Provident Fund TDS is the amount of tax getting deducted from the Employee by the person paying Trustees of PF.
On this page:
Trustees of a provident fund
Accumulated balances in Provident Fund
Accumulated balances in Provident Fund to the extent they are exempt under section 10(12) to be excluded
At the time of payment of the sum
As if, it forms part of 'Salaries'.
How the Employees' Provident Fund Scheme works?
Both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month.
The rate of contribution is 10% in the case of
Any covered establishment with less then 20 employees,
Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction,
Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and
Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories.
A member can withdraw full amount at the credit in the fund at the time of retirement from service after attaining the age of 55 year.
Full amount in provident fund can also be withdraw by the member under the following circumstance:
A member who has not attained the age of 55 year at the time of termination of service.
A member is retired on account of permanent and total disablement due to bodily or mental infirmity.
On migration from India for permanent settlement abroad or for taking employment abroad.
In the case of mass or individual retrenchment.
Payment from provident fund is xempt to the extent provided in sec. 10(11) & sec. 10(12).
Any payment received from a Statutory Provident Fund (SPF), is exempt.
Any payment from any other provident fund notified by the Central Government is also exempt. The Public Provident Fund (PPF) established under the PPF Scheme, 1968 has been notified for this purpose.
What is not started today is never finished tomorrow. Johann Wolfgang von Goethe