Frequently asked questions
What is the rate of contribution to Employee Provdident Fund?
12% of the basic salary is contributed by salaried individuals and the other 12% is contributed by the employer for each month ( Employer contributes total 13.61% as he has to bear administration as well) .Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension Fund and 3.67% goes to PF.
What is the current interest rate on EPF?
The current rate of interest is 8.75% p.a. The interest is compounded yearly.
The point to note in the interest calculation is done only on the part of EPF not on EPS.
Example : If your contribution towards EPS is Rs.1,800 (12%) and your employer contribution towards EPF is Rs.550 (3.67%) and Rs. 1250 (8.67%) towards EPS, than the interest of 8.75% would be calculated on the amount of Rs.2,350.
What are the Tax-Benefits of EPF contribution?
Another benefit of this robust scheme is that the contribution made towards EPF is an eligible deduction under section 80C. The maximum deductible contribution is ceiling the limit of section 80C i.e. Rs.1.50 lakhs for Financial year as of now.
My basic salry is 9000 per month, is it mandatory for me to make contribution to Employee Provident Fund?
Yes, contributing to EPF is mandatory for the employees who have a basic salary plus dearness allowance is up to Rs.15,000 (earlier it was Rs.6,500). And those who are earning above Rs.15,000 may contribute voluntarily.
How Premature Withdrawal from EPF account is taxed?
Premature withdrawal means taking money out from the EPF account before 5 years of continuous service. Please note that continuous service means continuous contribution for 5 years. If you left the job after 3 years but made withdrawals after 5 years than also it would construed as premature withdrawal and full withdrawn amount would be taxed.
Budget 2015 has levied 10% TDS on premature withdrawal if exceeds Rs.30,000.
What is Illegal Withdrawal of EPF Money?
As per EPF rules, withdrawing of EPF money at the time of switching jobs is illegal. You can withdraw only and only if you have not joined any other company within two months of quitting the job. You can transfer your EPF money once you get a new job.
Provident Fund Registration (PF)
Purchase this Plan to apply for Provident Fund Registration if you have 20 or more employees working in your establishment.
What is Provident Fund? It is social security legislation for the future benefit of employees and their dependants; in case of unfortunate incidents occurring in the future.- Filing of application form with PF authority
- Preparing of necessary documents
- Follow up till you obtain your PF registration certificate
- Issue of PF allotment letter
- Any establishment employing 20 or more employees
- You can also apply for voluntary registration under Provident Fund
- Copy of PAN Card of Establishment (i.e. PAN of Proprietor/LLP/Company)
- Address proof of the Establishment
- List of Directors / Partners/Proprietor along with their address proof
- Digital Signature of the Proprietor / Director / Partner
- Ownership Proof like your property sale deed
- Registration Certificate of the Establishment (like sale deed, Certificate of Incorporation of Company etc)
- Current list of employees with their details
- Any other documents as required
| Plan Charges | 6999 |
| Goods & Services Tax (GST) | 1260 |
| Total Cost | 8259 |
* Estimate Time for Service Completion
14-16 Days
What is the rate of contribution to Employee Provdident Fund?
12% of the basic salary is contributed by salaried individuals and the other 12% is contributed by the employer for each month ( Employer contributes total 13.61% as he has to bear administration as well) .Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension Fund and 3.67% goes to PF.
What is the current interest rate on EPF?
The current rate of interest is 8.75% p.a. The interest is compounded yearly.
The point to note in the interest calculation is done only on the part of EPF not on EPS.
Example : If your contribution towards EPS is Rs.1,800 (12%) and your employer contribution towards EPF is Rs.550 (3.67%) and Rs. 1250 (8.67%) towards EPS, than the interest of 8.75% would be calculated on the amount of Rs.2,350.
What are the Tax-Benefits of EPF contribution?
Another benefit of this robust scheme is that the contribution made towards EPF is an eligible deduction under section 80C. The maximum deductible contribution is ceiling the limit of section 80C i.e. Rs.1.50 lakhs for Financial year as of now.
My basic salry is 9000 per month, is it mandatory for me to make contribution to Employee Provident Fund?
Yes, contributing to EPF is mandatory for the employees who have a basic salary plus dearness allowance is up to Rs.15,000 (earlier it was Rs.6,500). And those who are earning above Rs.15,000 may contribute voluntarily.
How Premature Withdrawal from EPF account is taxed?
Premature withdrawal means taking money out from the EPF account before 5 years of continuous service. Please note that continuous service means continuous contribution for 5 years. If you left the job after 3 years but made withdrawals after 5 years than also it would construed as premature withdrawal and full withdrawn amount would be taxed.
Budget 2015 has levied 10% TDS on premature withdrawal if exceeds Rs.30,000.
What is Illegal Withdrawal of EPF Money?
As per EPF rules, withdrawing of EPF money at the time of switching jobs is illegal. You can withdraw only and only if you have not joined any other company within two months of quitting the job. You can transfer your EPF money once you get a new job.