X Ltd. provide salary under broad three heads a) Basic Salary b) HRA and c) Special Allowance.
Question is Whether PF is liable to be deducted on the Special Allowance.
a) If answer is yes, why it is deductible.
b) Do we have any case law in the subject matter to support the case.
I am looking forward purely from the Legal Perspective as per defination in the PF Act.
Vineet Agarwal
From India, New Delhi
1Question is Whether PF is liable to be deducted on the Special Allowance.
a) If answer is yes, why it is deductible.
b) Do we have any case law in the subject matter to support the case.
I am looking forward purely from the Legal Perspective as per defination in the PF Act.
Vineet Agarwal
From India, New Delhi
dear vineet
PF authorities object on special allowance because this allowance is not clear what is special allowance.if u have put cleraly like conveyance allowance or medical allowance ,than they would have not objected .for special allowance they ask for PF contribution.
tks
j s malik
From India, Delhi
PF authorities object on special allowance because this allowance is not clear what is special allowance.if u have put cleraly like conveyance allowance or medical allowance ,than they would have not objected .for special allowance they ask for PF contribution.
tks
j s malik
From India, Delhi
I beg to differ from the views expressed. I am exploring purely from the Legal i.e. Judgements of the Court as well as defination of the Basic Wages as defined in the EPF Act.
1. We have to understand the defination of 2-b of the EPF act as well as judgements pronounced by the Hon'ble Supreme Court of India in the case of Manipal Acadmey Vs. PF Commioner, Bridge and Rood Co. Case, and other leading judgements in the case.
If you see the defination of Basic wages is provide means all emoluments ....... but does not included certain items as stipulated in clauses i) ii) and iii).
The actual bone of contention is Clause ii).
PF is to be deductible on specail allowance as it fall in the ambit of the 2b of EPF Act.
From India, New Delhi
1. We have to understand the defination of 2-b of the EPF act as well as judgements pronounced by the Hon'ble Supreme Court of India in the case of Manipal Acadmey Vs. PF Commioner, Bridge and Rood Co. Case, and other leading judgements in the case.
If you see the defination of Basic wages is provide means all emoluments ....... but does not included certain items as stipulated in clauses i) ii) and iii).
The actual bone of contention is Clause ii).
PF is to be deductible on specail allowance as it fall in the ambit of the 2b of EPF Act.
From India, New Delhi
Spl allowance is wages for the purpose of PF, but subject to total amount of Rs.6500/- and if you are getting basic+da and spl allowance more than 6500/-, the additional amount more than 6500/=the employer is not bound to deduct pf contribution
ak malhotra
Sr General Manager
Dharampal Satya Pal Limited
From India, Guwahati
ak malhotra
Sr General Manager
Dharampal Satya Pal Limited
From India, Guwahati
Mr. Malhotra, I agree with your words. The actual question lies if X Ltd is deducting PF on the complete basic amount irrespective of the limitation of Rs. 6500/- for PF deduction.
What are ways out so that the emoluments not come under the ambit of defination of wages as defination stipulated in section 2b of the PF Act.
Your kind views are higly appreciated.
vineet agarwal
From India, New Delhi
What are ways out so that the emoluments not come under the ambit of defination of wages as defination stipulated in section 2b of the PF Act.
Your kind views are higly appreciated.
vineet agarwal
From India, New Delhi
i want eject meaning, if basic+da+spl allowance is equal than 6500 then employer need to deduct on spl. allowance
From India, Hyderabad
From India, Hyderabad
i want eject meaning, if basic+da+spl allowance is equal than 6500 then employer need to deduct epf on spl. allowance
From India, Hyderabad
From India, Hyderabad
SPECIAL ALLOWANCE has time and often been disputed throghout various cases in different nooks and corners. Act does not provide for remittances / deduction on the Special Allowance., It is only a tool of the Enforcement Machinery to superimpose the provisions based on their 'personal" understandings.
I also agree with Vineets' findings parallelly . For eg any estt. could pay basic salary 1000/- and special allowance: 4000/- such types of matters create a conflict. however, deserving cases have to be treated in confirmity with the Principal Act of 1952 and not in the light of findings of single judge high court judgements.
Anyway, each legal matter has a different perspective and merits
this is only what i can say upon such a short recital of case
thanks and regards
prasiddh 9765664475
From India, Pune
I also agree with Vineets' findings parallelly . For eg any estt. could pay basic salary 1000/- and special allowance: 4000/- such types of matters create a conflict. however, deserving cases have to be treated in confirmity with the Principal Act of 1952 and not in the light of findings of single judge high court judgements.
Anyway, each legal matter has a different perspective and merits
this is only what i can say upon such a short recital of case
thanks and regards
prasiddh 9765664475
From India, Pune
It is advisable to bifurcate the PF amount from Special Allowance, as this helps the employee in Tax Saving, as PF does not count to Tax. So its good to deduct PF from Special Allowance.
From India, Delhi
From India, Delhi
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