josh777_123 (n/a) 12 December 2008

Problem with PF settlement

Hi Lawyer Club friends,

I worked for an IT MNC and left the job in october 2007.The

company has settled my provident fund and the company's

agent(chartered account) has sent me the settlement cheque.What I

have observed later is that the interest earned is meagre compare to the

principal amount that was deducted on montly basis from july 2004

till october 2007. I like to know whether there is any way to

know the interest amount earned from the july2004 till october

2007 is correct or not.Since the interest earned is very low, I

guess there might be some error/faud committed(consciously or

unconsciously) by the parties(company/PF dept/company's agent)

and is there is any way to know it how ?
The agent has deducted 30% at source pus surcharge(3%) , is this

is correct/legal?

The PF and other details as below

from 12/7/2004 till 19/10/2008
Contribution from employee : 145880
Interest earned @8.5 % : 1276

Contribution from company : 171717
Interest earned @8.5 % :1507

Total contribution : 317597
Total interest earned : 2783

Gross amount to be settled : 320380

Tax deducted : 96114
Edu. cess : 2883
Total tax : 98997

Also I like to know why there is difference of contribution money from the employer side which is on lower side compare to my contribution ?

Thanks
Josh

Reply Follow

2 Replies

Ramnath Naik (Legal Advisor) 24 December 2008

dear Mr. josh

there is lot of confusion in ur statement. frist check whether ur amnt is with EPF fund? then the amt of both employer & employee must be same and i didnt understand about the tax deduction.

so my sugession is to take Employer & employee code & approach to the consent EPF section, where u can know the details based on the annual slips or returns filled by ur employer i.e 3 A & 6A

Hope i have helped little but if u clear cut picture about that kindly mail or contact with the details at below mentined Email or No.

ramnathmsw@yahoo.com or 9448317309

With regards

Ramnath

M. Sahul Hameed (Advocate Profession) 06 April 2009

you are calculating in a normal way i.e, from the date opf deduction to lasr working day but EPF department has its onn method of calculation of intere, in that method. the intsrest arrived in your statement is correct. if you have any doubt in the calculation try to get a copy of EPF staff hand book and workout on the method enshrined in it.