Extension Of Time Limit To Process Application For Recognition Of EPF Organisation [RULE 4, SCHEDULE IV]
Finance Bill, 2012 as passed by Lok Sabha
Rule 4 in Part A of the Fourth Schedule provides for conditions which are required to be satisfied by a Provident Fund for receiving or retaining the status of “recognized provident fund”. One of the requirements of rule 4 [clause (ea)] is that the establishment shall obtain exemption under section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF & MP Act).
The first proviso to rule 3(1), inter alia, specifies that in a case where recognition has been accorded to any provident fund on or before March 31, 2006, and such provident fund does not satisfy the conditions set out in clause (ea) of rule 4 on or before March 31, 2012 and any other conditions which the Board may specify by rules in this behalf, the recognition to such fund shall be withdrawn.
In order to provide further time to the Employees’ Provident Fund Organization (EPFO) to process the applications made by establishments seeking exemption under section 17 of the EPF & MP Act, the time-limit has been extended from March 31, 2012 to March 31, 2013.
Every epf fund has to be recognised from income tax department ,otherwise employee contribution to non recognised epf fund is not covered under 80c of the income tax act and is taxable under income tax.
what is EPF recognition ?