Provident Fund (PF)
EPF is one of the main platform of savings in India for nearly all people working in Government, Private or Public sector organizations. It is implemented by the Employees Provident Fund Organization (EPFO) of India. Companies which have employee strength of 20 or more are required to be registered with PF Department. The capacity of 20 includes contract employees like housekeeping, security or other contractual workers in the business. Those companies which do not have the endorsed number of employees but willing to register themselves to provide the advantages of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office. Registration has to be done within One month from the date of hiring 20 employees. Any delay may result in a penalty. Our experts at TaxFino can help you get Provident Fund (PF) registration for your organization.
Professional Tax (PT)
Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or persons who carry out some form of business/profession. Professional tax is imposed at the state level in India. Different states have different rates and methods of collection. It is not imposed in all states. The states which impose professional tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional Tax is deducted from the salary of the salaried employees by the employers and same is deposited with the State Government. Our experts at TaxFino can help you get Professional Tax (PT) registration for yourself as well as your organization/Startup.
Step 1: Provident Fund Registration – eStartIndia will prepare your application of PF along with a collection of required documents and employee data
Step 2: PF application processing – eStartIndia will submit your PF application for processing as per the format prescribed
Step 3: PF Allotment – eStartIndia will receive and share with you the PF registration for your business along with receiving UAN for your employees Click here to read more about "ESI Registration"
1.Statutory Guidelines adherence – Provident fund registration helps businesses adhere to statutory guidelines since it is mandatory for businesses with over 20 employees.
2.Employee savings – It aids savings for employees by maintaining a regular fund contribution from both employer and employees
3.Fund availability – Contributions to Provident fund can be withdrawn by employees in their time of need such as medical emergency, marriage expenses, education, etc.
4. Tax benefits – The interest earned on the Provident fund savings is tax-free and the contributions to fund are deductible from salary
5. High safety – The PF amount is safe and secure from any market variations and employees are assured a return on their principal amount
Every person engaged actively or otherwise in any profession, trade, callings or employment and falling under one or the other of the classes mentioned in the second column of Schedule I appended to Profession Tax Act, is liable to pay Profession Tax.
The current rate of interest allowed on PF contributions is 9.5% p.a.
No, interest earned by an employee on his Provident Fund balance is not taxable.
The RPFC (Regional Provident Fund Commissioner) allots the PF number to an organisation that enrols with it. For Delhi based companies this number could be DL/92803. In addition to this, the employer allots a separate number to each individual employee. The employee’s PF Account number would then be DL/92803/123 (Example).
You can change your voluntary contribution only at the start of the financial year. Once the change is opted for, it must run throughout the year and cannot be changed till the end of the financial year.
Voluntary contributions alone cannot be withdrawn.
Under the Provident Fund Scheme, you can avail of Refundable and Non-refundable Loans for specific purposes by making an application in this regard.