Calculation of P.F

Can anyone explain the calculation of P.F and the consequences of a default / Late payment of P.F

Replies (2)

The bifurcation of employer's share is as follows:

8.33% of salary= Employee Pension Fund(However the amount of salary for pension cannot exceed Rs 6500) ie. if an employee's salary is more than 6500 than the max. amount of pension will be Rs 541(6500*8.33%) but if the salary is less than 6500 the amount of pension will be salary*8.33%

3.67% of salary= PF. But if the amount of salary is more than 6500 PF will be calculated as follows:

Step 1:Employers share=salary*12%

Step 2:Pension=6500*8.33%=541 Rs

Step 3:PF= Step1-Step2

The due monthly due date of payment of PF is 15th of next month & annual return is to be submitted on 30th April every year. The Govt. is very stringent in case of late/default payment of PF. In case it is not paid on 15th the contribution of employer will be considered as income and will be taxed.

Also refer the attachment for your clarification.

 

The bifurcation of employer's share is as follows:

8.33% of salary= Employee Pension Fund(However the amount of salary for pension cannot exceed Rs 6500) ie. if an employee's salary is more than 6500 than the max. amount of pension will be Rs 541(6500*8.33%) but if the salary is less than 6500 the amount of pension will be salary*8.33%

3.67% of salary= PF. But if the amount of salary is more than 6500 PF will be calculated as follows:

Step 1:Employers share=salary*12%

Step 2:Pension=6500*8.33%=541 Rs

Step 3:PF= Step1-Step2

The due monthly due date of payment of PF is 15th of next month & annual return is to be submitted on 30th April every year. The Govt. is very stringent in case of late/default payment of PF. In case it is not paid on 15th the contribution of employer will be considered as income and will be taxed.

Also refer the attachment for your clarification.

 

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