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Hi Can any body tell me what is the PF and where it is applicable Regards Mukesh
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Hi Mukesh,
Pf is Provident Fund which is deducted 12% of your Basic and same would be contributed by the Company towards the accumulation. Once you leave the company you shall be entitled to withdraw the amount which be given in the form of Cheque within 90days. You can also transfer the same if you are joining an other organization.
Get back to me for any more information.
Thanks and regards
Lava Kumar S C
Is PF withdrawal taxable? I have heard that if you withdraw PF after the age of 60 yrs, its returns are non taxable?
hi hw much % is a person working in a private institute allowed for the sponsership of their childs education any idea................................:confused:
mukesh n lokesh,
one correction...the employer contribution as per the act is 8% and employee contribution is 6 to 8%....if any employer wishes to go beyond this % its a good geusture ,most cos contribute 12% both frm both sides..its a good saving ...
next ..u can take loan advances too from ur pf account.
The no refundable ones are disbursed for:
- purchase of LIC premium.
-house purchase
-loss of employment due to clouser of establishments or medical contigencies.
i want to know the full system about Provident Fund. tell me the duties and responsibilities of HR ASSISTANT in a manufacturing company.
10% or 12% of your (basic+DA) is deducted as PF contribution. PF is applicable to even a causal employee. Once the organisation takes the PF code and shows that it has 20 employee employed under it then they have to deduct the PF. Yes if the basic + DA is more than 6500/- then PF is not applicable.
I hope this helps u....
HR Manager
PF is deducted @12% as a general practice because by this employee would be able to save much and employer, by contributing 12% of employee's basic salary, can claim more expense in income tax.because in Income tax Contribution to PF is exempt upto 12% of basic salary.:smile:
Thanks & Regards,
Hi Mr. ChetanGupta,
If u have a RPF or PPF account.then it would be exempt while receiving in lumpsum at the time of leaving the company after 5 years of joining.and URPF and SPF are exempt upto certain limit specified in Income Tax Act.i have no idea if these are exempt totally after 60 years of age.but i guess u r correct in this 60 years clause.i'll check it out and will get back to u
Thanks & Regards,
Hi Trupita,
It is not the case that if ur basic+DA exceeds 6500/- then ur PF will not be deducted.Deduction Of PF wholly depends on companies' employees strength.My Basic Is 11000 and PF is being deducted from my salary
Thanks & Regards,
Hi Trupita,
See if an Employee getting more than 6500/- (basic+da) then pf is applicable for that particular 6500/- and for remaining amount company can pay or can not pay, thats left to company.
hi friends
How the Employees' Provident Fund Scheme works:
As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:
  • Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97.
  • Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction,
  • Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and
  • Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.

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