What is Provident Fund ?

Today, we will be discuss about Provident funds, its uses, benefits, their need in our life. The knowledge of provident funds is beneficial for our future and also secure our future.

Provident Funds and Miscellaneous Provisions Act 1952 introduced on 4 March 1952. Provident fund is one of the beneficial schemes for the elders.The employee must contribute the small amount of his salary and employer contribute on the behalf of the employee. It is compulsory to register in EPFO for all companies who have more than 20 employees. This fund is maintained and overseen by the Employee Provident Fund Organisation of India.

It is a type of saving,in which an employee save a small part of his salary every month that can be used in the event when an employee not in the condition to do work or after retirement.

When you start working,you and your employer contribute 12% of your basic salary into your PF account. PF is active every time when you receive your salary. If employee change his job employee should update his EPF information i.e his UAN(Universal Account Number) with his new company so that they can continue the contribution.UAN (Universal Account Number) was started in October 2014. The 12-digit UAN is very helpful for tracking of the EPF account details. The interest is decided by the government and central board of trustees is paid on the amount to the credit of the employee as on 1st April every year. Employee contribution made monthly but the interest is calculated yearly. There is a tax benefit i.e the employer contribution to employee EPF is tax-free and employee contribution is tax deduction under Section 80C of Income Tax act.

So, these are some conceptual details about provident funds and also their benefits that are helpful for our future. HR training in Chandigarh work out on all accounting concepts which is used in human resource management. You can learn all these stuff by taking HR Training in Chandigarh. To do HR Training CBitss Technologies is the best training company which helps to understand all the concepts through its practical based training program. this will help you to understand things practically which will help you to get more jobs in industry.

CBitss is a venture of Sukrala IT services Pvt.  Ltd. which is an ISO certified company,established in 2002.Its head office in Chandigarh and its branches are in Himachal and Jammu. CBitss is the place where we learn about HR, Finance, marketing and management courses.  CBitss technologies is the best HR training institute in Chandigarh.

For more informtion you can contact @ 9988741983 or you can visit the official website www.cbitss.co.in