
includes the beneficiaries name, father’s name, address and the unique ESI
insurance number. It also includes the insured person’s photograph and their
dependent’s details.

To download the ESI Pehchan Card, the employer needs to login into their
account on the ESIC portal and fill the respective employee or worker’s details.
Once the process is completed, ESIC will issue the magnetic smart card to either
the employee’s address or may need to visit the ESIC branch to collect the same.

Also, the ESIC has made a new option on their portal to download employee’s
ESI e-Pehchan card. Below is the process to download the e-Pehchan card:

 Step 1: Visit the ESIC Portal and login with your username and password.
 Step 2: On the new page, under the ‘Employee’ section, click on ‘e-Pehchan
Card’.
 Step 3: Select the unit details and click on view.
 Step 4: You can view details of all the employees; however, you also have the
option to narrow down the search by entering the respective employees’ insurance
number and name.
 Step 5: On the same page where you can see details of all the employees, select
‘View Counter Foil’ against the respective employee. This ‘Counter Foil’ is the
‘e-Pehchan’ card.
 Step 6: On the new page, scroll down and click on ‘Print’ which can be
downloaded as a PDF document.

53
 Step 7: On the printout, the respective employee has to sign and affix family or
dependents photographs. This photo has to be attested and stamped by the
employer or the ESIC official.
 Step 8: Ensure to get either the signature and stamp of the employer or the ESIC
office on the e-Pehchan Card.

Employees State Insurance Scheme Hospital List in Karnataka:

 Kalburgi/ Gulbarga
 Peenya
 Rajajinagar

54
 PROFESSIONAL TAX

Professional tax is a tax that is levied by a state government on all individuals who
earn a living through any medium. This should not be confused with the definition
of professionals that indicates people such as doctors.

This is a tax that is to be paid by every single earning individual. The calculation
and amount collected may differ from one state to another but it has a limit of Rs.
2500 per year.

Who are the Professional taxpayers?

 Salary or wage holders

 Members of HUFs (Hindu Undivided Families)
 Earning individuals residing within boundaries and
 An association of a body or person, public or private limited company, any
cooperative society, and others.

Who Collects Professional Tax?

Professional tax is collected by the employers from the monthly salaries and the
Commercial Tax Department is responsible for collecting this tax.

It is then paid by them to the government failing which they can have penalties
imposed on them for not collecting or failing to pay the professional tax. If you
are not working for anyone then you are liable to pay the professional tax
yourself.

 For professionals not working with an employer they can register for it by
applying through a form.
 Once the form is received, a registration number will be issued to the individual.
 Payment of the professional tax can be made under these registration numbers at
banks.

55
 It is also worth noting that, in some states, the government also provides rebates
on the taxes if it is paid in a lump sum for a few years together so it is worth
enquiring about the rules of professional tax in your state.

The following are the two specific certificates that employers need to register for
to pay and charge taxes:

 Professional tax enrolment certificate: For clearing the liabilities with the state
government, the professional tax enrolment certificate authorises the employer to
deduct professional tax from the employees’ salaries.
 Professional tax registration certificate: The professional tax registration
certificate certifies the employer to pay professional tax on their trade or business.

What is the Professional Income Tax Limit?

In 1949, the professional tax was introduced, and the limit of tax was set Rs.250.
The limit was increased by Rs.2,500 in 1988 and the professional tax amount
cannot exceed Rs.2,500. The tax amount depends on the state of employment and
the income slab of the employee.

Professional Tax Applicability

Professional Tax is applicable for the below-mentioned individuals and entities:

 Companies
 Firms
 LLPs
 Corporation
 Societies
 HUF
 Associations
 Clubs
 Legal practitioners such as solicitors

56
 Contractors
 Architects
 Engineers
 Insurance agents
 Chartered Accountants
 CS
 Surveyors
 Tax consultants
 Management consultants
 Medical representatives such as doctors, medical consultants, and dentists.

