Can Some body Please tell me Rate of PF Deduction.It should be deducted on only Basic or Basic + DA
Menu
Pf deduction
Replies (2)
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
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
Recent Topics :
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
Related Topics :
CAclubindia
