Hi All,
this is my first post.
I have two queries
1. my basic salary is around 27000 per month. can i choose not to contribute to the PF. if i can do that and i contribute nothing what happens to the employer's contribution. is it sent to PF or is it paid out as part of monthly compensation? also is this under company's discretion about what the PF contribution I will make??
2.the pf and gratuity deduction....are they tax exempt at at deduction or point of investing i.e. while calculating tax is it calculated after all deductions have been made?
regards,
Abhishek
From India, New Delhi
this is my first post.
I have two queries
1. my basic salary is around 27000 per month. can i choose not to contribute to the PF. if i can do that and i contribute nothing what happens to the employer's contribution. is it sent to PF or is it paid out as part of monthly compensation? also is this under company's discretion about what the PF contribution I will make??
2.the pf and gratuity deduction....are they tax exempt at at deduction or point of investing i.e. while calculating tax is it calculated after all deductions have been made?
regards,
Abhishek
From India, New Delhi
Hi..
Please find the answer for your queries.
1. 12% of basic is deducted as PF contribution and the same is being contributed by company too. you cannot choose not to contribute as its a mandate from labour law. VPF is something you can decide to contribute more for your savings. PF amount gets accumulated in your PF account.
2. PF deduction will be used for Tax exemption. Gratuity deduction wil not happen from employee end, its only employer contribution.
Hope that clarifies.. feel free to revert for any other queiries.
From India, Chennai
21Please find the answer for your queries.
1. 12% of basic is deducted as PF contribution and the same is being contributed by company too. you cannot choose not to contribute as its a mandate from labour law. VPF is something you can decide to contribute more for your savings. PF amount gets accumulated in your PF account.
2. PF deduction will be used for Tax exemption. Gratuity deduction wil not happen from employee end, its only employer contribution.
Hope that clarifies.. feel free to revert for any other queiries.
From India, Chennai
Dear Abhishek,
First, PF is calculated on basic salary. If your Basic salary is more than Rs. 6500/-, you can choose not to pay for PF.
But if you have already done it you have to continue.
For any further clarification feel free to write or discuss.
From India, Mumbai
First, PF is calculated on basic salary. If your Basic salary is more than Rs. 6500/-, you can choose not to pay for PF.
But if you have already done it you have to continue.
For any further clarification feel free to write or discuss.
From India, Mumbai
Hello Everyone, With relevance to the discussions above i want to learn if a person is appointed on apprenticeship what are the clauses of PF
From India, Rajkot
From India, Rajkot
Hi
Basic above 6500- you can choose not to pay PF. You can fill up form 11 and handover to employer.
But 27,000 is your gross salary or basic salary. If it is gross, then check with you basic salary amount in the pay slip for bifurcation. If it is above 6500/- u can choose to exempt your self
Regards
Jaya
From India, Bangalore
Basic above 6500- you can choose not to pay PF. You can fill up form 11 and handover to employer.
But 27,000 is your gross salary or basic salary. If it is gross, then check with you basic salary amount in the pay slip for bifurcation. If it is above 6500/- u can choose to exempt your self
Regards
Jaya
From India, Bangalore
Dear Abhishek,
Now a days all the pvt companies will give you CTC figure. The employee and employer contribution are deducted from the CTC figure. I have heard that from the very frist job an employee can say no to PF contributon. There is a form available with the PF dept for your unwillingness to go with the PF deduction. But you will loose this option once opted for PF contribution.
PF deduction is eligible for TAX exemption. Gratuity will be paid to employee after a contineous employment for a period of 5yrs and 10 days. This amount is not taxable.
From India, Bangalore
Now a days all the pvt companies will give you CTC figure. The employee and employer contribution are deducted from the CTC figure. I have heard that from the very frist job an employee can say no to PF contributon. There is a form available with the PF dept for your unwillingness to go with the PF deduction. But you will loose this option once opted for PF contribution.
PF deduction is eligible for TAX exemption. Gratuity will be paid to employee after a contineous employment for a period of 5yrs and 10 days. This amount is not taxable.
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf