Provident Fund

Mistakes MSMEs Should Avoid While Filing Provident Fund Returns

Corporate Law - EPF has been issuing notices left right & center. Leveraging data from co departments such as ESI, INCOME TAX & PT they are finding creative ways to slap notices and fines. Ambiguity in law & various interpretations of the law has also led to many companies being fined. But one thing is clear. It is […]...

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Withdrawal of Provident Fund

Corporate Law - WITHDRAWAL OF PROVIDENT FUND Employee Provident Funds Scheme, 1952 Chapter VIII of the Employees’ Provident Funds Scheme, 1952 provides the purposes for which Provident Fund (PF) can be withdrawn by the member employee, such as: Para 68 B/BB/BC Housing Loan/ Purchase of site/House/Flat or for construction/ Addition, alteration in existi...

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An Overview of Employee Provident Fund – Withdrawal

Corporate Law - CS Lily Bali We all know that provident fund is a welfare scheme for employees and where both employer and employee contribute their  part but it’s a liability of employer to deposit whole part. Employer deducted the employee share from the salary of the employee. PERCENTAGE OF CONTRIBUTION:  Both employee and employer are required to...

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Disallowance of Employee Contribution to PF- Analysis of Case Laws

Corporate Law - Article on Disallowance Of Employees’ Contribution To Provident Fund Or Superannuation Fund Or Gratuity Fund Or Any Other Fund For The Welfare Of Employees. Section 43B(b) r.w.s. 36(1)(va) of the Act....

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Online EPF Transfer Process

Corporate Law - Employees’ Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued Instructions for transfer online EPF during this Pandemic situation (COVID-19). In case of change of Job, it is important to switch EPF account from previous employer to the new employer. Prerequisites: i. must ha...

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EPFO extends time limit for submission of Jeevan Pramaan Patra

Corporate Law - EPFO has extended the time limit up to 28th February 2021 for submission of Life Certificate (Jeevan Pramaan Patra-JPP) in respect of the Pensioners drawing pension under EPS 1995 and whose Life certificate is due in any month till February 28, 2021. Presently a Pensioner can submit JPP anytime during the year upto 30th November,  which ...

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EPFO’s clarification on misleading article published in newspaper

Corporate Law - EPFO) stated that an article was published in a section of media on 18.11.2020 under the caption EPFO subscribers, firms down in Oct. In this regard, EPFO has categorically clarified that the information contained in the article is incorrect and unsubstantiated....

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Whatsapp helpline Number of Registered EPFO Offices Across India

Corporate Law - The Employees’ Provident Fund Organisation (EPFO), is an organisation tasked to assist the Central Board of Trustees. Employees’ Provident Fund is a statutory body established by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Empl...

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EPF Contribution rate reduction for May 2020 to July 2020

Corporate Law - An Overview of announcement by honorable finance minister Nirmala Sitharaman on Wednesday 13/05/2020 regarding EPF contribution by which EPF Contribution was reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months i.e. May 20, June 20 & July 20. Union finance minister N...

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EPFO updates KYC for 52.62 lakh subscribers since 1st April, 2020

Corporate Law - To extend the availability and reach of online services, which have become crucial in the wake of the COVID-19 pandemic, EPFO updated Know your Customer (KYC) data for its 52.62 lakh subscribers in the month of April and May 2020....

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Employees contribution to EPF & ESIC allowable if paid within relevant due date

PCIT Vs Orchid Pharma Ltd. (Madras High Court) - PCIT Vs Orchid Pharma Ltd. (Madras High Court) Employee’s contribution should be paid within the due date as provided in the related statutes to be allowed as deduction under Section 36(1)(va) of the Act.  A Division Bench of the Kerala High Court in the case of CIT Vs. M/s.Merchem Ltd. [repo...

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Employees’ contribution to EPF & ESIC deposited beyond due date not allowable

Pr. CIT Vs Orchid Pharma Ltd. (Madras High Court) -  Employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1)....

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Contractual employees entitled to Employee Provident Fund benefit: SC

Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court) - Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court) Members of the Respondent ­Union have been in continuous employment with the Company for long periods of time. They have been receiving wages/salary directly from the Company without the involvement of any contractor si...

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Implication of Supreme Court Verdict on Provident Fund

Regional Provident Fund Vs Vivekananda Vidyamandir And Others  (Supreme Court of India) - Supreme Court's (SC) ruling on Provident Fund on Thursday (28 February, 2019) states that employers can't segregate special allowances from basic salary. It has to be included for PF deductions under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, said a bench of Justices Arun...

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PF is applicable on Basic salary plus all allowances except HRA: SC

Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir and Others (Supreme Court) - Regional Provident Fund Commissioner Vs. Vivekananda Vidyamandir and Others (Supreme Court) Basic wage, would not ipso­facto take within its ambit the salary breakup structure to hold it liable for provident fund deductions when it was paid as special incentive or production bonus given to more mer...

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7.1% Interest on Deposit under non-government PF, superannuation & gratuity

F. No. 5(2)-B(PD)/2020 - (27/10/2020) - Govt notifies 7.1% interest rate on Deposit made under non-government PF, superannuation and gratuity w.e.f. 1st October, 2020. Revised GPF Interest Rate is applicable for the period from 1st October, 2020 to 31st December, 2020 and is applicable on following funds- i) The General Provident Fund (Ce...

