Employee Provident Funds, 1952
What is the purpose of the Employee Provident Funds Act of 1952?
The Act serves the dual purpose of providing retirement benefits and survivor benefits to industrial workers, ensuring financial security during and post-employment.
How does taxation work for Provident Fund withdrawals?
PF withdrawals are tax-free if the amount is withdrawn after five years of continuous service. TDS may apply in certain cases, but there are provisions for exemptions.
What are the different types of Provident Funds, and who can participate in them?
Provident Funds include SPF, PPF, RPF, and URPF. Eligibility varies, with SPF for government employees, PPF for the public, RPF for establishments with 20 or more employees, and URPF for smaller establishments with optional membership.
What is the eligibility criteria for employees to join Provident Funds?
Employees earning up to ₹6,500 per month are eligible, provided they have completed three months of continuous service or 60 days of actual work.
How does the Universal Account Number (UAN) simplify Provident Fund management?
UAN is a unique number assigned to employees, independent of employers, facilitating the linking of all PF accounts when switching companies and enabling online verification and updates.
References:
- EMPLOYEES’ PROVIDENT FUNDS
- INDIA CODE
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