Epf entry date & nature of epf for income tax purposes.

This query is : Resolved

Radhey Shyam Agrawal (Querist)
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15 October 2016 My client is an employee in BSNL, he has undergone training w.e.f. 24.08.2015 to 06.11.2015 and deduction of EPF is also made from the stipend of the said period. He joined for regular duty w.e.f. 07.11.2015 but he has been paid stipend from 24.08.2015 to 06.11.2015 and salary from 07.11.2015 to 31.12.2015 in one go and therefore his date of joining EPF is shown in EPF monthly Return of Dec 2015 as 01.12.2015. Deduction was there from stipend and salary of his own cont. as well as employer's cont.

Data summarized as folows:
Training Period: 24.08.2015 to 06.11.2015
Regular posting date: 07.11.2015
Stipend and Salary paid: In month of Dec 2015
Date of Joining EPF: 01.12.2015 (as shown in EPF Return of Dec 2015 filed in Jan 2016)

Queries:
1. Should this date of joining is correct or it should be amended as 24.08.2015??
2. What type of fund is EPF for a PSU employee (i.e. BSNL)----
i) Recognized PF
ii) Statutory PF
iii) Unrecognized PF

Thanks & Regards
Radhey Shyam Agrawal

Radhey Shyam Agrawal

Radhey Shyam Agrawal (Querist)
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26 October 2016 Is there no expert to resolve the query.....

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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21 July 2024 Based on the information provided, let's address your queries regarding EPF (Employees' Provident Fund) for your client who is an employee of BSNL:

1. **Date of Joining EPF:**
- The EPF date of joining should ideally be the actual date when your client started contributing to EPF. In this case, your client started deductions from the stipend during the training period, which began on 24.08.2015. Therefore, the correct date of joining EPF should be 24.08.2015, not 01.12.2015. This date reflects when EPF deductions began from the stipend received during training.

2. **Nature of EPF for a PSU employee (BSNL):**
- For a PSU employee like BSNL, EPF typically falls under the category of **Recognized Provident Fund (RPF)**. Here’s a brief explanation of the categories:
- **Recognized Provident Fund (RPF):** This is a fund recognized by the Commissioner of Income Tax under the Provident Fund Act. Contributions to RPF enjoy tax benefits under Section 80C of the Income Tax Act. The EPF maintained by BSNL would likely fall under this category.
- **Statutory Provident Fund (SPF):** This is a fund set up under a statute by the government or a local authority for its employees.
- **Unrecognized Provident Fund (UPF):** This refers to any provident fund that does not satisfy the conditions laid down for recognition under the Income Tax Act.

Since EPF contributions are made by BSNL, a PSU, and assuming it is recognized by the Income Tax authorities, it would be categorized as a **Recognized Provident Fund (RPF)**.

### Conclusion:
- **Date of Joining EPF:** Amend the EPF date of joining to 24.08.2015 to accurately reflect when EPF deductions commenced from the stipend during training.
- **Nature of EPF:** EPF for PSU employees like those in BSNL typically falls under Recognized Provident Fund (RPF).

Ensure the EPF contributions and the correct date of joining are updated accordingly in the records to avoid any discrepancies or issues in the future.

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