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EPFO: Attachment of bank accounts for enforcing appearance

File No: LC 4(42) 2020/ E- 26035/794 - (14/09/2020) - Instances have been noticed in which the officers conducting inquiries u/s 7A have issued orders to attach/freeze bank accounts of the establishments/ personal accounts of the employers for alleged non-appearance in such inquiries. Such practices have attracted a lot of adverse observations from Con...

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Implications of AI on the Indian Economy

No.13/07/2020-2021/PDNASS/Misc./ - (26/08/2020) - NASSCOM, a not-for-profit industry association, is the apex body for the 180 billion dollar IT BPM industry in India, an industry that had made a phenomenal contribution to India's GDP, exports, employment, infrastructure and global visibility. In India, this industry provides the highest employment...

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7.1% Interest on PF deposit WEF 01.07.2020 to 30.09.2020

F. No. 5(2)-B(PD)/2020 - (13/07/2020) - It is announced for general information that during the year 2020-2021, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st July, 2020 to 30th September, 2020. This rate will be...

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Lower EPF rates applicable on salary for May, June & July 2020

Notification No. S.O. 1513(E) - (18/05/2020) - Lower rate of EPF subscription 10% with EPFO notified placing higher liquidity in the hands of employees and employers during COVID -19 pandemic. Government Sector, their PSEs and establishment whose subscription is being borne by Union Government under PMGKY continue to have subscription at old rat...

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Recent Posts in "Provident Fund"

EPFO extends time limit for submission of Jeevan Pramaan Patra

EPFO has extended the time limit up to 28th February 2021 for submission of Life Certificate (Jeevan Pramaan Patra-JPP) in respect of the Pensioners drawing pension under EPS 1995 and whose Life certificate is due in any month till February 28, 2021. Presently a Pensioner can submit JPP anytime during the year upto 30th November,  which ...

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Posted Under: Corporate Law |

EPFO’s clarification on misleading article published in newspaper

EPFO) stated that an article was published in a section of media on 18.11.2020 under the caption EPFO subscribers, firms down in Oct. In this regard, EPFO has categorically clarified that the information contained in the article is incorrect and unsubstantiated....

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Posted Under: Corporate Law |

7.1% Interest on Deposit under non-government PF, superannuation & gratuity

F. No. 5(2)-B(PD)/2020 (27/10/2020)

Govt notifies 7.1% interest rate on Deposit made under non-government PF, superannuation and gratuity w.e.f. 1st October, 2020. Revised GPF Interest Rate is applicable for the period from 1st October, 2020 to 31st December, 2020 and is applicable on following funds- i) The General Provident Fund (Central Services); ii) The Contributory Pr...

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Mistakes MSMEs Should Avoid While Filing Provident Fund Returns

EPF has been issuing notices left right & center. Leveraging data from co departments such as ESI, INCOME TAX & PT they are finding creative ways to slap notices and fines. Ambiguity in law & various interpretations of the law has also led to many companies being fined. But one thing is clear. It is […]...

Read More
Posted Under: Corporate Law |

Whatsapp helpline Number of Registered EPFO Offices Across India

The Employees’ Provident Fund Organisation (EPFO), is an organisation tasked to assist the Central Board of Trustees. Employees’ Provident Fund is a statutory body established by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Empl...

Read More
Posted Under: Corporate Law |

Withdrawal of Provident Fund

WITHDRAWAL OF PROVIDENT FUND Employee Provident Funds Scheme, 1952 Chapter VIII of the Employees’ Provident Funds Scheme, 1952 provides the purposes for which Provident Fund (PF) can be withdrawn by the member employee, such as: Para 68 B/BB/BC Housing Loan/ Purchase of site/House/Flat or for construction/ Addition, alteration in existi...

Read More
Posted Under: Corporate Law |

EPFO: Attachment of bank accounts for enforcing appearance

File No: LC 4(42) 2020/ E- 26035/794 (14/09/2020)

Instances have been noticed in which the officers conducting inquiries u/s 7A have issued orders to attach/freeze bank accounts of the establishments/ personal accounts of the employers for alleged non-appearance in such inquiries. Such practices have attracted a lot of adverse observations from Constitutional Courts and other quarters....

Read More

Implications of AI on the Indian Economy

No.13/07/2020-2021/PDNASS/Misc./ (26/08/2020)

NASSCOM, a not-for-profit industry association, is the apex body for the 180 billion dollar IT BPM industry in India, an industry that had made a phenomenal contribution to India's GDP, exports, employment, infrastructure and global visibility. In India, this industry provides the highest employment in the private sector....

Read More

An Overview of Employee Provident Fund – Withdrawal

CS Lily Bali We all know that provident fund is a welfare scheme for employees and where both employer and employee contribute their  part but it’s a liability of employer to deposit whole part. Employer deducted the employee share from the salary of the employee. PERCENTAGE OF CONTRIBUTION:  Both employee and employer are required to...

Read More
Posted Under: Corporate Law |

Disallowance of Employee Contribution to PF- Analysis of Case Laws

Article on Disallowance Of Employees’ Contribution To Provident Fund Or Superannuation Fund Or Gratuity Fund Or Any Other Fund For The Welfare Of Employees. Section 43B(b) r.w.s. 36(1)(va) of the Act....

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Posted Under: Corporate Law |

7.1% Interest on PF deposit WEF 01.07.2020 to 30.09.2020

F. No. 5(2)-B(PD)/2020 (13/07/2020)

It is announced for general information that during the year 2020-2021, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st July, 2020 to 30th September, 2020. This rate will be in force w.e.f. 1st July, 2020. The fun...

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Online EPF Transfer Process

Employees’ Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued Instructions for transfer online EPF during this Pandemic situation (COVID-19). In case of change of Job, it is important to switch EPF account from previous employer to the new employer. Prerequisites: i. must ha...

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Posted Under: Corporate Law |

Reduction in Contribution to the Provident Fund – 14 FAQs

Due to the adverse effects of COVID-19 on the economy, the Government has released several relief measures to increase liquidity in the economy. Prominent measures have been announced pertaining to the Employee’s Provident Fund Scheme....

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Posted Under: Corporate Law |

EPF Contribution rate reduction for May 2020 to July 2020

An Overview of announcement by honorable finance minister Nirmala Sitharaman on Wednesday 13/05/2020 regarding EPF contribution by which EPF Contribution was reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months i.e. May 20, June 20 & July 20. Union finance minister N...

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Posted Under: Corporate Law |

EPFO updates KYC for 52.62 lakh subscribers since 1st April, 2020

To extend the availability and reach of online services, which have become crucial in the wake of the COVID-19 pandemic, EPFO updated Know your Customer (KYC) data for its 52.62 lakh subscribers in the month of April and May 2020....

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Posted Under: Corporate Law |

Recent amendment of Employee Provident Fund

What is Employee Provident Fund and the latest amendment. Employees’ Provident Fund or EPF is a popular savings scheme that has been introduced by the EPFO under the supervision of the Government of India. This is focused mainly on the salaried class of India to inbuilt their habit of saving money to build a substantial retirement co...

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Posted Under: Corporate Law |

Withdrawal from Provident Fund before Completion of 5 years taxable?

Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO (Employees Provident Fund Organisation) to deduct Tax (TDS) from the withdrawal amount, if the withdrawal happened before completing five years of subscription. Tax officials have cited a rule in the 1961 Income-Tax Act that taxes PF withdraw...

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Posted Under: Corporate Law |

COVID-19 Specific Process to Claim Your PF Advance

1. Login to Member Interface of Unified Portal http://unifiedportal-mem.epfindia.gov.in 2. Go to online services and Click on Claim (Form-31,19,10C & 10D) Tab 3. Enter your Bank account number and Verify. 4. Click on ‘Proceed for Online Claim’ 5. Select PF Advance (Form 31) Form the Drop Down Menu 6. Select Purpose as R...

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Posted Under: Corporate Law |

Revised EPF Contribution Rate for May, June and July, 2020

Employee Provident Fund (EPF) refers to the scheme which provides monetary benefits to the salaried class people upon retirement. It is governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF & MP Act 1952). The Act extends to the whole of India except the State of Jammu and Kashmir. It is applicab...

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Posted Under: Corporate Law |

Clarification on EPF Deductions under Covid-19 Relief

Clarification on Employees Provident Fund Deductions (EPF) Under Covid-19 Relief On 13th May 2020, Government of India announced relief under Employees Provident Fund Act for all eligible establishments stressed due to Covid-19. The relief announced was as under, 1. **For all those employees and establishment who are NOT covered under Pra...

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Posted Under: Corporate Law |

Reduction in statutory rate of EPF contribution from 12% to 10% – FAQs

FREQUENTLY ASKED QUESTIONS Reduction in statutory rate of EPF contribution from 12% to 10% Q 1. What is revised rate of EPF contribution announced by the Central Govt. under Atmanirbhar Bharat package? Ans. Under this package the statutory rate of EPF contribution of both employer and employee has been reduced to 10 percent of basic [&hel...

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Posted Under: Corporate Law |

Support & reduction in EPF contribution for businesses & workers by GOI

Support and reduction in Employee’s Provident Fund (EPF) contribution for businesses and workers by the GOI The wage-earners earning below Rs.15000/- per month in businesses having less than 100 workers are being supported by the Government of India (GOI) by way of Pradhan Mantri Garib Kalyan Package (PMGKP). On 26th March 2020, FM ...

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Posted Under: Corporate Law |

Lower EPF rates applicable on salary for May, June & July 2020

Notification No. S.O. 1513(E) (18/05/2020)

Lower rate of EPF subscription 10% with EPFO notified placing higher liquidity in the hands of employees and employers during COVID -19 pandemic. Government Sector, their PSEs and establishment whose subscription is being borne by Union Government under PMGKY continue to have subscription at old rates of 12%. Lower rates to be applicable ...

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No penalty for delayed deposit of EPF dues during lockdown

No. C-1/Misc./2020-21/Vol.I/112 (15/05/2020)

Considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay....

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PF Transfer Claims for Employees- FAQs

Q.1: How do I know if I require a PF transfer? Ans. If the member has more than one PF member IDs (MIDs) and the PF amount of these MIDs has not been transferred into the latest MID, member is required to get his PF transferred into his current MID. Q.2: What are the types […]...

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Posted Under: Corporate Law |

Employer’s DSC /e-Sign in Lockdown Period on EPFO portal- FAQs

Q.1: Why is it necessary to have DSC/e-Sign? Ans. Many important tasks like KYC attestation, transfer claim attestation etc are done online by the authorized persons of employer using their digital signatures or Aadhaar based e-Sign on EPFO portal. This ensures seamless online service to members. Q.2: What role does EPFO plays in use of [...

