Legal and Policies
Understanding the PoSH Act: Key compliance requirements for Indian workplaces
The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, popularly known as the PoSH Act or ASH (Anti-Sexual Harassment Act), mandates certain compliances for Indian workplaces. The enactment of this legislation marks significant progress in workplace safety and the prevention of sexual harassment. This Act applies across all sectors. Whether public or private it is mandatory for all workplaces with more than 10 employees. Workplaces with fewer than 10 employees come under the Local Complaints Committee and are not mandated, although it is a best practice to have redressal mechanisms in place. Here are some key compliances required for workplaces in India:
● Internal committee: Workplaces must constitute an Internal Committee (IC) to handle sexual harassment complaints. The IC should consist of four to five members with at least 50 per cent representation of women. A female senior leader should serve as the Presiding Officer, and one external member should be qualified to handle such complaints.
● PoSH policy: Every workplace must create a PoSH policy by the law. This policy should detail the Anti-Sexual Harassment Policy, key definitions, IC details, and the complaints mechanism.
● Training: Workplaces MUST conduct regular training for employees at different levels. This training should raise awareness and provide sensitisation about PoSH, covering the legal aspects. Ideally, trainings should be conducted for employee awareness, manager training, HR training, and especially IC training. If blue-collar staff are present, ensure they receive training in a language they understand.
● Complaint mechanisms: Establish appropriate mechanisms and clearly outline the procedure and time limits for filing complaints. Ensure that all employees understand these processes.
● Display of PoSH policy: Display your PoSH policy in a visible place, such as on notice boards. Consider using innovative methods including posters, placards and digital displays, to communicate the policy effectively.
● Investigation and resolution: The IC must investigate all sexual harassment complaints and submit its findings to the employer. The employer must take appropriate action, recording the reasons in writing. Ensure that all parties are heard, and parties receive a report on the findings.
● Non-compliance: Failure to comply with the PoSH Act can lead to legal repercussions, including fines and imprisonment.
Adhering to these key elements is crucial for compliance with the PoSH Act. It is important to approach workplace safety with genuine commitment, not just for mere compliance.
The article has been authored by Kelp CEO & co-founder Smita Shetty Kapoor.
Legal and Policies
India’s new income tax law and higher F&O levies take effect from 1st April
A sweeping overhaul of the tax code, stiffer securities transaction taxes and relief for travellers and tech firms all land at once
NEW DELHI: India’s tax landscape shifts gears on Tuesday. The Income-tax Act, 2025, which replaces the Income-tax Act, 1961, comes into force from April 1, 2026, alongside a clutch of budgetary measures that will be felt by traders, tourists, technology firms and ordinary taxpayers alike.
The new Act is not a reinvention of tax policy so much as a tidying up of it. Gone is the unwieldy distinction between the assessment year and the previous year; in its place comes a single “tax year” framework designed to be more logical and reader-friendly. Taxpayers will also, for the first time, be able to claim tax deducted at source refunds even when income tax returns are filed after the deadline, without incurring penal charges.
For those who trade derivatives, however, the news is less comfortable. Securities transaction tax on futures contracts rises to 0.05 per cent from 0.02 per cent, while STT on options premiums and the exercise of options is hiked to 0.15 per cent from 0.1 per cent and 0.125 per cent respectively. The government has made no secret of its intent: the higher levy is aimed squarely at curbing speculative bets in the futures and options segment and shielding retail investors from ruinous losses. The numbers tell a grim story. The number of individual investors active in the F&O segment fell from 1.06 crore in FY25 to about 75.43 lakh by December 2025. A Sebi study found that individual investors had racked up net losses of more than Rs 1.05 lakh crore in FY25 alone.
Overseas travellers and those remitting money abroad for medical and education purposes get some relief. Tax collected at source on overseas tour packages has been slashed to 2 per cent from 20 per cent, while TCS on Liberalised Remittance Scheme transfers for medical and educational purposes drops to 2 per cent from 5 per cent.
The data centre industry, too, has reason to cheer. Any foreign company procuring data centre services in India will enjoy a 20-year tax holiday stretching to 2047, shielding its global income from Indian tax authorities. Whether a global firm sets up its own facility or simply buys services from an Indian data centre, the tax treatment will be identical, ensuring a level playing field. India’s effective corporate tax rate stands at 25.17 per cent.
Software companies get a further fillip: the safe harbour threshold for IT services has been raised sharply from Rs 300 crore to Rs 2,000 crore, a move designed to reduce litigation and give the sector greater certainty.
On the transition, the income tax department has confirmed that its e-filing portal will handle compliance under both the old and new Acts during the switchover period. Taxpayers filing returns for assessment year 2026-27, which covers the period governed by the old Act, will do so in July 2026 using the old forms. Advance tax payments for tax year 2026-27, commencing from June 2026, will follow the new Act.
One sweeping law, several sharp edges, and a deadline that waits for no one.
