2006-08-27 03:02:53 · 5 answers · asked by ganeshilal v 1 in Business & Finance ➔ Investing
According to Section 6 of the Employees Provident Fund and Miscellaneous Provision Act 1952 : The employer's contribution to the Employees Provident Fund shall be eight and one third (8.33) percent of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees. The employees may have been employed by him, directly or by or through a contractor. The employees' contribution shall be equal to the contribution payable by the employer in respect of him. If any employees so desires, his contribution may be an amount exceeding eight and one-third (8.33 %) of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under section 6 and any provision thereof.
2006-08-27 03:16:22 · answer #1 · answered by Best Answer Expert 3 · 0⤊ 0⤋
I presume that by making additional contribution to voluntary provident fund ,over and above compulsory provident fund, you want to raise total contribution to 12%.
I think you need not contribute with purpose of availing tax concessions, as your income is likely to be below Rs.1lac p.a. this F.Year.
If you want to save with the purpose of saving, there are many better options available. Why to block funds for longer period that too indirectly through your employer?
Even in case you feel EPF good option, please open PPF in post office/nationalised bank and make maximum contributions according to your budget.
# In PPF you can deposit min.500 max.70,000in one year. No commitment every month.
# After 3 years loan & and after 5 years withdrawl facility is there. You may not avail same, but by availability of this facility, you feel more secured
Presently the interest on PPF is income tax free.
In case you are in Delhi you may seek detailed opinion from me.
If you want more details, you are free to send me email.
BEST OF LUCK
2006-09-01 04:25:34 · answer #2 · answered by PK LAMBA 6 · 0⤊ 0⤋
Make it 25%.
2006-08-27 03:13:37 · answer #3 · answered by Vinegar Taster 7 · 0⤊ 0⤋
yes you must
2006-08-31 18:52:39 · answer #4 · answered by munmun 2 · 0⤊ 0⤋
Why not?
2006-09-01 22:42:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