Professional Tax in Karnataka

Monthly salary (in Rs.) Tax (in Rs. Per month)

Up to Rs.14,999 Nil

More than 15,000 Rs.200

Due Date and Penalty for Paying Professional Tax in Karnataka

Each year, professional tax must be paid by all employers and businesses in
Karnataka with enrolment certificates by the tax slab's deadline of 30 April, or
they must pay a late payment penalty of 1.25% per month.

Karnataka professional tax exemption

Here are the individuals who do not need to pay professional tax in Karnataka:

 Self-employed individuals who have not served as an employee for more than 120
days in a financial year.

57
 Salaried individuals with a monthly gross income of less than Rs. 15,000 per
month.
 Senior citizens above 60 years are eligible for professional tax exemption.
 Blind, deaf and dumb individuals or people diagnosed with nearly 40% of
permanent disabilities.
 Member of the armed forces, such as the army, air force and navy.
 Foreign technicians employed in the Karnataka state.

Why is Professional Tax different for Different States?

Since it is a tax that is levied by the state government, it tends to differ from one
state to another.

 Each state has a slab that it declares and the professional tax is deducted based on
these slabs. Some states and union territories do not charge professional tax too.
 How it is paid is by dividing the annual professional tax due into 12 equal
instalments that are paid every month, except the one paid in February which is
higher than the other months.
 There may also be situations where sources of income falling under different
sectors will also be liable for a separate tax.

For example, in some states, a person running a business in the transport sector
may be required to pay a professional tax of about Rs.50 per annum for each of
the vehicles owned and it may be subject to a cap of Rs.1,000 per annum.

58
 The following is the list of states and Union Territories where Professional Tax is
applicable and where it is not applicable:

The list of states where Professional Tax is Applicable:

 Jharkhand
 West Bengal
 Odisha
 Bihar
 Madhya Pradesh
 Assam
 Tripura
 Nagaland
 Meghalaya
 Sikkim
 Manipur
 Mizoram
 Andhra Pradesh
 Chhattisgarh
 Tamil Nadu
 Kerala
 Maharashtra
 Telangana
 Karnataka

Exemption in Professional Tax

The below-mentioned individuals need not pay Professional Tax:

 Individuals who run educational institutions that teach classes up to twelfth

standard.
 Individuals in the Central Para Military Force (CPMF).

59
 An individual who has one child and has undergone a sterilization operation.
However, the relevant documents must be submitted.
 Any ex-serviceman who comes under SI No.1 (Schedule)
 However, the relevant certificate must be submitted.
 Individuals who have a permit for a single three-wheeler or a single taxi to carry
goods.
 Deaf, dumb, and blind individuals who are earning a salary.
 Civilian non-combatant and combatant members who are part of the Armed
Forces. However, the Army Act must govern the Armed Forces.
 Foreign technicians who have been employed by the state.
 All philanthropic and charitable hospitals that are present in places that come
under below taluk level.

60
 How to fill in the Professional Tax Application form?

The following are the steps to fill the professional tax application form:

 Visit the official website of Professional Tax i.e. http://pt.kar.nic.in

 Click on ‘Enrolment Application’ on the left-hand side of the page
 Select ‘New’, if you are paying professional tax for the first time
 Select ‘Enrolled’, if you have filed tax returns earlier
 Enter the required details, such as:
 Financial year
 Professional tax office
 Type of return
 Business status
 Class of person
 Click on ‘Next’
 Make the payment through credit card, debit card, or net banking
 Download the receipt after making the payment.

