Hi All, I have recently joined a new company. In my previous organization, the PF contribution was Rs. 780 (12% of Rs. 6500) from both employer and employee. However, the "Basic" component was much more than Rs. 6500.
PF Contribution Structure Inquiry
What I want to know is, can I have this same structure with my new company? Will there be any legal obligations for my company or me if we do this?
Different "Basic" for PF and Income Tax
Also, can I have different "Basic" for PF and income tax calculation like I had in my previous company?
If possible, I would like to back this up with documentation so that my new company can implement this.
Thanks...
From India, Mumbai
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1PF Contribution Structure Inquiry
What I want to know is, can I have this same structure with my new company? Will there be any legal obligations for my company or me if we do this?
Different "Basic" for PF and Income Tax
Also, can I have different "Basic" for PF and income tax calculation like I had in my previous company?
If possible, I would like to back this up with documentation so that my new company can implement this.
Thanks...
From India, Mumbai
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PF Contribution Details
The PF contribution is 12% of the basic salary from both the employee and the employer. For the calculation, the maximum limit of the basic salary is Rs 6500/-. This means that even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, which is Rs 780. However, if an employee desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges.
From Pakistan, Lahore
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The PF contribution is 12% of the basic salary from both the employee and the employer. For the calculation, the maximum limit of the basic salary is Rs 6500/-. This means that even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, which is Rs 780. However, if an employee desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges.
From Pakistan, Lahore
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Thanks for the reply, Saad. However, what I want to know is if I have a capping of Rs. 780 as a contribution, will I also have to keep my "basic" as Rs. 6500 for taxation, or can it exceed that and the PF still be Rs. 780?
From India, Mumbai
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From India, Mumbai
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The ceiling salary fpr PF contribution is Rs. 6500. But for Income Tax purpose the actual salary has to be taken into account. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Does that mean I can have Rs.25000 as Basic and still have Rs.780 as PF? Is there any document to support the same? My company is asking for some documentation on the same ....
From India, Mumbai
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From India, Mumbai
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If the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, which is Rs 780. However, if an employee desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges.
From Pakistan, Lahore
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From Pakistan, Lahore
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc