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Transfer of PF

(Querist) 20 January 2009 This query is : Resolved 
A Ltd has company owned trust which is recognized by Regional Provident Fund authority. Some portion of employer’s contribution goes to Pension fund. B Ltd has company owned trust which is not recognized by Regional Provident Fund (RPF) authority. No portion of employer’s contribution goes to Pension fund.

In view of this, could you kindly let me know:

(I) whether one can transfer accumulations in A Ltd’s PF fund to B Ltd’s PF Fund?

(II) What are the advantages for registering with RPF?

(III) In which scenario withdrawal of PF amount from A Ltd’s trust would be tax free?

Many Thanks
Ashok Kumar Garg (Expert) 20 January 2009
Point wise reply is as under:

(i) No such transfer is possible. The transferee fund has to be a recognised fund.
(II) The employer gets the deduction from his income to the extent he contributes to such fund. The employee gets the benefit of deduction u/s 80C of the Income-tax Act.
(iii) Permitted withdrawls will depend on the scheme of the Provident Fund.

Ashok Garg
Kalpesh (Querist) 20 January 2009
As regards point # 2, it means employers contribution to unrecognised PF is not tax dedutible. Thanks once again for your revert.
ARVIND JAIN (Expert) 12 February 2009
WHAT ELSE?


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