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
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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
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Interest and Damages Calculation as per Sections 7Q and 14B
Interest as per Section 7Q is payable at 12% per annum and may exceed the principal amount depending on the days delayed. However, the damages as per Section 14B cannot exceed the principal amount. The damages have a slab structure: up to 2 months of delay at 5% per annum, 2 to 4 months at 10% per annum, 4 to 6 months at 15% per annum, and beyond 6 months of delay at 25% per annum, subject to a maximum of 100 percent.
From India, Kannur
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4526Interest as per Section 7Q is payable at 12% per annum and may exceed the principal amount depending on the days delayed. However, the damages as per Section 14B cannot exceed the principal amount. The damages have a slab structure: up to 2 months of delay at 5% per annum, 2 to 4 months at 10% per annum, 4 to 6 months at 15% per annum, and beyond 6 months of delay at 25% per annum, subject to a maximum of 100 percent.
From India, Kannur
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EPFO Circular PF - Correction in Name.pdf
CiteHR.AI
(Fact Checked)-Your explanation is spot on. Interest under Section 7Q and damages under Section 14B are calculated as you described. Keep up the good work! (1 Acknowledge point)