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Major difference between PF, ESIS and PT

Certainly! Here are the major differences between Provident Fund (PF), Employee
State Insurance Scheme (ESIS), and Professional Tax:

1. Purpose and objective:

 Provident Fund (PF): PF primarily aims to help employees
accumulate savings for their retirement years, ensuring financial
security post-employment.
 Employee State Insurance Scheme (ESIS): ESIS focuses on
providing social security benefits, including medical, sickness,
maternity, disability, and dependent benefits, to employees and
their families.
 Professional Tax: Professional Tax serves as a source of revenue
for state governments, contributing to public services and
infrastructure development.
2. Funding structure:
 PF: Both employers and employees contribute a portion of the
employee's salary to the Provident Fund, which is then invested to
generate returns.
 ESIS: Contributions to ESIS are made by both employers and
employees, with the funds pooled to provide healthcare benefits
and social security coverage.
 Professional Tax: Professional Tax is deducted by employers from
the salaries of employees and remitted to the state government,
contributing to state finances.
3. Coverage and eligibility:
 PF: Provident Funds are typically available to employees working
in both public and private sector organizations, with eligibility
criteria varying.
 ESIS: ESIS coverage extends to employees in specified sectors and
regions, with eligibility criteria determined by the government.
 Professional Tax: Professional Tax is applicable to individuals
engaged in professional or employment activities, with exemptions
and thresholds varying across states.
4. Benefits and coverage:
 PF: PFs offer retirement savings and financial security to
employees, with accumulated funds available for withdrawal upon
retirement, resignation, or other specified events.
 ESIS: ESIS provides medical benefits, sickness, maternity,
disability, and dependent benefits to employees and their families,
ensuring access to healthcare services and financial support during
periods of need.
 Professional Tax: Professional Tax contributes to state revenues
and supports public services and infrastructure development. It
does not offer direct benefits to employees but helps finance
government initiatives.

62
 5. Regulatory compliance:
 PF: PFs are governed by regulatory authorities such as the
Employees' Provident Fund Organisation (EPFO) in India, which
sets rules and guidelines for contributions, withdrawals, and
investments.
 ESIS: The Employee State Insurance Act regulates ESIS, outlining
provisions related to coverage, contributions, benefits, and
administration.
 Professional Tax: Professional Tax regulations vary by state, with
each state government responsible for imposing and enforcing tax
rates, exemptions, and compliance requirements.
6. Administrative Complexity:
 PF: PF administration involves managing contributions,
investments, withdrawals, and compliance with regulatory
requirements, which can be complex for employers.
 ESIS: ESIS administration includes enrollment of employees,
collection of contributions, processing of claims, and coordination
with healthcare providers, requiring administrative resources and
infrastructure.
 Professional Tax: Professional Tax administration involves
accurate calculation, deduction, and remittance of taxes by
employers, as well as compliance with state-specific regulations
and reporting requirements.

These major differences highlight the distinct features and purposes of Provident
Fund, Employee State Insurance Scheme, and Professional Tax, each serving
specific functions within the realm of employee welfare and social security.

63
Certainly! Here are the disadvantages of Provident Fund (PF), Employee State
Insurance Scheme (ESIS), and Professional Tax:

Disadvantages of Provident fund (PF):

1. Limited liability: Withdrawals from PF accounts are subject to certain

conditions and penalties. This lack of liquidity can be a disadvantage for
employees facing financial emergencies who may need access to their
savings.
2. Inflation risk: PF returns may not always keep pace with inflation rates,
potentially reducing the real value of savings over time. This can impact
the purchasing power of retirees when they eventually withdraw their
funds.
3. Market Volatility: PF investments are subject to market risks, and
fluctuations in investment returns can affect the overall growth of the fund.
During periods of economic downturns, PF balances may experience
declines, impacting retirement savings.
4. Dependency on Employer: PF contributions often involve matching
contributions from employers. In cases where employers fail to meet their
obligations or face financial difficulties, employees may suffer from
reduced contributions or delays in fund accumulation.
5. Administrative Burden: PF administration requires compliance with
regulatory requirements, including accurate record-keeping, timely
contributions, and adherence to investment guidelines. This administrative
burden can be challenging for employers, particularly small businesses
with limited resources.

