PROVIDENT FUND
PRIYA PRASHAR (.) (60 Points)
14 May 2020
Is there any benefit of provident fund to employers?
PRIYA PRASHAR (.) (60 Points)
14 May 2020
Nishant
(Assistant)
(1094 Points)
Replied 14 May 2020
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 18 May 2020
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
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 20 May 2020
Hi
See the latest notifications in this regard.
It is effective for wage months May, June and July
Regards
Puran Dangwal
Puran Singh Dangwal
(Executive Finance & Accounts)
(101 Points)
Replied 20 May 2020
One more from Gazette of India.
Regards
Puran Dangwal
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