Dear All,
One of our employee, who has joined organisation 2days back, has put in a request for voluntry exemption from PF, reason being that he already has made investments totalling to Rs 1Lakhs.
Company is depositing an equal 12%of individuals basic, and does not want to allow exemption of this nature.
My questions are,
1. If company turn down this exemption request,can there be any legal complicacies.
2. What is your view on these kind of exemption requests.
Looking for early response.
Regards,
Fatima
From India, Delhi
One of our employee, who has joined organisation 2days back, has put in a request for voluntry exemption from PF, reason being that he already has made investments totalling to Rs 1Lakhs.
Company is depositing an equal 12%of individuals basic, and does not want to allow exemption of this nature.
My questions are,
1. If company turn down this exemption request,can there be any legal complicacies.
2. What is your view on these kind of exemption requests.
Looking for early response.
Regards,
Fatima
From India, Delhi
604
Dear
As per the statutory requirement the employee who is drawing basic+DA less than 6501 (as per PF act) will be covered under the scheme. Individual's requests can not be considered and there is no legal complication. If his salary is more than 6500/- or his age is more than 58 years, he can be exampted.
From India, Vadodara
As per the statutory requirement the employee who is drawing basic+DA less than 6501 (as per PF act) will be covered under the scheme. Individual's requests can not be considered and there is no legal complication. If his salary is more than 6500/- or his age is more than 58 years, he can be exampted.
From India, Vadodara
Dear Friends,
If the any employee whose is basic salary is more that 6500 & he is never been a member of PF or with draw the PF amount then PF exemption is possible .
But some of legal requirement is followed :
1. Fill the form 11
2. under taking by the employee .
these are kept in the personnel file of the employee.
From India, New Delhi
If the any employee whose is basic salary is more that 6500 & he is never been a member of PF or with draw the PF amount then PF exemption is possible .
But some of legal requirement is followed :
1. Fill the form 11
2. under taking by the employee .
these are kept in the personnel file of the employee.
From India, New Delhi
Dear
First of all I would like to tell you the mandatory provisions of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 that any employee who is drawing Rs. 6,500/- or less than Rs. 6,500/- (as basic salary), the employer is bound to deduct the provident fund and compliance is mandatory. But any of the employee is drawing more than Rs. 6,500/- as basic salary, then it is upto the employer whether the employer want to consider his request for exemption or not. If employer accepts his request, then employer has to fill up Form No. 11 and have to ticked the Point "(e) I have never been a member of any Provident Fund and / or Family Pension Scheme". If the employer turndown/rejects his request, there no complication in this regard, for employer.
From India, Gurgaon
First of all I would like to tell you the mandatory provisions of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 that any employee who is drawing Rs. 6,500/- or less than Rs. 6,500/- (as basic salary), the employer is bound to deduct the provident fund and compliance is mandatory. But any of the employee is drawing more than Rs. 6,500/- as basic salary, then it is upto the employer whether the employer want to consider his request for exemption or not. If employer accepts his request, then employer has to fill up Form No. 11 and have to ticked the Point "(e) I have never been a member of any Provident Fund and / or Family Pension Scheme". If the employer turndown/rejects his request, there no complication in this regard, for employer.
From India, Gurgaon
Hi Fatima
Explain him as he is getting more benefit if he has PF as even the company is contributing him the same amount.
Even if he doesn't need PF contribution and if His basic is more than 6500/- then fill Form No.11 and get signature.
Regards
From India, Bangalore
Explain him as he is getting more benefit if he has PF as even the company is contributing him the same amount.
Even if he doesn't need PF contribution and if His basic is more than 6500/- then fill Form No.11 and get signature.
Regards
From India, Bangalore
Dear All,
It appears to me that the fellow is quite young and perhaps is under impression that he can save only Rs.1 lakh in a financial year for income tax rebate. He is entitled to get rebate for Rs.1 lakh savings but nothing prevents him from saving more. He is not a loser in any way. He gets equal amount of employer's share plus pention benefits. This may please be explained to him. He may agree to be cover by PF and the allied EPS 1995. If possible, Fatima Madam may show this discussion to him and post his reaction to it. Thanks and regards to all,
From India, Pune
It appears to me that the fellow is quite young and perhaps is under impression that he can save only Rs.1 lakh in a financial year for income tax rebate. He is entitled to get rebate for Rs.1 lakh savings but nothing prevents him from saving more. He is not a loser in any way. He gets equal amount of employer's share plus pention benefits. This may please be explained to him. He may agree to be cover by PF and the allied EPS 1995. If possible, Fatima Madam may show this discussion to him and post his reaction to it. Thanks and regards to all,
From India, Pune
Dear Fatima,
Greetings for the day,
First of all as describe by pon that "Statutory requirements can not be diluted on individual's request" is true, secondly if the basic salary is Rs. 6500/- he can't be excluded.Thirdly once he become the member of epf he can only & only be exemted after withdrawing the same.withdrawl is only possible if he tedering his resignation.After resignation on rejoining there should be service break which may affect on gratuity part.
Secondly told that what are the benefit of that EPF that it provides 9.5% of compound intrest annually which is not providing by any of the scheme either he invest 1 lakh or 10 lakh EPF provides intrest free loan & other benefits.Last but not least membership of EPF is the only proof that he is an employee of the company any discrimination can be subject to law as the date of membership & deductions are itself a proof.
Thanks & Regards,
from,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
Greetings for the day,
First of all as describe by pon that "Statutory requirements can not be diluted on individual's request" is true, secondly if the basic salary is Rs. 6500/- he can't be excluded.Thirdly once he become the member of epf he can only & only be exemted after withdrawing the same.withdrawl is only possible if he tedering his resignation.After resignation on rejoining there should be service break which may affect on gratuity part.
Secondly told that what are the benefit of that EPF that it provides 9.5% of compound intrest annually which is not providing by any of the scheme either he invest 1 lakh or 10 lakh EPF provides intrest free loan & other benefits.Last but not least membership of EPF is the only proof that he is an employee of the company any discrimination can be subject to law as the date of membership & deductions are itself a proof.
Thanks & Regards,
from,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
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