Disadavantages of Employee state insurance scheme (ESIS):

1. Limited Coverage: ESIS coverage is not universal and is restricted to

specific sectors and regions. Many informal sector workers and self-
employed individuals may not be eligible for ESIS benefits, leaving them
without access to social security protection.
2. Bureaucratic Processes: ESIS involves complex administrative processes,
including enrollment, contribution collection, and claims processing.
Bureaucratic inefficiencies and delays in service delivery may hinder
beneficiaries' access to timely healthcare and benefits.
3. Dependency on Government Funding: ESIS relies on government funding
to sustain its operations and provide benefits to beneficiaries. Budgetary
constraints or changes in government priorities may affect the availability
and adequacy of ESIS services.
4. Limited Scope of Coverage: ESIS primarily focuses on providing
healthcare benefits and may not cover other essential social security needs,
such as unemployment benefits, old-age pensions, or disability support.
5. Inadequate Benefits: ESIS benefits may not always fully cover healthcare
expenses, leaving beneficiaries to bear out-of-pocket costs for treatments,
medications, and other medical services.

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Disadvantages of Professional tax (PT):

1. Financial Burden on Employees: Professional Tax imposes an additional

financial burden on employees, reducing their take-home pay and
impacting their disposable income. This can particularly affect low-income
earners who may struggle to meet their basic needs.
2. Administrative Complexity: Professional Tax compliance requires
accurate calculation, deduction, and remittance by employers. Adherence
to state-specific regulations and reporting requirements can be time-
consuming and resource-intensive for businesses.
3. Lack of Progressivity: Professional Tax rates and thresholds may not be
progressive, disproportionately affecting lower-income earners. This
regressive taxation system may exacerbate income inequality and financial
hardship for vulnerable populations.
4. Compliance Challenges: Professional Tax regulations vary across states,
leading to inconsistencies and compliance challenges for businesses
operating in multiple jurisdictions. Ensuring compliance with diverse
requirements adds complexity to tax administration and increases the risk
of errors or penalties.
5. Limited Revenue Generation: Professional Tax revenue may not always
align with the funding needs of state governments. Economic downturns,
changes in employment patterns, or evasion practices can impact revenue
collection, limiting the effectiveness of Professional Tax as a revenue
source.

These disadvantages underscore the challenges and limitations associated with

Provident Fund (PF), Employee State Insurance Scheme (ESIS), and Professional
Tax, highlighting the need for continuous evaluation and improvement of social
security and taxation policies to address the evolving needs of employees and
businesses.

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While Provident Fund (PF), Employee State Insurance Scheme (ESIS), and
Professional Tax primarily serve social security and welfare purposes, they also
have revenue benefits for the government or employers:

Revenue benefits of Provident fund (PF):

1. Investment Returns: PF contributions are typically invested in various

financial instruments such as stocks, bonds, and government securities.
The returns generated from these investments contribute to the growth of
the fund's corpus, which can be significant over the long term.
2. Tax on Investment Income: In some cases, the interest earned on PF
contributions may be subject to taxation. This tax revenue adds to the
government's overall revenue stream.
3. Employer Contributions: Employers are often required to match or
contribute a certain percentage of their employees' contributions to the PF.
These employer contributions represent additional revenue for the
government, as they are subject to taxation and contribute to the overall
tax revenue.
4. Penalties and Fines: Non-compliance with PF regulations, such as delayed
contributions or improper documentation, may result in penalties or fines
imposed on employers. These penalties generate revenue for the
government and incentivize compliance with PF rules.

Revenue benefits of Employee state insurance scheme (ESIS):

1. Employer Contributions: Employers are required to contribute a

percentage of their employees' wages to the ESIS fund. These
contributions represent additional revenue for the government, which is
utilized to finance ESIS benefits and services.
2. Investment Returns: Similar to PF, ESIS funds are typically invested in
various financial instruments to generate returns. The interest or
investment income earned on these funds contributes to the growth of the
ESIS corpus, adding to the overall revenue.
3. Penalties and Fines: Non-compliance with ESIS regulations, such as
failure to enroll employees or delay in contribution payments, may result
in penalties or fines imposed on employers. These penalties generate
revenue for the government and encourage compliance with ESIS
requirements.

