Curious About Provident Fund? Let's Break Down Your Questions Together

Provident Fund Queries

I want to gain knowledge on Provident Fund. I would request you to please help me with the following questions:

1. What is the employee's share and what is the employer's share?
2. PF is calculated on which component of salary?
3. What is a Provident Fund challan, and when do we have to submit these challans?
4. Is Provident Fund taxable?
5. Which forms do we need to fill for Provident Fund?
- New Joinee Form
- If the employee had a PF account in his previous firm
- PF Withdrawal Form

Any additional information would be appreciated.

Regards

Provident Fund Contributions

1. Employee share - 12% (A/C-1)
Employer Share - 13.61% (A/C-1 = 3.67%, A/C-2 = 1.10%, A/C-10 = 8.33%, A/C-21 = 0.50%, A/C-22 = 0.01%)

PF Calculation

2. PF is calculated on the basic salary.

Submitting Provident Fund Challans

3. Go to the PF site... There you can see the demo of ECR (Electronic Challan cum Return). Prepare ECR, then upload and wait for approval. You have to submit ECR through Employer E-Sewa. If the ECR amount is less than 1 lakh, then you can submit the challan manually or online. However, if the amount is one lakh or more, online payment will be required.

Taxation on Provident Fund

4. No, PF is not taxable. The PF employee contribution amount is exempt from income tax.

Provident Fund Forms

5. Form-11 is used for a declaration that the employee was a member of PF in the previous organization or not, and Form-2 (Rev) is used for nomination under the PF Act.

6. Form-19 & 10C are used for withdrawal. Form-13 is used for transfer, and Form-31 is used for the application for advance withdrawal.

When and why do we need to fill a challan?

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In the context of financial transactions and payments, filling out a challan is typically required when making deposits, tax payments, or other types of financial submissions. Challans serve as a record of the transaction and provide details such as the amount being deposited, the purpose of the payment, and relevant personal or account information.

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If you have any specific questions or concerns regarding the process of filling out a challan or when it is necessary to do so, feel free to ask for further clarification.