Understanding EPF and Pension Challans: Can You Help Clarify Their Differences and Uses?

Respected Seniors and Juniors,

Please help me differentiate the treatment of EPF and Pension Challans. What are the formats, and what are the applicability of pension challan?

I will be very grateful to you.

Thanks and Regards,
Vikas Kumar

Hi,

There are no separate challans for the remittance of EPF contribution and Pension contribution. EPF contributions (12% + 3.67%) are shown under A/c. No.1 of the challan, and Pension contribution (8.33%) is shown under A/c. No.10.

Regards,
reebi

Dear Vikas,

Reebi is correct, there are no separate challans for PF and Pension. There is only one challan containing 5 accounts:

1. Account No. 1 - 15.67%
2. Account No. 2 - 1.1%
3. Account No. 10 - 8.33%
4. Account No. 21 - 0.5%
5. Account No. 22 - 0.01%

I hope this clarifies the issue regarding challans.

Regarding your query about wages for pension and PF, if your basic and DA are up to Rs. 6500 per month, this act is applicable to you. However, if your salary exceeds this amount, the act is not applicable. Nevertheless, it is a beneficial legislation, and some employers provide PF even if your salary surpasses Rs. 6500.

For example, if your wages are Rs. 10,000 and the employer deducts 12% from your salary, the deduction would be Rs. 1200, and the employer would also contribute 12%, i.e., another Rs. 1200. However, the amount deposited in the pension fund will be only 8.33% of Rs. 6500, while the remainder will go to PF.

I hope this explanation clears up any doubts.

Thank you,
J. S. Malik