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Anonymous asked in Social ScienceEconomics · 10 years ago

Any one can explain what is Exempted and Un-Exempted establishments in an Provident fund?

1 Answer

  • Anonymous
    10 years ago
    Favorite Answer

    Hi Raghav

    As I know

    (a) Unexempted in Provident Fund Scheme means :

    The establishment to whom the Employees’ Provident Fund & Miscellaneous Provisions Act 1952, is made applicable and compliance in respect of their employees are made with the Regional Provident Fund Commissioner, Set-up in respective region, and the returns, claims for settlements, applications for withdrawals are processed through the office of the Regional Provident Fund Commissioner.Such establishments are Unexcemted establishments.

    (b) Exempted in Provident Fund Scheme means :

    Under the Exempted Provident Fund Scheme, the employer forms his own Provident Fund Trust for benefits of his employees. The employer executes the Trust Deed, prepares the Provident Fund Rules and nominates the trustees amongst its employees for administering and managing the Trust. On formation of Provident Fund Trust the employer has to obtain recognition to the Provident Fund Trust from the Commissioner of the Income Tax and thereafter apply to the office of the Regional Provident Fund Commissioner for granting exemption from the Provisions of the Employees’ Provident Fund & Miscellaneous Provisions Act 1952 and the Schemes framed thereunder. Such recognised and exempted Trust is a separate legal arrangement. The employer pays its monthly contributions to the Trustees who are in charge and responsible for day to day management and administration of the trust including that of doing necessary investments as per the pattern laid down in Rule 67 of the Income Tax Rules 1962.


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