Guide me plz

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Student
120 Points Joined March 2007

 

I have offered CTC Rs.2 Lakhs with a Basic of Rs.8, 000/-
 
Our HR person has informed me that my Basic exceeds Rs.6, 500/- hence, PF deduction is not compulsory.
If I haven’t opted PF deduction then I can take home my salary without any deduction. 
If I have opted PF deduction, then the company’s share also will be deducted from my salary (that is CTC).
If I choose PF what benefit can I enjoy? 
If not what am I loosing?
 
Guide me plz.
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On 19 July 2008 at 15:26 Report
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Practising Chartered Accountant
931 Points Joined April 2008

ask a query once

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On 19 July 2008 at 16:27
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Practising Chartered Accountant
931 Points Joined April 2008

answered

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On 19 July 2008 at 16:28
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service
462 Points Joined February 2008

AS per PF rules, if your basic pay, DA, retaining allowance if any and cash subsidy of food if any do not exceed Rs 6500 then PF deduction on the part of employer is not compulsory. However, if employer and employee opt jointly, the deduction can be made. Employer's liability arises if there is a deduction from employees' account.

PF deduction is alaways advantagious from employee's point of view because employer is bound to deposit equal amount. Hence after the retirement the whole corpus goes to employee. 

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On 24 July 2008 at 15:39
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Auditor
46 Points Joined June 2008

I suggest to go for PF deduction. It will helpfull to you.

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On 29 July 2008 at 20:51
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Chartered Accountant - Manager Finance
2375 Points Joined September 2007

i think the query is already answered!!

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On 30 July 2008 at 11:38


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