The IMC Chamber of Commerce organised a seminar on “Definition and Inclusions & Exclusions of ‘WAGE’ under the Four Labour Codes, along with the related Income Tax and Other Tax Ramifications”.
The seminar focused on the implications of the revised definition of “wages” under the four Labour Codes and its impact on employers, employees, taxation and compliance. Discussions highlighted the revised wage structure and its implications for payroll, employee benefits and statutory compliance.
The deliberations examined key aspects of the proposed framework, including the classification of employees based on the nature of duties performed, minimum wages, employee benefits, pension provisions, gratuity and equal pay. Participants also discussed the need for organisations to review and restructure compensation policies to ensure compliance and avoid potential financial liabilities.
On income tax ramifications of the Codes, the discussion explored the tax and accounting implications arising from changes in wage structures, particularly with respect to gratuity and employee benefit costs. Issues such as the tax treatment of funded and unfunded gratuity schemes, deductibility under the Income-tax Act, accounting treatment of gratuity liabilities, contribution limits, judicial precedents and financial reporting requirements.
Page Source : Free Press Journal
