Lower & higher limit of deduction of PF

Querist : Anonymous (Querist) 08 August 2010 This query is : Resolved
What is the lower & higher limits of PF deductions to an employee?
Thanking in advance.

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A V Vishal (Expert) 08 August 2010
There is no lower or higher limit of deduction in PF it is uniform for all employess @ 12%, however if the employee doesnot come under the ambit of PF but still wishes to invest then 10% is the limit.

B K Raghavendra Rao (Expert) 08 August 2010
Minimum limit for deduction of PF as per statute is 10% but an employee at his will can increase his share of provident fund upto any limit but would not get corresponding contribution from the employer.

Guest (Expert) 14 August 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.9271971251, 9960223100
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com

REGARDING THE PF DEDUCTION KINDLY NOTE THAT.

1.THE RELEVENT ACT IS PROVIDENT FUND ACT.
2.PERMANENT EMPLOYEE CAN CONTRIBUTE TO EMPLOYEES PROVIDENT FUND FROM HIS SALARY PER MONTH.IT IS 12 % OF PF SALARY.
3.KINDLY NOTE THAT FOR CALCULATION PF SALARY ,ALL ALLOWENCES ARE NOT INCLUDED .IT DEPENDS ON THE SERVICE REGULATIONS AND EMPLOYMENT AGREEMENTS.
4.THE CONTRIBUTION MADE BY PERMANENT EMPLOYEE TO HIS PROVIDENT FUND AT RATE OF 12 PERCENT AS ABOVE, THE EMPLOYER HAS TO CONTRIBUTE EQUAL AMOUNT TO PROVIDENT FUND.THIS IS STATUTORY PROVISION.
5.EMPLOYEE CAN CONTRIBUTE MORE AMOUNT AS VOLUNTARY PROVIDENT FUND AND INCREASE THE PF.CONTRIBUTION UP TO 20 PERCENT OF HIS SALARY PER MONTH.IT INCLUDES 12 PERCENT COMPULSORY STATUTORY PF CONTRIBUTION.
6.KINDLY FURTHER NOTE THAT EMPLOYERS CONTRIBUTION WILL BE LIMITED ONLY EQUAL TO 12 PERCENT STATUTORY LIMIT AS ABOVE.
7 KINDLY NOTE THAT PROVIDENT FUND AMOUNT IS ACCUMULATED TO THE PROVIDENT FUND ACCOUNT OF EMPLOYEE AND IS PAID BACK TO HIM AT THE TIME OF HIS RETIREMENT OR RESIGNATION.THIS AMOUNT CAN NOT BE ATTACHED BY ORDER OF ANY COURT .IT IS A PROVISION OF PF ACT AND IS RESERVED FOR OLD AGE OF EMPLOYEE.
8EMPLOYEE CAN GET LOAN ON PF.AMOUNT AS PER PF RULES IN CASE OF URGENCY.
9PROVIDENT FUND AMOUNT IS ALLOWED AS DEDUCTION FROM TAXABLE INCOME OF EMPLOYEE.
YOU MAY WRITE OR CALL OR SMS FOR ANY FURTHER DETAILS.
GOOD LUCK.

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