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Posted Under: Corporate Law |

Taxability of PF paid by government, due to COVID-19

As we are all aware that in this hard times of COVID-19 pandemic, government of India has provided various relief to the people and one such benefit includes paying 24% (12% of employer and 12% of employee) share of PF. This benefit is not extended to every establishment, but to the ones having the count […]...

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Posted Under: Corporate Law |

Email mechanism to obtain e-Sign for easing Process of EPF Compliance

EPFO introduces email mechanism to obtain e-Sign for easing the Process of EPF Compliance by Employers during Lockdown Period as employers were finding difficult to use digital or Aadhaar based e-Sign...

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Posted Under: Corporate Law |

Provident Fund – A summary Note

All employees are eligible for becoming the member of PF who is employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.)....

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Posted Under: Corporate Law |

7 FAQ’s on EPF ECR Filing & Payment of Contributions

Employees' Provident Fund Organization, India Ministry of Labour & Employment, Government of India has issued 'Frequently Asked Questions: ECR Filing And Payment Of Contributions' dated 03rd May, 2020. ...

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Posted Under: Corporate Law |

Steps to Withdraw Advance Provident Fund Claim (Only for Covid-19 Pandemic Period)

Due to the lock down amidst Covid-19 Coronavirus Pandemic, Government of India has allowed the employees covered under the Employees Provident Fund Act to withdraw their Provident Fund accumulations as advance withdrawals. The employees in service to withdraw 75% of accumulated balance or 3 months of salary (Basic +DA) or the claim amount...

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Posted Under: Corporate Law |

Steps to approve employees provident fund member KYC by employer

It is the responsibility of every employers of establishments covered under the Employees Provident Fund Act to ensure updation of KYC details by the employees covered under the Employees Provident Fund Act. Every employee covered under the Employees Provident Fund Act has to update their personal KYC details from their respective Provide...

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Posted Under: Corporate Law |

20 FAQ’s on EPF Advance to Fight Covid-19 Pandemic

Employees’ Provident Fund Organization, India, Ministry of Labour & Employment, Government of India has issued FREQUENTLY ASKED QUESTIONS ON EPF ADVANCE TO FIGHT COVID-19 PANDEMIC Dated 26/04/2020. FAQ’s ON EPF ADVANCE TO FIGHT COVID-19 PANDEMIC Q1: What is the process for change in name on marriage of a woman member against UAN w...

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Posted Under: Corporate Law |

Employees Provident Fund withdrawal during COVID -19

We will take you through the withdrawal process for Provident Fund which is an online process and all such claims are processed on a priority basis by the EPFO. So far 3.31 lac PF withdrawal claims have been processed by the EPFO in 15 days....

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Posted Under: Corporate Law |

Treatment of Contribution towards Provident Fund under Income Tax Act, 1961

Contribution towards Provident Fund is one of the area, which requires due consideration of Auditor while conducting Tax Audit. In industry, there are some confusions regarding the treatment of Contribution towards Provident Fund. Through this Article, I am trying to interpret the intent of the Act with regard to these provisions. Employe...

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Exemption for amount received from Statutory & Recognized PF

Exemption for amount received from Statutory and Recognized Provident Fund Provisions of section 10(11) of the Income Tax Act exempts any payment received from the ‘Statutory Provident Fund’, whereas, provisions of section 10(12) of the Income Tax Act exempts the accumulated balance payable to an employee participating in the ‘Recog...

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Posted Under: Corporate Law |

Employees Provident Fund & Miscellaneous Provisions Act 1952- Analysis

Provident fund & miscellaneous provisions act 1952 This article gives you basic information and practical aspects of the Act. This article will help to solve majority of the minor doubts which arise while complying under the Act. Labour Laws of India refers to laws regulating labour in India. The Constitution of India gives us series ...

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Posted Under: Corporate Law |

ECR filing due date extended to 15.05.2020 due to COVID-19

Notification No.C-I/Misc./2019-20/Vol.II/Part./9 and Press Release ID: 1614747 (15/04/2020)

It is Clarified that the employers who seeks  to avail the Relief, need to file ECR for wage month March , 2020, on or before 15.05.2020, duly certifying the disbursement of wage to employees by declaring actual date of disbursement of wages for march 2020....

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42 FAQ’s on UAN And KYC issued by EPFO

Employees’ Provident Fund Organization, India, Ministry of Labour & Employment, Government of India has issued FREQUENTLY ASKED QUESTIONS on UAN AND KYC Dated 13/04/2020.  Q 1. What is Universal Account Number (UAN)? Ans. UAN is 12-digit number provided to each member of EPFO. The UAN acts as an umbrella for the multiple Member...

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Posted Under: Corporate Law |

Format of Certificate/ Declaration Of Employer to Avail ESIC & EPF Relief Scheme Due to COVID 19

The Govt. of India on 26.03.2020 relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) and the Central Govt. proposes to pay 24 % of the monthly wages into EPF accounts for next three months of Wage-earners below Rupees 15,000/- per month, who are employed in establishments having up to one hundred employees, with 90% […]...

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Posted Under: Corporate Law |

ESIC & EPF Relief Scheme guidelines 2020 due to COVID19

Pradhan Mantri Garib Kalyan Yojana : A Scheme to implement the PMGKY package for credit of employee’s & employer’s share of EPF & EPS contributions (24% of wages) for three months by Govt. of India. Overview: The Govt. of India on 26.03.2020 relief package under Pradhan Mantri Garib Kalyan Yojana (PMGKY) and the Central Govt. ...

