Can Some body Please tell me Rate of PF Deduction.It should be deducted on only Basic or Basic + DA
Nitin Khurana (Articled trainee) (202 Points)
10 June 2013Can Some body Please tell me Rate of PF Deduction.It should be deducted on only Basic or Basic + DA
praveen kumar devarapalli
(Managing Director)
(361 Points)
Replied 10 June 2013
PF has to be ducted on Basic+DA
Formula is if basic + DA is less than 6500 pf shall be 12% on Basic + DA
If Basic + DA is morethan 6500 no need to duct PF or 780 or as per companies policy
ANU BANSAL
("Love urself the most.........")
(2482 Points)
Replied 27 June 2013
Dear Nitin ,
Rate of PF is at present 12% and the computation is usually on basic salary +DA
1. When the Basic Salary + DA does not exceed Rs.6500 then in such case it is mandatory on part of the
employer/org. to deduct PF and deposit it every month.
2. In case the Basic Salary + DA exceeds Rs.6500 then in such case:
the employee has option to get his PF deducted from his salary. It means then its not mandatory.
Option to get PF deducted once exercised cannot be revoked till the employee is in employment.
Regards,
CA Anu Bansal
CAclubindia
