Provident Fund
Provident Fund:
A provident fund is a type of welfare program for employees. Every month, the employer deducts a specified amount from the employee's wage to contribute to the Provident Fund under this program. The company additionally contributes a portion of the employee's salary to the provident fund. The interest gained on these investments is likewise credited to the employees' provident fund accounts. If specific requirements are met, the cumulative sum is delivered to the employee at the time of retirement.
Employer and employee PF contributions equal 12% off (base pay + dearness allowance + retention allowance). Both(employee and the employer) must contribute equally.
The contribution is computed on the basic pay for most employees in the private sector.
Any enterprise with 20 or more employees in India can apply for PF registration with the Provident Fund Department within 30 days after exceeding the limit.
On retirement or resignation, the employee receives a sum that comprises their own and the employer's contributions, plus interest.
Eligibility for EPF enrollment
For Employer
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PF registration is required for all enterprises that employ 20 or more workers.
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For every other establishment with less than 20 employees, the federal Government must mention this in the notification on their behalf.
For Employee
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Employees' income less than Rs.15000 per month must join the EPF.
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However, an employee earning more than Rs.15,000 per month can still be a member and contribute to the company and the Assistant PF commissioner.
Receiving PF is the right of every employee, so we at TAX BARR will make sure to get all your employee's data registered in the PF Portal to receive their share of PF & filing their returns in time.
Benefits of Provident Fund Registrations:
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Tax-free
Your EPF account funds are tax-free. If you choose to withdraw your EPF money at maturity, the sum is tax-free. However, you will be taxed if you remove the money before five years of continuous service.
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Long-term investment
This gives you financial security. The program urges its participants not to take their savings before reaching maturity.
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Pension Plan
The pension system receives 8.33 percent of the employer's 12 percent contribution. As a result, a member can also benefit from the applicable pension plan.
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Easily accessible
With the linkage of Aadhaar to the UAN, a member may immediately transfer their PF money after job transfers.
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Insurance advantages
If there is no group life insurance, the employer must contribute 0.5 percent of the base wage to life insurance.
Documents required:
PAN CARD
PAN Card of an
entity
COI
Certificate of Incorporation from MCA/Registration Certificate from ROF
Digital Signature
DSC of Authorised
Applicant
Bank details
Latest Bank Statement/ Copy of cancelled cheque/ copy of first page of passbook
Entity should provide registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable
Address Proof
Address proof that is in the name of the establishment I.e, Rent agreement/ Water Bill/ Electricity Bill/ Telephone bill.
Personal Details
Mobile No &
Email
Other Details
Certificate of Registration
Specimen signature of directors and authorized signatories, Employee details at the time of registration