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Posted Under: Corporate Law |

All about Govt. Relief For EPF & EPS contributions (24% of wages)

A. Press Release The Central Govt. has launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26.03.2020 to help poor fight the battle against Corona Virus The Central Govt. has launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26.03.2020 to help poor fight the battle against Corona Virus. As part of the PMGKY package, [&hell...

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Posted Under: Corporate Law |

EPF Vs. VPF Vs. PPF

Article compares EPF (Employees Provident Fund), VPF (Voluntary Provident Fund) and PPF (Public Provident Fund) with reference to Opening Account for such accounts, Interest Rate, Tax Benefit, Period of Investment, Loan Availability, Employer Contribution on Basic + DA, Employee Contribution on Basic + DA and Taxation on Maturity Returns....

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Posted Under: Corporate Law |

EPFO settles 1.37 Lakh EPF withdrawal claims to fight Covid-19 in less than 10 days

Release ID: 1612849 (10/04/2020)

Employees Provident Fund Organisation (EPFO), an statutory body under Union Ministry of Labour & Employment has processed about 1.37 lakh claims across the country disbursing an amount of Rs. 279.65 crore under a new provision especially formulated by amending the EPF Scheme to help subscribers fight Covid-19....

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FAQs on how to Claim EPF ADVANCE Online

Employee’s Provident Fund (EPF) is a retirement benefits scheme that’s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organization of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO. It’s a savings platform that helps employee...

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Posted Under: Corporate Law |

How to apply online for PF withdrawal due to COVID

The EPFO has released a set of frequently asked questions (FAQs) for the benefit of those who wish to avail the PF advance. Before applying, it’s important to know how much can be withdrawn, will your company be eligible and the amount be taxable? Being an advance, the employee need not have to put the […]...

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Posted Under: Corporate Law |

Provident fund for International Worker

Foreign workers taking up overseas assignments pay more attention to the tax regime of the country when determining costs, and often tend to overlook the social security laws of the country, which are equally important. India requires every business entity employing more than 20 workers to register with the national social security syste...

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Posted Under: Corporate Law |

FAQs On EPF Advance to Fight Covid-19 Pandemic

Q 1. Who is eligible for the advance from EPF to fight COVID-19 Pandemic? Ans: Any member of EPF Scheme, 1952 with UAN (Universal account number) employed in any establishment or factory covered under EPF & MP Act, 1952. Q 2. Under which provision of the EPF Scheme, 1952, a member is entitled for benefit? Ans: That […]...

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Posted Under: Corporate Law |

Change of Date of Birth of EPF/EPS members

No. WSU/37(1)2019/DOB (03/04/2020)

in case of a dispute in the date of birth, any of the following documents may be accepted as valid proof of date of birth: > Birth Certificate issued by the Registrar of Births and Deaths. > Any school/education related certificate. > Certificate based on the service records of the Central/State Government Organisations. > Any other ...

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Advisory on Payment of 24% of wages of workers in their EPF Accounts

No. AP/RO/GNT/LOCK DOWN ECR/2020 (01/04/2020)

(i) The benefit of crediting of 24% of wages to the PF Accounts of workers will only be given to such establishments where 100% KYC is completed, (ii) Where salaries have been paid to the workers by the employers for the lock down period duly filing ECR for the same period and where a declaration is given about number of excluded employee...

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Govt permits 75% non-refundable advance from PF account

G.S.R. 225(E) (27/03/2020)

Government, permit a non-refundable advance from the provident fund account of such member not exceeding the basic wages and dearness allowances of that member for three months or up to seventy-five per cent. of the amount standing to his credit in the Fund, whichever is less....

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Taxability of employer’s contribution towards retirement benefit scheme (Impact of Finance Bill 2020)

As we know that employers use to contribute to the retirement benefit schemes of employees to enable them to maintain a quality life after retirement. Generally these contribution by employer can be in any one or in combination of following three forms: 1. Contribution to PF (Provident Fund) of the employees (Recognised PF, Unrecognised P...

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Posted Under: Corporate Law |

CBT of EPFO recommends PF Interest Rate of 8.50% for 2019-20

he Central Board recommended crediting of 8.5% annual rate of interest on the EPF accumulations in the EPF members’ accounts for the year 2019-20. The Central Board ratified and appreciated restoration of normal pension after 15 years from the date of commutation, benefitting about 6.3 Lakh pensioners who had opted for commutation under...

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Posted Under: Corporate Law |

Employees contribution to EPF & ESIC allowable if paid within relevant due date

PCIT Vs Orchid Pharma Ltd. (Madras High Court)

PCIT Vs Orchid Pharma Ltd. (Madras High Court) Employee’s contribution should be paid within the due date as provided in the related statutes to be allowed as deduction under Section 36(1)(va) of the Act.  A Division Bench of the Kerala High Court in the case of CIT Vs. M/s.Merchem Ltd. [reported in (2015) 378 ITR […]...

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TDS on Pension and Retirement Benefits

1. What is Pension? Pension is described in Section 60 of the CPC and Section 11 of the Pension Act as a periodical allowance or stipend granted on account of past service, particular merits, etc. It involves three essential features. Firstly, pension is a compensation for the past service, secondly, it owes its relationship to a past emp...

