An employee of Public Sector Company wish to deposit Rs 5,00,000/- as PF Contribution . Whether employer can accept the same . If Yes , what documents ( i.e PAN No. / declaration from employee etc) are required for the purpose .
02 December 2009
He cannot deposit such cash towards PF in the company. Because if company accepts this deposit; Section 58A is attracted of the Companies Act,1956.
Further; penal action under Section 269T of the Income-Tax Act will also be applicable.
Even in PPF account which is opened by Banks and Post Office; more than 70,000/- in a year is not allowed.
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