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Govt mulling PF interest rate hike

May 16, 2011 Leave a comment


   Bangalore, May 16 (PTI) Union Minister for Labour and Employment M Mallikarjun Kharge today said the government was looking at further hiking the interest rate on Provident Fund from the present 9.5 per cent.

   “We are contemplating further increasing the interest rate on Provident Fund from the present 9.5 per cent. The interest rate on EPF (Employees Provident Fund) was increased to 9.5 per cent recently.

   “This time also we want to give more to the employees. We are working towards it”, he said while inaugurating the Southern Zonal Office of Director General of Mines Safety here.

   Kharge also said the Ministry was bringing in 32 amendments to the Mines Safety Act formulated in 1952 wherein a number of stringent steps would be introduced for the safety of mine workers.

   “The steps include increasing the penalty for violating mines safety norms from Rs 1,000 to Rs 1 lakh.


(Source)

Categories: EPF, EPF RATES, PF

Tax exemption on 9.5% interest on PF for 2010-11

May 16, 2011 Leave a comment


   New Delhi, May 16 (PTI) Giving relief to 4.71 crore subscribers of EPFO, the government has allowed tax exemption on the 9.5 per cent interest income on PF deposits for 2010-11.

    The Finance Ministry notification last week raises the income tax exemption to 9.5 per cent interest income from 8.5 per cent.

   The decision clears the air for the EPFO subscribers who were given increased interest rate by one percentage point for 2010-11, but the Finance Ministry had not matched the interest hike with a commensurate tax exemption.

   In the absence of the commensurate income tax exemption, the subscribers were earning higher returns even as it was liable to income tax.

   EPFO had decided to provide 9.5 per cent interest rate on PF deposits for 2010-11 after which it was endorsed by the Finance Ministry in March this year.


(Source)

Categories: EPFO, INCOME TAX, PF

Cabinet okays PFRDA Bill; may go to Parliament soon

March 17, 2011 Leave a comment
   
    The Union Cabinet today approved a long-pending bill, which is aimed at giving statutory power to the pension regulator PFRDA, paving way for introduction of the same in the current session of Parliament.

   The draft legislation is aimed at upgrading the status of the Pension Fund Regulatory and Development Authority (PFRDA), which has been functioning for the past eight years without Parliamentary approval.

   “It has been approved and is likely to be introduced in the current session,” a minister said after the Cabinet meeting presided over by Prime Minister Manmohan Singh.

   In the absence of statutory status, PFRDA was performing the role of the interim regulator.

   Finance Minister Pranab Mukherjee had sought support of the Opposition, mainly the BJP, for passage of the key pending reform bills.


Source

Categories: PF

Finmin approves 9.5% interest on PF deposits for 2010-11

March 17, 2011 Leave a comment
 
The finance ministry today approved higher interest rate of 9.5 per cent to over 4.7 crore depositors with the Employees Provident Fund Organisation (EPFO) for 2010-11.

The EPFO had been paying 8.5 per cent interest on PF deposits since 2005-06. In September last year, it had recommended an increase in interest rate to 9.5 per cent for 2010-11 after discovering Rs 1,731 crore surplus in their books of accounts.

“The finance ministry has ratified 9.5 per cent rate of return on PF deposits for 2010-11. We have received a notification in this regard,” Central Provident Fund Commissioner Samirendra Chatterjee told PTI.

Chatterjee further added that “our calculations regarding Rs 1,731 crore surplus in the interest suspense account were found correct by the finance ministry and so they approved this higher rate of return”.


Source

Categories: PF

Delay in deposit of P.F. dues attracts penal damages

January 11, 2011 Leave a comment

.
Damages are levied at the following FLAT RATES:
For 0 — 2 months delay – @ 5 % p.a. 
  
For 2 — 4 months delay – @10 % p.a. 
  
For 4 — 6 months delay – @ 15 % p.a. 
  
For delay above 6 months – @ 25 % p.a.

(subject to a maximum of 100%)
Levy of damages at lesser rates is not permissible under  the EPF & MP Act.

Reduction/Waiver of damages – considered only for Sick  Industrial Companies having rehabilitation scheme  sanctioned by BIFR. 
 

Deposit dues in time – avoid penal damages.


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Categories: PF

Central Government makes amendment in Public Provident Fund Scheme. .

December 20, 2010 Leave a comment


MINISTRY OF FINANCE 
(Department of Economic Affairs) 
NOTIFICATION 
New Delhi, the 7th December, 2010
G.S.R.956(E).-In exercise of the powers conferred by sub-section (4) of Section 3 of the Public Provident Fund Act, 1968 (23 of 1968), the Central Government hereby makes the following Scheme further to amend the Public Provident Fund Scheme, 1968, namely :-
1. (1) This scheme may be called the Public Provident Fund (Amendment) Scheme, 2010.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Public Provident Fund Scheme, 1968 in paragraph 9, in sub-paragraph (3), after the proviso, the following proviso shall be inserted, namely :-
“Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu Undivided Family, where fifteen years from end of the year in which initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e. the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.”
[F.No. F. 7/4/2008-NS.II] 
M.A. KHAN, Under Secy.


Categories: PF

Tax free Provident Fund

September 28, 2010 Leave a comment
Categories: IE's, INCOME TAX, PF