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Guide me plz

RamaKrishnan (Student ) (120 Points)

19 July 2008

I have offered CTC Rs.2 Lakhs with a Basic of Rs.8, 000/-

Our HR person has informed me that my Basic exceeds Rs.6, 500/- hence, PF deduction is not compulsory.

If I haven’t opted PF deduction then I can take home my salary without any deduction.

If I have opted PF deduction, then the company’s share also will be deducted from my salary (that is CTC).

If I choose PF what benefit can I enjoy?

If not what am I loosing?

Guide me plz.

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5 Replies

Pooja Chopda (Practising Chartered Accountant) (931 Points)
Replied 19 July 2008

ask a query once

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Pooja Chopda (Practising Chartered Accountant) (931 Points)
Replied 19 July 2008

answered

C.A Alok Mukherjee (service) (462 Points)
Replied 24 July 2008

AS per PF rules, if your basic pay, DA, retaining allowance if any and cash subsidy of food if any do not exceed Rs 6500 then PF deduction on the part of employer is not compulsory. However, if employer and employee opt jointly, the deduction can be made. Employer's liability arises if there is a deduction from employees' account.

PF deduction is alaways advantagious from employee's point of view because employer is bound to deposit equal amount. Hence after the retirement the whole corpus goes to employee.