1. #1
    Unregistered

    What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    I am fresher and joined in a software company, just got my first month salary and there I found some amount of my salary got deducted for Provident fund. Actually I have no idea about what it is. Can you tell me what does Provident Fund means? Why is that some amount of money get deducted automatically for PF every month? Can you tell for what it is used? Is it possible to stop that deduction of money from my salary?

  2. #2
    Chittaranjan Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Provident fund means a large fund is to be paid by the employer to his/her each employee when goes to retirement .
    An employee can solve his/her future need by availing privident fund from his employer as at the time of retirement.
    This fund is mandatory all confirmed employee creates such fund by way of deducting his salary.

    For above reason and purpose some amount of money is deducted from each employee automatically to form P.F

  3. #3
    prabhu Array
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    Cool Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hi,


    Provident Fund is the main component in salary

    It is formed in the earlier stages of evolution to support a employee financially at the time of retirement

    Even if a man gets Rs.1 Lac salary he will not do savings and spoil the entire money and

    Finally stand alone in the road

    To avoid such problems, govt declared to deduct some part of the salary amount monthly and

    All the deducted amount is Settled at the time of retirement

    Some percentage of the salary is deducted as PF not the entire salary

    PF amount deduction varies for each organisation

    PF amount is non-taxable and mandatory



    Thanks !!!!

  4. #4
    sucraj Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hi,


    1.Provident Fund is the important part in our salary

    2.It is to support a employee financially at the time of retirement and when he too old to work.

    3.In-spite of getting huge amount of salary also we tend to spent everything without any savings.

    fro savings purpose which will be helpful at our old age.government has introduced Some percentage of the salary is deducted as PF not the entire salary

    PF amount is non-taxable and mandatory

    PF amount deduction is not same for all sector and organization.

    It differs for different company.

    Thanks,

  5. #5
    Ashok Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    [FONT=Times New Roman][/FONT] Dear Aspirant,

    Itis compulsory.

    Itis the govt. rule called PF Act to deduct the amount monthly for PF.

    Itis in favour of you for future.

    Thefixed interest is paid yearly on the amount deducted from your salary.

    Youwill have lumps of amount for future.Depending upon the deposited amount withinterest,you will also be entitled to get pension after retirement.

    Youcan get loan many times during your service period on the doposit with interestamount as per PF Act.

    Alsoyou will get rebate in IT as per section 80c of income tax.

    Sonothing to worry.

    Ifyou are in badly need of money,see that minimum amount as per Act is deductedevery month from your salary.


    ~Thanks.~

    [FONT=Times New Roman][/FONT]

  6. #6
    Puru Thaman Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hi,


    :: :: PROVIDENT FUND:: ::



    ::It is the Term of Pension Fund::


    ::It is Employee Beneficiary Fund::


    ::It is also termed as Saving Fund for the Employee which can be Accumulated by him/her during Retirement::


    ::There will be deduction of 12% of Total Salary from every Employee as a PF::


    ::The Organization will add up 12% from his side to the Employee PF::


    ::It is Actually a Post-Relieving Fund to Employee at the Time of Retirement::


    ::It is Compulsory Deduction Fund for every Employee::


    ::The Employee can add this as Tax Beneficial Activities::





    _)(_Thanks_)(_

  7. #7
    geetanjali Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    HI,

    To know the detail about the PF you may go through the link given below-

    http://www.epfindia.nic.in/

    At the time of retirement , you get all these amount back which are deducted as PF.
    It is used to save some money from your salary.

    PF is non-taxable and its deducted from salary for the benifit of the employee only.
    It is compulsory and comes useful when you will require money most.

    HOPE THIS IS HELPFUL!!!!!
    GOOD LUCK!!

  8. #8
    geetanjali Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    HI,

    To know the detail about the PF you may go through the link given below-

    http://www.epfindia.nic.in/

    At the time of retirement , you get all these amount back which are deducted as PF.
    It is used to save some money from your salary.

    PF is non-taxable and its deducted from salary for the benifit of the employee only.
    It is compulsory and comes useful when you will require money most.


    HOPE THIS IS HELPFUL!!!!!
    GOOD LUCK!!

  9. #9
    bsr Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hi,

    It is a mandatory component of salary. To have some amount in savings government decided to deduct % of amount to be deducted monthly.

    It will be payed at the time of retirement. It is non taxable. It varies from company to company. It may be transferable from one company to another when employee transferred.

    Regards,
    bsr

  10. #10
    ritesh Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hi,

    It is a mandatory component of salary. To have some amount in savings government decided to deduct % of amount to be deducted monthly Youwill have lumps of amount for future.Depending upon the deposited amount withinterest,you will also be entitled to get pension after retirement.Youcan get loan many times during your service period on the doposit with interestamount as per PF Act. It is non taxable. It varies from company to company. It may be transferable from one company to another when employee transferred.

    Regards,
    bsr



  11. #11
    looser Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    hi friend,

    It is most common that some amount of your salary is deducted for the provident fund as it is raised by the company for the benefits of the employee.


