What is the treatment of employees provident fund?
Tax Treatment of Provident Fund
| Particulars | Recognised PF | Unrecognised PF |
|---|---|---|
| Employer’s Contribution | Contribution to 12% of salary is exempt, above that is added to salary income of the employee. | Not taxable |
| Employee’s Contribution | Section 80C Deduction | No Section 80C deduction |
How can I withdraw my PF step by step?
Step 1: Log into the UAN Member e-Sewa portal. Step 2: Select ‘Online Services’ tab and click on ‘Claim (Form-31, 19 & 10C)’ option. Step 3: Member details will be displayed. Enter your bank account number registered with EPF and click ‘Verify’.
What is eligibility of PF?
EPF eligibility criteria If you are a salaried employee with a Basic + Dearness Allowance less than Rs. 15,000 per month, it is mandatory for you to be opened an EPF account by your employer.
Is PF compulsory for all companies?
Not every company is liable to pay PF contribution. Now, it is not compulsory forevery employee to pay Provident Fund. Employees having basic salary more than 15,000 have an option to opt out of PF at the time of joining the company. Its not compulsory but there are some set of rules that need to be followed.
Can I withdraw employer share PF?
The employer’s portion can be withdrawn after attaining the retirement age (58 years). Existing rule : You can withdraw up to 90% of your entire PF balance (employee share + employer share) on attaining 54 years of age or within one year before actual retirement, whichever is later.
On which part of salary PF is deducted?
Employee’s contribution towards EPF – 12% of the employee’s salary is deducted by the employer on a monthly basis for contribution towards EPF. The entire contribution goes towards the EPF account. Employer’s contribution towards EPF – The employer also contributes 12% of the employee’s salary towards EPF.