Provident fund amendments 2014 query
This query is : Resolved
30 December 2014
If an employees monthly basic is Rs.20000 per month then please tell me about additional pf rate and amount of pf
30 December 2014
PF APPLICABLE ON THE BASIS SALARY OF EMPLOYEE. IF EMPLOYEE BASIS SALARY UP TO RS. 15000/- YOU HAVE TO PAY THE PF @ 12%.
EARLIER LIMIT IS RS. 6500/-
EARLIER LIMIT IS RS. 6500/-
30 December 2014
Hi
PF could be 12% of Basic or 12% of Rs. 15000 whichever option chosen by company is correct as per PF law.
Also if basic salary is more than 15k & no pf is deducted then there is no compulsion to contribute PF.
Thanks
PF could be 12% of Basic or 12% of Rs. 15000 whichever option chosen by company is correct as per PF law.
Also if basic salary is more than 15k & no pf is deducted then there is no compulsion to contribute PF.
Thanks
30 December 2014
please tell me about additional pf rate
30 December 2014
Mr. Vaibhav I think you are not aware about the amendments and also as per your reply koi pf kate ya na kate 15000 salary hone par ye kesa rule hua?....please dont reply if you dont know the answer
30 December 2014
Pl read carefully..I said that if your Basic salary is more than 15K then no PF is applicable to such employee.
However when you have deducted PF for such employee once & if his Basic exceeds 15K then you will be required to deduct PF for that employee even though his salary is more than 15K.
In PF there is no concept of additional PF rate.
12% of Rs 1500 is the mandatory contribution payable by the employer. But if the employer is willing to contribute on a higher salary, then there is no bar for that.
Similarly, an employee is free to make any percentage higher than 12% as his share of contribution and that may extend up to 100% of his basic salary.
However when you have deducted PF for such employee once & if his Basic exceeds 15K then you will be required to deduct PF for that employee even though his salary is more than 15K.
In PF there is no concept of additional PF rate.
12% of Rs 1500 is the mandatory contribution payable by the employer. But if the employer is willing to contribute on a higher salary, then there is no bar for that.
Similarly, an employee is free to make any percentage higher than 12% as his share of contribution and that may extend up to 100% of his basic salary.
30 December 2014
Read this FAQ for better understanding of rules:
https://www.caclubindia.com/forum/details.asp?mod_id=233718
Please not it was posted before amendment made in 2014 so basic salary mentioned there is 6500 insted of 15000
https://www.caclubindia.com/forum/details.asp?mod_id=233718
Please not it was posted before amendment made in 2014 so basic salary mentioned there is 6500 insted of 15000
30 December 2014
Please carefully read the amendments there is provision of additional pf thats why i am asking
30 December 2014
can you share the file form where you read Additional pf rate.
30 December 2014
Ok, are you referring to 1.16% on the salary exceeding Rs.15,000 per month?
It is contribution towards pension scheme & not PF thats what created confusion..
Pl read this for clarity..
http://www.livemint.com/Politics/bWl05ddREYDaUP5WAHxfbO/Govt-wont-contribute-to-pension-scheme-of-staff-getting-hig.html
It is contribution towards pension scheme & not PF thats what created confusion..
Pl read this for clarity..
http://www.livemint.com/Politics/bWl05ddREYDaUP5WAHxfbO/Govt-wont-contribute-to-pension-scheme-of-staff-getting-hig.html
30 December 2014
In Short..
With effect from September 1, 2014, wherever the employer and employees have opted to contribute on a salary exceeding INR 6,500/ month,
such an employer and employee will have to exercise a fresh option (within 6 months or such an extended period by the authorities) to contribute on a salary exceeding INR 15,000/ month,
subject to the conditions that such a member would have to contribute the Central Government’s share of contribution at 1.16% on the salary exceeding INR 15,000/ month from his/ her share of contribution.
In case of failure, contribution to the EPS will be limited to 8.33% of INR 15,000/ month effective September 1, 2014.
With effect from September 1, 2014, wherever the employer and employees have opted to contribute on a salary exceeding INR 6,500/ month,
such an employer and employee will have to exercise a fresh option (within 6 months or such an extended period by the authorities) to contribute on a salary exceeding INR 15,000/ month,
subject to the conditions that such a member would have to contribute the Central Government’s share of contribution at 1.16% on the salary exceeding INR 15,000/ month from his/ her share of contribution.
In case of failure, contribution to the EPS will be limited to 8.33% of INR 15,000/ month effective September 1, 2014.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
