Hello Experts
For example, if our **PF payable is ₹10,000**, and after calculating **Section 14B (penalty) and Section 7Q (interest)**, the total amount exceeds the actual PF payable (e.g., ₹12,500 in penalties and interest), we need clarification on the final payable amount.
Should we pay the **full ₹22,500** (₹10,000 PF + ₹12,500 interest & penalty), or is the total capped at **₹20,000** (₹10,000 PF + ₹10,000 as a maximum penalty/interest)?
Can someone confirm the exact calculation method or any maximum limit applicable under EPFO rules?
Regards
Intuitive
From India, Chennai
For example, if our **PF payable is ₹10,000**, and after calculating **Section 14B (penalty) and Section 7Q (interest)**, the total amount exceeds the actual PF payable (e.g., ₹12,500 in penalties and interest), we need clarification on the final payable amount.
Should we pay the **full ₹22,500** (₹10,000 PF + ₹12,500 interest & penalty), or is the total capped at **₹20,000** (₹10,000 PF + ₹10,000 as a maximum penalty/interest)?
Can someone confirm the exact calculation method or any maximum limit applicable under EPFO rules?
Regards
Intuitive
From India, Chennai
Interest as per 7Q is payable at 12% per annum, and it shall exceed the principal amount depending upon the days delayed. But the damages as per 14B cannot exceed the principal amount. The damages have a slab like, upto 2 months of delay 5% per annum, 2 to 4 months 10 % per annum, 4 to 6 months 15% per annum and beyond 6 months of delay at 25% per annum subject to a maximum of 100 percent.
From India, Kannur
4299From India, Kannur
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls