Introduction
In this article I will be writing about the Provident Fund(PF) or Employee Provident Fund(EPF). It is one of the important component under section 80c. This deduction is done by your employer, so it becomes the compulsory savings for every salaried person. There is few important facts which needs to get the focus. I will write it in this article. If you have any doubts, please post it in the comments section. Subscribe to free email updates.
Employee Provident Fund(EPF)
- Saving on Provident Fund(PF) earns 8.5% interest rates on monthly cumulative basis.
- It is compulsory that 12% of basic salary will be deducted as the PF.
- With your interest, you can increase the PF contribution up to 25% of basic salary.
- Interest income on Provident Fund(PF) is not taxable.
- If you are with drawing the money before five years, the amount is taxable.
- You can close the PF account only when you retire or leaving the company.
- The main advantage of PF is it adds lump sum amount for your retirement apart from any other savings.
- Up to Rs.100000 can be shown as the tax exemption.
Summary
I hope this article would have been very useful for you to know about the Provident Fund(PF). If you have any doubts, please post it in the comments section.
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February 3, 2010 at 4:17 am
Can we close the PF account when we leave the company? I doubt, I guess EPF rule is like this, if you leave and company and didn’t take any other job for 2 months then you can close and get the money. Otherwise, you can only request for transfer of account. Please, correct if I am wrong.
February 3, 2010 at 4:22 am
Hello Sath,
As per the rule you can close only when you retire or leaving India to take the job abroad or not working.
But, you can withdraw money after two months of leaving the company.
Thanks,
Krishna
February 3, 2010 at 11:48 pm
How to know how much fund in my PF a/c, we have option to check online?
February 3, 2010 at 11:51 pm
could you kindly give me the reference where the maximum contribution limit of 25% of basic has been prescribed towards employees provident fund?
Thanks.
s.gopalakrishnan
February 3, 2010 at 11:53 pm
What will happen when you leave a company?? The company relieving you will settle your PF amount when you go out.. Will it be taxable?? or do i need to reinvest the same in the company where i am moving to to get the tax exemption?? Pls clarify
February 4, 2010 at 8:19 pm
Krishna,
As you mentioned, you can increase the contribution upto 25%. As far as i know the contribution is fixed 12% from the employee and 12% from the employer. Other than VPF(virftual provident fund) we can’t increase EPF contribution.
Can you please verfity the 25% contribution and let us know. If so let me know the procedure how can i increase.
thanks
Hari
February 5, 2010 at 3:15 am
Hello Hari,
You can increase the PF contribution upto 100% of basic + DA..
Thanks,
Krishna
May 8, 2012 at 11:29 pm
I have a specific quiry. I am working as consultant/ advisor and the salary being on the basis of normal employee with 30% tax etc. Pf facility is there like any normal emplyee. I am now 62+ when I joined 3.5 years back ie I was 59. I have still contract period of 5 months left. I want to withdraw my PF ie 3 years and 6 months since joining,, as I need the money urgently. Is it taxable. I am not going to take any empolyment any more any way.. and as such I am in advisor capacity on full time. Pls clarify. Thanks rgds.
February 8, 2010 at 9:01 am
Krishna,
I searched in internet to find out the maximum employee contribution in EPF. But every where i found it is 12% of basic. And it should not exceed 6500/-. Here is the EPFlink,
http://www.epfindia.com/payments.htm
Correct me if i am wrong.
Hari
February 8, 2010 at 9:15 pm
Hello Hari,
Yes. It shows it should not exceed Rs.6500.
Thanks,
Krishna
February 9, 2010 at 1:15 am
I HAVE NOT RECEIVED ANY REPLY TILL TODAY (i.e) 09-02-2010
February 11, 2010 at 4:42 am
Hello,
I am presently working abroad. I left india last year. My EPF account in india still there. Is it true that without india job, i.e. no monthly epf contribution , no anymre interest will be paid on whatever amount in EPF account. Is it better to withdraw all amount from account or still 8.5% interest is paid.
Please clear me these issues.
Thanks
Dhaval shah
February 20, 2010 at 10:42 pm
i want know about my pf account ,pl give me the website of this issue
February 21, 2010 at 12:35 am
Hello,
I am presently working abroad. I left india last year. My EPF account in india still there. Is it true that without india job, i.e. no monthly epf contribution , no anymre interest will be paid on whatever amount in EPF account. Is it better to withdraw all amount from account or still 8.5% interest is paid.
Please clear me these issues.
Thanks
Dhaval shah
February 22, 2010 at 1:44 am
Pls give me the rule and regulation of PF & EPF.
April 24, 2010 at 9:09 pm
Hello Everyone,
Actually i have an offer in hand from a small company about 100 employees world-wide. It is offering me a flat amount say 45000, thats it including TDS. Since its the fiirst time i am switing i am not aware of various salary structures/formats which organisations especially small organizations are offering. Please find below the points which they have told me followed with my queries.:
1. Whole amount is Baisc i.e 45,000 – Can it be possible for a company to show whole amount as basic of an employee to the govt. Is this statement is OK.
2. HRA will be 10% of basic i.e 45,000 – shouldn’t it be 40% or 50% of basic as what i have read in budget list. Is this statement is OK.
3. No PF component – so what to do should i close the PF account (in this case will this amt be taxable as its only 3.5 year since this PF account is opened) or i have another options. Is there any better option other than closing PF account in order to get benefit of it.
Thanks ,
Praveen
May 13, 2010 at 11:24 pm
How can i know that the amt of PF in my A/C
Having online side so please tell me sir
June 6, 2010 at 9:56 pm
Hi,
I’m working with a Pvt company in Bangalore for last 6years, and I have nearly 4 lacs in my PF account. Is it possible for me to withdraw the complete PF amount as of now (without closing the account) for making use of one of my urgent personal use ? If yes, can I get it done through my company ?
Thanks & Regards
Praveen
June 28, 2010 at 7:47 pm
Very useful guide for every salaried persons.
September 8, 2010 at 7:32 am
I want to know how much provident fund a company should contribute for a senior citizen. Is it full amount that the employee is contributing or 50% of that amount.Pls reply.
September 16, 2010 at 9:23 pm
I want to know how can we increase our PF deducton amount.
October 20, 2010 at 10:50 pm
i have worked for a company for last 3 years ….what should i do with my pf amount i.e if i withdraw before 5 yrs will the interest be taxable or it is there any other way that i withdraw after 5 years …..can i check my pf balance online………….
October 26, 2010 at 5:11 am
Hi
I applied for withdrawl of pf a/c no–mh\ban\46320\13633 and it shows on the epfo bandrawebsite that worksheet is prepared for form mo 19 but it shows the same update still–i want to know what does it mean and how much time will it take for the money to come in my a/c–it is already 5-6 months now and the people are so pathetic in epfo office i have tried to call on 10 diffrent numbers at least 130 times–but it is still useless–please explain how this works out –please !
November 12, 2010 at 6:01 am
Sir,
My company is deducting P.F. from my salary from last 4 years, but i have not received any receipt of p.f.. i want to know that company is depositing my p.f. or not. please tell me the site from where i can know my p.f. details. my P.F. No.MH/97535/66.
thanks
regards
November 18, 2010 at 10:03 pm
Hi
I have worked with MNC for last 3 year , and before leaving I have filled a form to close my PF account, so my question is what will happen in this case? is some amount deducted from the PF amount?
Regards
Mukta Sinha
February 3, 2011 at 8:56 am
Can i contribute lumpsum amount ( i.e 30k) to my pf A/c.
March 21, 2011 at 10:23 pm
Hello sir,
If we increase our contribution in epf a/c in excess of 12%, interest will not be allowable on that excess amount. is it true..? please solve my problem……
thanks
August 14, 2011 at 10:23 am
hi can i deposit monthly some amount in my pf account ????or
my new company doesn’t have pf facility , so can i continue my previous account and deposit from myself.????
September 15, 2011 at 3:55 am
I applied for PF withdraw, the claim status is showing it in progressed <> , when can I expect to in hand OR how long it will take to deliver this amount,
October 25, 2011 at 2:44 am
Hi
I had worked in an organization till 11 months and left the company. Now presently working in another company. Its been a year I have not received my PF amount from my previous employer. Please suggest what is the duration of getting PF refund when one leaves a private job.
Thanks
November 24, 2011 at 9:44 pm
We are deducting and paying PF contribution even basic is more than Rs.6500/- . EPF is paid only on Rs.6500 and rest is deposited in PF. Please advise if there is any advantage in deducting full PF on basic salary above limit i.e.6500.00.
Thanks
December 14, 2011 at 10:38 am
Under Section 80C, I am aware that we can invest up to Rs 1,00,000 to avail of a deduction. Is our Provident Fund (deducted by the company) contribution included in this?
For instance:
Basic annual salary = Rs 4,80,000
PF contribution = Rs 57,600
Employer PF contribution = Rs 57,600
Since I have made a PF contribution of Rs 57,600, does that mean I am only left with Rs 42,400 to avail of Section 80C?
December 31, 2011 at 4:49 am
Sir, suppose i am in a job from which i will retire on feb 2012.
i am depositing Rs 5000.00 monthly as p.f.contribution.
after retirement i will receive the full amount of p.f on march 2012.
so i want to know that can i claim deduction u/s 80c for the contribution made at the time of retirement.. and why..???
January 11, 2012 at 7:48 am
How can I close my EPF A/c?
January 11, 2012 at 8:10 am
i am currently working as a private employee. in the year of april 2011 i resigned to my job. i already get form16 for the finicila year for my company. recently i joined in government organization january 2012. so can i tranfer my epf account to this government organgation or it is better to close. plese give reply to my mail id midhi_dream@yahoo.com
February 2, 2012 at 4:38 am
sir, i was working with an MNC company and now i have resigned my job. i applied for withdrawal of pf amount. it was applied on dec 2nd 2011. i didnt get any notification regarding the status of my PF withdrawal.could u pls let me know in what i can check it out???
February 2, 2012 at 12:32 pm
I was working in a company 2 yrs back …and after leaving the co. i applied for withdrawal of my PF amount ..I worked in that co. for 6 month …I got my Pf amount …but in that the amount which was being contributed towards my EPS was not given to me…..so please let me know how to get that EPS part of my total pf amount…….
if possible please reply on my email id
thanks
//sanket
mob:8000107357
February 17, 2012 at 9:58 am
Hello,
I am in abroad. I left india last year. My EPF account in india still there. Is it true that without india job, i.e. no monthly epf contribution , no anymore interest will be paid on whatever amount in EPF account. Is it better to withdraw all amount from account or still 8.5% interest is paid.
Please clear me these issues.
Thanks
sri
March 3, 2012 at 5:54 am
MY AC.NO.UP/VNS/0000938/000/0000340 .MY PF AMOUNT . MY MO.NO. 9307960999.PLESS SMS . PF TOTLE AMUNT.THANKS SIR.
March 4, 2012 at 9:24 pm
please send my pf balance my account no. MH/6048/58
REGARDS/SULOCHANA B.
May 7, 2012 at 5:10 am
as per provident fund what is number of CL and how many days holiday for complusary
September 21, 2012 at 1:52 pm
Hi,
I have PF account for the last 4 years 9 months. But I am leaving the company now. I next employer does not have a PF account. I therefore want to withdraw my PF. Will I be taxed? If yes, what are my other options to reduce tax burden.