Providend fund contribution

1. AS A PRIVATE LIMITED COMPANY,AND PF ACT IS APPLICABLE TO OUR COMPANY WE ARE DEDUCTING PF FROM EMPLOYEES SALARY AND CONTRIBUTING EQUAL AMOUNT AS EMPLOYERS SHARE EVEN THOUGH THE WAGES EXCEEDING RS.6500/-.

Yes, Its correct practice.

2. SHOULD WE DEDUCT PF WHEN SALARY EXCEEDS RS.6500/- AND IF SO SHOULD THE EMPLOYER CONTRIBUTE FOR THE EXCESS AMOUNT OVER RS.6500/- OR ONLY EMPLOYEES SHARE IS REQUIRED IF EMPLOYEES ARE ALLOWING FOR THE DEDUCTION.

Yes, PF to be deducted even if once Basic was below 6500 & later on exceeded Rs. 6500 limitz.

When employer shary increases 1st time 6500 limit then employer has 2 option either restrict contribution to Rs. 6500 or contribute on Actual Basic. Once option excercised can not be changed.

In case of employee, he may contribute same amount as employer is contributing. Employee can any time contribute more than 12% of PF contribution on Actual basic. Even if employee restricts contribution to 6500 an employee can voluntarily contribute more amount.

3. IS THERE ANY NOTIFICATION/CIRCULAR IN THIS RESPECT TO RESTRICT THE PF DEDUCTION UPTO RS.6500/-.

It is a standard practice followed & for this there is no such circular.

Thanks!!