EPFO ON LINE
2. Definition in all labour laws, contribution to Provident Fund is not to be considered as wages/salary; when this is so, taxing on withdrawal tantamount to be the contributions are wages and income. Moreover, it is a retirement benefit, so as a measure of social benefit, tax on withdrawal of PF amount can be dropped.
3. There is no compromise or second thought in remittance of contributions by employer in time. In cases where the employer defaults, PF authorities levy interest and damages - this is a penal action. Over and above, where the employer do not remit, are issued with notice threatening that criminal action will also be initiated - legally it may be correct. But practically, if the employer is put into prison, when he is unable to make the payment even with his presence due to various reasons, how he will be able to mobilise funds to clear the outstanding. This has to be well thought of and delete such provisions in the Act.
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