Persons to whom this Act applies

Section 3 of Additional Emoluments (Compulsory Deposit) Act, 1974 deals with persons to whom this Act applies. This Act shall apply to an employee of- (a) the Central or State Government;

This Act shall apply to an employee of- (a) the Central or State Government;

(b) a local authority;

(c) a company as defined in section 3 of the Companies Act, 1956, (1 of 1956.) including a foreign company within the meaning of section 591 of the Companies Act, 1956, and a Government company as defined in section 617 of that Act; (43 of 1961.) (d) any other corporation, including a society of body established by, or registered under, a Central, Provincial or State Act;

(e) any individual, association of persons or body of individuals, partnership firm or Hindu undivided family required by the Income-tax Act. 1961 (43 of 1961.) to deduct income-tax at source from the emoluments paid to their employees;

(f) any establishment owned or maintained in India by a trust, fund or institution established for a charitable or religious purpose, and required by the Income-tax Act, 1961, ( 43 of 1961.) to deduct income-tax at source from the emoluments paid to their employees;

(g) any establishment, not being an establishment owned by Government, local authority or person specified, respectively, in clauses (a) to (f) (both inclusive), to which the provisions of any law relating to provident funds (other than those established under the Public Provident Fund Act, 1968) (23 of 1968.) apply;

(h) any other establishment, not being an establishment to which any of the foregoing clauses apply, established at the instance, or in pursuance of a resolution, of the Central or State Government or wholly or substantially financed by the Central or State Government ..

Explanation .- Where any grant or loan to an establishment from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly in a financial year is not less than rupees five lakhs and the amount of such grant or loan is not less than seventy-five per cent. of the total expenditure of that establishment, such establishment shall be deemed, for the purposes of this Act, to be substantially financed by the Central or State Government, as the case may be. 503 Act to have overriding effect. 4. Act to have overriding effect. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. CHAP COMPULSORY DEPOSIT OF ADDITIONAL EMOLUMENTS CHAPTER II COMPULSORY DEPOSIT OF ADDITIONAL EMOLUMENTS Additional Wages Deposit Account and Additional Dearness AllowanceDeposit Account. 5. Additional Wages Deposit Account and Additional Dearness Allowance Deposit Account.

(1) There shall be opened by such authorities as may be specified in the scheme two separate accounts, to be known, respectively, as the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, and different authorities may be specified for different establishments or different categories of employees or establishments.

(2) The specified authority shall, in relation to each Deposit Account, open a separate ledger account in the name of each employee in relation to whom any contribution is made to the said Account, and credit the contributions so made in the said ledger account. Duty of employer or other person to make deductions of additionalwages and additional dearness allowance from emoluments. 6. Duty of employer or other person to make deductions of additional wages and additional dearness allowance from emoluments.

(1) For the purposes of this Act, the deductions specified in sub-section (2) shall be made,- (a) in the case of additional wages, for a period of one year from the appointed day; and (b) in the case of additional dearness allowance, for a period of 1 [three years] from the appointed day.

(2) On the commencement of this section,- (a) every employer, who draws, from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly, and disburses. after the appointed day, emoluments of an employee to whom this Act applies, shall, as and when emoluments are disbursed by him for any period, deduct from the emoluments so disbursed, the whole of the additional wages and one-half of the additional dearness allowance and credit the amount so deducted, in accordance with the scheme, to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively;

(b) every other employer, who disburses, after the appointed day, emoluments to any employee to whom this Act applies, shall, as and when emoluments are disbursed by him for any period, deduct from the emoluments so disbursed, the whole of the additional wages and one-half of the additional dearness allowance, and shall remit, in accordance with the scheme, the amounts so deducted to the nominated authority and on receipt of such amounts the nominated authority shall credit the amounts so received to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account. respectively 1 Subs. by Act 74 of 1976. s. 504 (c) any 2 (w.c.f. 11.6.1976). employee, to whom this Act applies, who draws, after the appointed day, his own emoluments shall,- (i) if he is employed in an establishment owned or maintained by Government, make deductions from his salary bill in respect of the whole of the additional wages and one-half of the additional dearness allowance and the specified authority shall credit the amount so deducted, in accordance with the scheme, to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively;

(ii) if he is employed in any other establishment, remit the whole of the additional wages and one-half of the additional dearness allowance, in accordance with the scheme, to the nominated authority, and on receipt of such amount, the nominated authority shall credit the amount so received to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively.

Explanation .- In computing the amount to be credited to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account. the amount contributed [in relation to such additional wages or additional dearness allowance shall not- (a) to the extent of the contribution which is compulsorily required to be made to any provident or other fund under any law for the time being in force; or (b) to the extent of the contribution made to any other provident fund, recognised under any other law for the time being in force, at a rate 'not exceeding the rate at which such contribution was being made immediate before the appointed day. be taken into account.

(3) The specified authority shall, as soon as may be practicable after the end of each year, prepare separately, in relation to the amounts credited to the respective Deposit Accounts to the credit of each employee, and furnish to the employee a copy of the said accounts showing therein the amounts credited thereto in relation to the employee. Deposit to carry simple interest.

Section 3, Additional Emoluments (Compulsory Deposit) Act, 1974 (Act 37 of 1974).