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Withdrawal of Provident Fund and Its Taxability – Synopsis

PF withdrawal is taxable if a person has worked in the company for less than 5 years. Tax cannot be saved even by investing in any govt schemes / bonds. It just gets added to income from salaries, and then the taxability will depend upon the Gross Income of the assessee. ...

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Posted Under: Corporate Law |

Guidelines for initiation of Section 7A inquiries under EPF Act

No.C-II/20/76/Misc./2020/CBE/TN/027 (14/02/2020)

Section 7A of Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 provides for quantification of amount due from any employer under any provision of this Act and Schemes framed thereunder. The amount so quantified is recovered in accordance with the procedure prescribed under various provisions of the Act. EPF has issued...

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Employees’ contribution to EPF & ESIC deposited beyond due date not allowable

Pr. CIT Vs Orchid Pharma Ltd. (Madras High Court)

 Employees’ contribution to EPF and ESIC deposited beyond the due date prescribed under section 36(1)(va) would not be eligible for deduction even if deposited before the due date of filing the return of income tax under section 139(1)....

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Wrong Step for Salaried Class- Rs. 7.5 Lakh Limit on PF, NPS & Superannuation fund

It seems that the government is not happy for people earning more and the raise of salary they get after many years of hard-working. If people want to have a very good quality of retirement and improvised lifestyle in retirement is that act of Fraud. We financial advisor advice investor to have financial planning and […]...

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Posted Under: Corporate Law |

Budget 2020: Tax on Employer’s contribution to RPFs, Superannuation Funds & NPS

Budget 2020: Rationalization of tax treatment of employer’s contribution to recognized provident funds (RPFs), superannuation funds and national pension scheme (NPS). Under the existing provisions of the Act, the contribution by the employer to the account of an employee in a recognized provident fund exceeding twelve per cent. of salar...

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Posted Under: Corporate Law |

Contribution By Employer Exceeding Rs.7.5 Lakhs Is Now Taxable

In this Article, we will discuss about change in Section 17 of Income Tax act related to provident and superannuation fund received by  salaried employees . Employer Contribution in all  3 specified fund including interest earned on same amount ,during Previous Financial Year,  will be taxable in hands of employees  if it is exceeding...

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Posted Under: Corporate Law |

Income Tax Exemption in Respect of retirement benefits

Article discusses Tax Treatment of Various retirement benefits i.e Gratuity, Leave Encasement, Commuted Pension, Uncommuted Pension, Statutory Provident Fund, Recognised Provident Fund and Unrecognised Provident Fund. ...

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Posted Under: Corporate Law |

Contractual employees entitled to Employee Provident Fund benefit: SC

Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court)

Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (Supreme Court) Members of the Respondent ­Union have been in continuous employment with the Company for long periods of time. They have been receiving wages/salary directly from the Company without the involvement of any contractor since the date of their engagement. The wo...

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Contribution to Provident Fund- Tax ability- Employer’s View

According to section 36(1)(iv) any sum paid by the assessee as an employer by way of contribution towards a recognized provident fund shall be allowed as a deduction in computing the income referred to in section 28 (income under PGBP)....

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Posted Under: Corporate Law |

TDS on EPF Balance Withdrawal

Provisions related to TDS on withdrawal from Employees Provident Fund Scheme, 1952 under section 192A No TDS on withdrawal from EPF in following cases Transfer of PF from one account to another PF account. Termination of service due to III health of member /discontinuation of Business by employer/completion of project/other cause beyond t...

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Posted Under: Corporate Law |

Govt extends EPF act provisions to establishments of J&K

Notification No. S.O. 3962(E) (31/10/2019)

Central Government hereby extends provisions of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 to apply to the establishments, employing ten or more persons and covered under the provisions of the erstwhile the Jammu and Kashmir Employees’ Provident Funds and Miscellaneous Provisions Act, 1961. MINISTRY OF LABOUR AN...

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EPFO to open offices in Jammu & Kashmir and Ladakh

Office Order No. HRM-VII/1(19)2019/J&k and Ladakh/8366 (25/10/2019)

Competent Authority has approved the opening of Regional Offices of the Employees' Provident Fund Organization (Ministry of Labour & Employment, Government of India) at Jammu & Kashmir and Ladakh with immediate effect....

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Benefit of Contribution in Provident fund Job ke sath bhi job ke Baad bhi

During life time as person has to achieve lot of mile stone i.e His own marriage, marriage of his son and daughter, higher education, Medical exigencies, construction and Purchase of House. Besides these requirement he has also have to save money for his old age requirement when he will become to old and not able […]...

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Posted Under: Corporate Law |

CBT Approves Proposal to Recommend Amendment in EPS 1995

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees' Pension Scheme(EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakh...

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Posted Under: Corporate Law |

All About ESIC and PF with New Rates of ESIC

Applicability of the ESI scheme  The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries’ monthly wage does not exceed Rs 21,000 are covered under the scheme. Whether the employer has employed 10 or more employees, all [&he...

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Posted Under: Corporate Law |

Employee Provident Fund (EPF) Registration

WHAT IS EPF? Employee Provident Fund (EPF) is a scheme regulated by central government under ‘The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952′ which came into effect from 1951 which extends to whole of India except Jammu & Kashmir. EPF is one of the most beneficial investment methods for salaried em...

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Posted Under: Corporate Law |

SC judgement holding allowances as part of basic wages- contradictory?