Revenue benefits of Professional tax (PT):

1. Tax Collection: Professional Tax is a direct tax levied on individuals

engaged in professional or employment activities. Employers are
responsible for deducting the tax from employees' salaries and remitting it
to the state government. The revenue generated from Professional Tax
adds to the state's overall tax revenue.
2. Variability in Tax Rates: Professional Tax rates may vary across states and
are often based on income brackets or salary thresholds. Higher tax rates

66
 for individuals with higher incomes contribute to progressive taxation,
resulting in increased revenue for the government.
3. Penalties and Fines: Non-compliance with Professional Tax regulations,
such as failure to deduct or remit taxes, may result in penalties or fines
imposed on employers. These penalties generate additional revenue for the
government and deter tax evasion practices.

Overall, while the primary focus of Provident Fund (PF), Employee State
Insurance Scheme (ESIS), and Professional Tax is to provide social security
benefits and financial protection to employees, they also generate revenue for the
government through various channels such as investment returns, employer
contributions, and tax collections.

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 CHAPTER-4

LEARNING OUTCOMES

 Knowledge about managing employee benefits and statutory compliance by HR.

 Splitting Gross earnings into Basic salary, HRA, Statutory bonuses, Business
allowances and so on.

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 Preparing Salary slip of each Employees based on their Gross earnings and other
deductions.

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 Knowing the Employee’s Pay days.
 Deduction of Provident Fund (PF), Employee State Insurance (ESI), Professional
Tax (PT) from Employees Gross earnings.
 Offer letter of an Employee

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 Letter of appointment of an employee

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

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 Also gained knowledge about Accounting works in Tally, how to use Tally
software. (Tally Prime)

 Creating company in Tally Prime.

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 Creation of ledger and posting entries of bank statement in Tally.

 Making entries of Sales bill

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 Making entres of Purchase bill.

 Making Contra, Purchase and receipt voucher entries.

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 Knowing GST registration process.

 Also knowing GST filing process.

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 Gettimg knowledge about TDS and TDS returns.

 Learned Sections in TDS.

 Acquired knowledge on TDS forms.

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 TDS return due date segregation.


Improve communication skills, communicating with professionals.

 Integrate theory and practice and developing work habits, learn things apart and
more than theoretical knowledge.
 Getting practical experiences in a real life, assess interests and abilities in this
field.
 Improvement of my time management, team, work, etc.
 Adapting quickly to changing environments, get exposure to do a work in an
organization and also came to know about organizational behaviour ethical rules
and regulations.
 Plan for future and how to adjust in an organization.
 I met quite a few amazing people who were very warm and caring towards me and
also very willing to share their knowledge and expertise. During the internship I
really felt like it became my second home and I am very grateful to them for it.
 On the whole, this internship was a useful experience. I have gained new
knowledge skills and met many new people. I achieved several of my learning
goals, I got insight into professional practice.

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 The internship was also good to find out what my strength and weakness are. This
helped me to define what skills and knowledge I have to improve in the coming
time. It would be better that the knowledge level of the language is sufficient to
contribute fully.
 This internship has been an excellent and rewarding experience.
 Two main things that I’ve learned is the importance of time-management skills
and self-motivation.
 At last this internship has given me new insights and motivation to pursue a career
in accounting.

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 BIBLIOGRAPHY

The reference made from Chrome websites, Chat GPT and also some PDF’s of
FIXTAX CA firm prepared by MR VENKATESH for there reference, and the
order followed is –

For Chrome Websites:

 https://en.wikipedia.org/wiki/Human_resources
 https://www.acko.com/health-insurance/employees-state-insurance-
scheme/
 https://cleartax.in/s/professional-tax
 https://www.bajajfinserv.in/investments/what-is-provident-fund
 https://cleartax.in/s/professional-tax-karnataka
 https://www.epfindia.gov.in/site_en/index.php
 https://pt.kar.nic.in/
 https://www.esic.gov.in/

For PDF’s:
 Statuotory-VENKY.docx
 GST Registration.pdf
 GST Filing.pdf
 Pdf&rendition=1.pdf




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