    PROVIDENT FUND:-

    Provident fund is a fund set up by the employer for the benefit of its employees.

    The object of this fund is to provide a cash lump sum benefit for the employees upon their retirement, or to provide lump sum benefits for the dependents of such members upon death of the employee.


    The benefits that are included in the Provident Fund are:-

    1. Withdrawal Benefits

    This is paid to workers who resign or are dismissed.

    2. Retrenchment Benefits

    Paid to workers who are retrenched.

    3. Retirement Benefits

    This is paid to workers who are retired.

    4. Insured Benefits.

    This is paid to worker who is disabled or dead.

    It is not possible to withdraw your account from the provident fund unless and until you resign to the company my dear friend.

    As it is providing these many benefits nobody would like to withdraw from it.

    So do not withdraw from it as it is going to make your future secure.


    Hope i have helped you in getting relevant information.

    All the best

    Thanking you...



  12. #12
    Boss Array
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    It is a compulsory part of earnings. to possess some quantity in savings government set to deduct maximize quantity to be subtracted monthly you may have lumps of quantity for future.Depending upon the deposited quantity with interest,you will even be entitled to induce pension when retirement.You can get loan repeatedly throughout your service amount on the deposit with interest quantity as per PF Act. it's non subject. It varies from company to company. it's going to be transferable from one company to a different once worker transferred.
    It is a compulsory part of earnings. to possess some quantity in savings government set to deduct maximize quantity to be subtracted monthly.
    it'll be payed at the time of retirement. it's non subject. It varies from company to company. it's going to be transferable from one company to a different once worker transferred.
    Provident fund suggests that an outsized fund is to be paid by the leader to his/her every worker once goes to retirement .
    associate degree worker will solve his/her future want by availing privident fund from his leader as at the time of retirement.
    This fund is obligatory all confirmed worker creates such fund by method of deducting his earnings.

    For on top of reason and purpose some quantity of cash is subtracted from every worker mechanically to make P.F

  13. #13
    G.one Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Provident fund is the fund where certain percentage of your salary will be invested untill your retirement. The introduction of Provident fund is compulsory for every company. The salary which has deducted from your salary, the same amount will also be contributed by your employer. So total amount invested in provident fund is equal to the Your's contribution plus the contribution of your employer. After your retirement total accumulated with certain percentage of interest will be provided to you. It's very benefical for your future which secures and make your old age happy. Investment in the provident fund is compulsory for every employee and it's necessary for the employer to invest the amount in the time in the provident fund.

  14. #14
    Devi.career Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Hello friend,
    Provident fund is the part of saving which get automatic deducted from your salary as per govt policy .and it depends on your salary how much amount will be deducted as provident fund.
    the amount get deducted the same amount also company save for you and when you leave that ob you can get the double.
    suppose every month 1000 is being deducted from your salary and same 1000 is also company saving so at the end of two years when you will leave the job then you will get 48000
    and this provident fund scheme is compulsory and and its refundable and transferable .if you leave one job and join another one then then provident fund account can be transferred to that company,.
    this scheme is to secure the future of employee as govt is been removing pension scheme from all Jobs gradually.
    thank You.

  15. #15
    ealp Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Provident Fund the term is very popular among the employees of pvt/public/govt.sectors.This is not new introduction this is the large fund is available at the time of superannuation individually for future safety at the time of old age.There are strong points behind this PF

    So friend Provident Fund is created by the employee/employer unitedly a minimum amount of basic salary say @10% is deducted from salary and same amount is given by the employer every month thus gradually fund is going to be increases for employees' future purposes ie he/she can utilise this fund for the purpose of marrige/higher study/buying of flat etc after retirement,without this many of the employee will die with starvation if such provision is not created timely.So CPF is formed with employees fund+employers'fund+interest=contributory provident fund.Where as in govt.sector employees deduction+ interests create fund it is also called Provident Fund, it is mandatory nobody can not deny must participate toward the fund.

    So,PF for employees future purpose and this immense fund unitedly handel the PF board trust for the development of country as well as employee.

    Thank you.

  16. #16
    you@ Array
    Join Date
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    Re: What does Provident Fund means? Why some amount of money gets deducted automatically for Provident Fund every month?

    Quote Originally Posted by Unregistered View Post
    I am fresher and joined in a software company, just got my first month salary and there I found some amount of my salary got deducted for Provident fund. Actually I have no idea about what it is. Can you tell me what does Provident Fund means? Why is that some amount of money get deducted automatically for PF every month? Can you tell for what it is used? Is it possible to stop that deduction of money from my salary?
    Hello Friend..........


    .............Provident Fund is the important part in our salary.It is to support a employee financially at the time of retirement and when he too

    old to work.In-spite of getting huge amount of salary also we tend to spent everything without any savings.fro savings purpose which will be

    helpful at our old age.government has introduced Some percentage of the salary is deducted as PF not the entire salaryPF amount is

    non-taxable and mandatory.PF amount deduction is not same for all sector and organization.It differs for different company.


    ....Best of Luck....

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