Is the recent SC judgement holding allowances as part of basic wages for the purpose of determination of PF contribution, in contradiction with the stand of the Law makers and implementeors? In its recent judgement in the case of RPFC vs. Vivekananda Vidyamandir and others & Surya Roshni Ltd & Ors. vs. The State of […]...

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Posted Under: Corporate Law |

 Provision of e-Nomination at Member Interface at Unified EPFO Portal

No NDC/2017/UAN/Pt./3143 (06/06/2019)

A facility for filing of online e-nomination is available at Member Interface of Unified Portal. In order to make this functionality compatible with online Form 10D claim to be filed by members and online composite claim Form 10D/20/5IF to be filed by nominees, some modifications have been incorporated in consultation with the ...

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Disallowance of Contribution of PF, ESIC etc u/s 36(1)(va) – A Comparative Study between Section 36(1)(va) Vs. Section 43-B

Section 36(1)(va) Vs. Section 43-B If the assessee fails to deposit the PF, ESIC etc Contribution before the due dates as per the respective Acts. Effect of Section 43B on unpaid liability towards contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees’ State Insurance Act,...

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Posted Under: Corporate Law |

Maharshtra Minimum Wages/ work hours/PT/MLWF/Holiday-2019

Working Hours for Maharashtra Normal Working Hours Nine hours in a day and forty eight hours in a week Interval For Rest After five hours of work interval of rest of at least half and hour Maximum Over Time Hours One hundred and twenty five hours in a period of three months Spreadover Hours Ten […]...

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Posted Under: Corporate Law |

Need to re-visit Salary Structure

Each & Every Employer will have to be 100% statutory compliant w.r.t. all labour laws including but not limited to The Employees Provident Funds & Miscellaneous Provisions Act 1952, Minimum Wages Act 1948, Bonus Act 1965, Employee State Insurance Act 1948 and all other labour laws. Decisions of recent judgements w.r.t. PF, ESIC, M...

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Posted Under: Corporate Law |

All about EPF Series-1

The EPF was established by the Employees Provident Fund Organization (EPFO) of India, a statutory body of the Government. It states that every organization having 20 or more permanent employees across different departments working, should compulsorily register with the EPFO. In the case of an organization which employs less than 20 employ...

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Posted Under: Corporate Law |

Rectification of Employees Details in EPFO records online and offline

EPFO (Employee’s Provided Fund Organization) is an organization which keeps the contribution made towards PF (Provided Fund) of employees and provides pension after attaining the age of 58 / 50 years (provided service period is 10 years or more). EPFO has made it mandatory to link aadhar number of employees to their EPFO account (very [...

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Posted Under: Corporate Law |

SC decision on PF calculation lowered take home Salary

For employees with monthly pay of less than Rs 15,000, however, inclusion of all allowances in wages for PF calculation would result in a lower take-home salary. For employees with monthly pay of more than Rs15,000, Calculation of PF for Employer Contribution will be restricted to 12% of Rs. 15,000 only. So there will be no impact for su...

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Posted Under: Corporate Law |

Will your pension go up if Supreme Court Decision is implemented in full?

The Supreme Court has on 1st April  2019 has rejected the Special leave petition filed by EFPO against the decision of Kerala High court on quantum of pension payable to an employee after his retirement under employee pension scheme (EPS) 1995. This decision has generated wide spread interest in people working in organised Sector as [&he...

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Posted Under: Corporate Law |

Late Deposit of employee’s contribution for PF/ESI

As per section 36(1)(va) of the Act, if any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employee’s account in the relevant fund or funds on or before the due date. […]...

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Posted Under: Corporate Law |

What is Employee’s Provident Fund (EPF) in India?

The Employee’s Provident Fund (EPF) is a scheme for retirement benefit of employees, which saves a part of their monthly salary as a fund for their future emergencies and retirement. Every salaried employee is eligible for holding an EPF account. The topics discussed in this article are: 1. About EPF 2. Benefits of EPF 3. […]...

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Posted Under: Corporate Law |

How to calculate amount on which PF should be deducted post SC Ruling

In continuation of my last Article ‘Implication of Supreme Court Verdict on Provident Fund‘ published on 2nd March, 2019 on PF calculation after verdict of Hon’ble Supreme Court Judgment, the following illustration will help you to understand that how to calculate salary for PF deduction and extra cost you have to bear as Em...

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Posted Under: Corporate Law |

Govt gives opportunity to employees of Public Sector Insurance Companies to opt for Pension

Government decides to allow one more opportunity to employees of Public Sector Insurance Companies who joined on or before 28th June, 1995 The Government of India has decided to allow one more opportunity to employees of Public Sector Insurance Companies (PSICs) who joined on or before 28th June 1995, to opt for Pension, as a […]...

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Posted Under: Corporate Law |

Implication of Supreme Court Verdict on Provident Fund

Regional Provident Fund Vs Vivekananda Vidyamandir And Others  (Supreme Court of India)

Supreme Court's (SC) ruling on Provident Fund on Thursday (28 February, 2019) states that employers can't segregate special allowances from basic salary. It has to be included for PF deductions under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, said a bench of Justices Arun Mishra and Naveen Sinha....

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Analysis & Key Takeaways from Apex Court ruling on EPF Contribution on Special & Other Allowances

I am sharing with you all an analysis and key takeaways of landmark ruling of the Apex Court in the case of Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir and Others dated 28th February, 2019. By virtue of this ruling “Contribution towards Employees Provident Fund (‘EPF’) is required to be computed ...

