PROVIDENT FUND

Dear

If the query about FM announcement of reduction in the rate of PF Contribution from 12% to 10%, then

If the employee is hired on CTS basis i.e. employer share of PF is a part the CTC, then employer has to pay the differential 2% back to employee as special allowance etc. No benefit to employer.  That 2%, earlier taxfree, now becomes taxable in this way.

if employer share of PF is out of the CTC, then it is a benefit to employer.

Regards

Puran Dangwal 

Hi 

See the  latest notifications in this regard. 

It is effective for wage months May, June and July

Regards

Puran Dangwal

One more from Gazette of India.

Regards

Puran Dangwal