Friends, PFA news alert issued by PWC on the subject. Thanks
From India, Malappuram
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1446From India, Malappuram
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Copy of government notification dated 10.2.2016 in this regard is attached. Thanks
From India, Malappuram
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From India, Malappuram
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Amendment on PF Withdrawal and Interest Accrual
As per the amendment, the employee cannot withdraw the employer's share and the interest accrued on it until reaching the retirement age. The interest is cumulatively paid on the average monthly balance. Since there will be no addition to the PF balance, the existing balance will receive interest as per the applicable interest rate for the period.
The Excel file attached can be used for the calculation. For illustrative purposes, consider an employee who was separated in 2016 and is not covered under PF later on. The employee is currently 40 years old, with a birth month of August. They will reach the age of 58 in August 2033. The current balance of the employer's share is Rs. 1,00,000, and the employee can withdraw an amount of Rs. 4,37,918. The interest rate remains unchanged during this period. If the interest rate changes within this period, it can be updated against the year.
From India, Mumbai
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As per the amendment, the employee cannot withdraw the employer's share and the interest accrued on it until reaching the retirement age. The interest is cumulatively paid on the average monthly balance. Since there will be no addition to the PF balance, the existing balance will receive interest as per the applicable interest rate for the period.
The Excel file attached can be used for the calculation. For illustrative purposes, consider an employee who was separated in 2016 and is not covered under PF later on. The employee is currently 40 years old, with a birth month of August. They will reach the age of 58 in August 2033. The current balance of the employer's share is Rs. 1,00,000, and the employee can withdraw an amount of Rs. 4,37,918. The interest rate remains unchanged during this period. If the interest rate changes within this period, it can be updated against the year.
From India, Mumbai
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF INTEREST CALCULATION SHEET.xls