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Posted Under: Corporate Law |

PF is applicable on Basic salary plus all allowances except HRA: SC

Regional Provident Fund Commissioner (II) West Bengal Vs Vivekananda Vidyamandir and Others (Supreme Court)

Regional Provident Fund Commissioner Vs. Vivekananda Vidyamandir and Others (Supreme Court) Basic wage, would not ipso­facto take within its ambit the salary breakup structure to hold it liable for provident fund deductions when it was paid as special incentive or production bonus given to more meritorious workmen who put in extra output...

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EPFO Facilitating Aadhaar number seeding in UAN

Notification No. C-III/1/2018/Cir/KYC (29/11/2018)

UIDAI has clarified that EPFO may continue to avail Aadhaar based authentication services for the schemes for which notification under Section 7 of the Aadhaar Act, 2016 has been issued and duly published in the Official Gazette....

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Non Submission of Online monthly IW1 return- Reg.

File No. IWU/7(30)2012/Return in R/O IWU/1191 (28/11/2018)

As you may be aware that facility for online submission of IW-1 return by employers has started from 1st November 2018. It is observed that such returns are not being submitted online by concerned employers of establishments employing International Workers...

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Withdrawal rules for your provident fund account

Provident Fund is a product which helps salaried people to accumulate funds while they are earning for the period the income flow stops. So generally it is not supposed to be withdrawn before its maturity and jeopardise one’s retirement. However there are circumstances when resorting to the money accumulated in the provident fund accoun...

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Posted Under: Corporate Law |

Submission of Form-11 & seeding KYC in UAN Portal- Reg

Notification No: LC-4(115)2018/Aadhar/LO/13478 (18/10/2018)

In view of the Hon’ble Supreme Court order on the Aadhar Act, 2016, dated 26.09.2018, it is advised to avoid any coercive action by way of prosecution till further orders....

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Labour Laws – Compliance Checklist and Calendar

Labour Laws – Compliance Checklist and Calendar under THE FACTORIES ACT, 1948, MINIMUM WAGES ACT 1940, PAYMENT OF WAGES ACT, 1936 and other Labour Laws...

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Posted Under: Corporate Law |

Tribunal cannot condone Delay in Filing Appeal of more than 120 days under EPF & MP Act

No,LC-7(94)2018/PB/CGIT/imp judgment/8820 (08/10/2018)

Tribunal does not have powers to condone the delay beyond the period of 120 days as mentioned in Rule 7(2) of the Rules. As sequel of above discussion, it is held that appeal filed by the appellant herein is hopelessly time barred as such the delay in filing the appeal is uncondonable in view of the embargo contained in Rule 7(2) of the R...

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Refund of Double Payment by Electronic Challan cum Return (ECR) -Reg

No. Bkg.1 (34) 2017/Bank Commn./UBI/157 (05/10/2018)

In spite of guidelines issued in above matter, a number of complaints are being received in Head Office in connection of non refund of wrong / excess / double payments made by establishment through ECR....

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Rate of Interest on Various Provident Fund Schemes WEF 01.10.2018

F.NO. 5(1)-B(PD)/2018 (04/10/2018)

It is announced for general information that during the year 2018-2019, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight percent) w.e.f. 1st October, 2018 to 31st December, 2018. ...

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EPF: Settlement of Death case claims with 7 Days

No. CSD/AG/2017/8352 (27/09/2018)

This is bring to your notice on circular no. CSD-1/CPGRAMS/Pragati e-Samiksha/2016/12866 dated 31-10-2016 wherein given direction that all death case claims submitted by spouse/'nominee/legal heir of EFF member be invariably settled within a period of 7 days from dale of submission of claim form in concerned field office where the decease...

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All about Employees Provident Fund Act, 1952

Employees Provident Fund is established in 1952 and hence the act is named as Employees Provident Fund & Miscellaneous Provisions Act, 1952, which extend to the whole of India except Jammu & Kashmir. Employee Provident Fund (EPF) Provident fund is a welfare scheme for the benefits of the employees. Under this scheme both the emplo...

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Posted Under: Corporate Law |

Generation of UAN without Aadhaar for residents of Assam, Meghalaya & Nagaland

No. NDC/10(5)/2017/3249 (29/08/2018)

Hence, a provision has been made available in the Unified Portal in the Establishment login for generation of UAN without Aadhaar for employees resident in Assam, Meghalaya and Nagaland states. It is being allowed initially for a period of 3 months from 24/08/20 18 to 23/11/2018. EMPLOYEES’ PROVIDENT FUND ORGANISAT ION MINISTRY OF LABOU...

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Present Rate of Contribution to EPF, EPS and EDLI with notes

PRESENT RATES OF CONTRIBUTION TO CONTRIBUTION AND ADMINISTRATION ACCOUNTS OF  EPF, EPS AND EDLI BY CONTRIBUTION ACCOUNTS ADMINISTRATION ACCOUNTS EPF EPS EDLI EPF@@ EDLI @@ EMPLOYEE 12% /10% ## 0 0 0 0 EMPLOYER Difference of EE share and Pension Contribution 8.33% ## 0.5% ## 0.50%  !! [w.e.f. 01-06-2018] 0 [w.e.f. 01-04-2017] 10% rate is...

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Posted Under: Corporate Law |

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