How Can Our Construction Company Register for PF with Over 20 Employees?

Hi all,

I am Haritha, working in a construction company. We have more than 20 employees in our company. Now, my company wants to register for PF. Please, can you tell me the procedure for our company to get registration in PF?

Kindly inform me of the procedure. I am looking forward to your replies.

With regards,
Haritha

Dear Friend,

PF Registration

You need to prepare the following documents to obtain a PF code from the respective PF authority:

- Form 2
- Proof of Date of Inception
- Lease/Rental Agreement
- Total Number of Employee Strength (20)
- First Invoice raised to the client
- Certificate of Incorporation with Registrar of Companies
- Copy of Attendance
- Copy of Paysheet
- Details of Higher Officials like proof of address – Passport/Ration Card/Bank Passbook
- Demand Draft – for the total amount of PF deducted from the salary

Feel free to reach out to me for any further details.

Best Regards,
V. Sathyanarayanan

Dear Haritha,

We would be happy to assist you in registering your company under the aforementioned Act. Please provide me with your email ID so that we can send you the list of required documents.

Thank you.

Dear Friends,

Can anyone tell me if tax is exempted on Pension Fund also? This is a query from Satish.

Regards,
Amith R.

I didn't get an answer to my query from many portals where I had posted my question. Also, some of the people who prepare and file IT returns for salaried individuals (some even claiming to file 1000 returns every year) couldn't answer the question - whether the withdrawal of the pension fund (with EPF) is liable for taxation.

So, I did some self-study and found that:
1) If EPF is withdrawn after 60 months of continuously maintaining the PF account, then no tax is applicable on it.
2) Along with EPF, the pension fund amount is also credited by RPFO. That amount is liable for taxation.

The worst thing is that the PF department doesn't send any note on how it has refunded the EPF and Pension Fund amount (what was due and what was paid, there is no communication). Even worse is the fact that they are not sending statements to many organizations for the last 2 years.

If one wants, he/she can hide the EPF and Pension fund withdrawals (as the RPFO guy suggested to me - "why declare it as an income"), but I am sure honest taxpayers will want to pay every single paisa that they owe.

If anyone has found any specific reference, please post it here. It will be useful for many people.

Thanks - Satish