Dear All,
Please find the attached notification for the Senior Citizen Welfare Fund Rule 2016 and Finance Act 2015. According to this notification, the following are observations:
1) It is applicable to all exempted trusts.
2) Members of PF trust who have become inoperative, meaning members who have left due to reasons such as going abroad, death, or retirement after 55 years with no interest credited into their account. For such cases, what is to be considered from the following options - clarity is needed in these options:
Option A - If completed 10 years from the date of leaving and no claims have been preferred. For example, if an employee's date of leaving is 31-12-2013 and becomes inoperative from 31-12-2016 without making a claim until 31-12-2016.
Or
Option B - If completed 7 years from the year (last date of the financial year) in which it becomes inoperative and no claims have been preferred. For example, if an employee has a date of leaving 31-12-2013, becomes inoperative on 31-12-2016, transferred to an inoperative account on 31-3-2017, and does not claim until 31-3-2024.
By choosing options, we have to exercise the below points:
3) The amount lying in such accounts will be either transferred to EPFO Senior Citizen Welfare Fund or the trust has to create a Senior Citizen Welfare Fund and account for the same.
Please guide.
Sahdev
From India, Rajkot
6Please find the attached notification for the Senior Citizen Welfare Fund Rule 2016 and Finance Act 2015. According to this notification, the following are observations:
1) It is applicable to all exempted trusts.
2) Members of PF trust who have become inoperative, meaning members who have left due to reasons such as going abroad, death, or retirement after 55 years with no interest credited into their account. For such cases, what is to be considered from the following options - clarity is needed in these options:
Option A - If completed 10 years from the date of leaving and no claims have been preferred. For example, if an employee's date of leaving is 31-12-2013 and becomes inoperative from 31-12-2016 without making a claim until 31-12-2016.
Or
Option B - If completed 7 years from the year (last date of the financial year) in which it becomes inoperative and no claims have been preferred. For example, if an employee has a date of leaving 31-12-2013, becomes inoperative on 31-12-2016, transferred to an inoperative account on 31-3-2017, and does not claim until 31-3-2024.
By choosing options, we have to exercise the below points:
3) The amount lying in such accounts will be either transferred to EPFO Senior Citizen Welfare Fund or the trust has to create a Senior Citizen Welfare Fund and account for the same.
Please guide.
Sahdev
From India, Rajkot
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