Our company employees retirement
age is 58 years.
One employee will retired on 31st Oct.2023.
Our company wish to continued him up to 60 years ( 2 years extension in service )
Can we continued as a regular employee & deduct PF from his salary as under.
12% employee contribution in PF + 8.33% employer contribution in pension fund + 3.67% employer contribution in PF
If yes it is Ok.& if No, we decided another Option.
Appointed on contract basis & deduct 1% TDS.
Pl.guide above for points
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Provident fund deduction, on extended service.
Replies (8)
No you cannot as per hr details.
Keep deducting PF as long as the employee is the member of EPFO.
As he’s completed 58 years of age, you cannot contribute to the pension fund. Complete 24% (12%+12%) will go into the PF account.
Regarding pension, apply for monthly pension or you can defer it up to 60 years of age with increments.
Ok sir , what is 2nd option - If appointed as contract employee ,can we deduct 1% TDS on contractual employee salary / remuneration
If he’s employee (contractual or whatever), PF will be deducted and tax will be deducted u/s 192.
What's the term employment from 58 to 60
If employee taken as professional service & deduct tds 10% , without pf , it is sufficient
| Originally posted by : Rajkumar Gutti | ||
 |
If employee taken as professional service & deduct tds 10% , without pf , it is sufficient |  |
Yes, you can enter into a contract for service. PF will not be applicable.
For TDS, deduct 10% if it is professional service as per section 194J, else 1% u/s 194C.
Ok Thanks , धन्यवाद
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