CA CS Final
243 Points
Joined August 2009
Dear Jay Prakash
The P. F. Contribution is to be deducted -
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On basic wages
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dearness allowance and the retaining allowance if any. {Section 6}
The contribution payable by the employer under the Scheme is 12 percent of the wages of an employee. The contribution payable by the employee under the Scheme is equal to the contribution payable by the employer in respect of such employee.
However, a member, if he so desires, may contribute an amount exceeding 12 percent as the case may be but the employer shall not be under an obligation to pay contribution over and above his contribution payable under the Act.
Provident Fund dues is paid by money order/ by deposit in payees' bank a/c/ through employer/ by depositing the cheque in payees' name or part of amount in annuity scheme in any nationalised bank. Payment by money order is allowed where the amount is not more than Rs. 2000/-.
Thanks With Regards
Shankar