Fixation of Ceiling on Subscription in Provident Fund

GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
GROUP-‘J’
Writers’ Buildings
BLOCK-‘G’, 1st FLOOR KOLKATA – 700001.

Memo No: 135-F(J)W.B. Date: 19.11.2024

MEMORANDUM

Sub:- Fixation of ceiling of Rs. 5 lakh on subscription in Provident Fund of the Non-Govt, Educational Institutions, Local Authorities and other institutions maintaining PF in PF Deposit Accounts in treasuries/ PAOs under the Major Head of Account “8336-Civil Deposits” in a financial year.

Consequent upon Finance Department’s Memo No. 027-F(J) dated 04.05.2023read with Memo No. 032-F (J) W.B. dated 28.03.2024, the undersigned is directed by the order of the Governor and to say that in case of Provident Fund of The West Bengal Non-Government Educational Institutions And Local Authorities (Control Of Provident Fund Of Employees) Act, 1983, there was no ceiling on the total amount of subscription of a subscriber into his/her PF account in a particular financial year.

2. The undersigned is also directed to say that the sum of the monthly subscription by a subscriber under the GPF during a financial year shall not exceed the threshold limit (at present Rupees Five Lakh) following the instructions as laid down in the orders F. No. 3/6/2021-P&PW(F) dated 11.10.2022 & F.No. 3/13/2022-P&PW(F)(8353) dated 02.11.2022of Govt. of India, Ministry of Personnel, PG & Pensions, Department of Pension & Pensioners’ Welfare.

3. The undersigned is further directed to say that the sum of the monthly subscription by a subscriber under the GPF during a financial year together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit (at present Rs. Five lakh) referred to in sub clause (i) of clause (c) of the Explanation below sub rule (2) of the 9D of the Income Tax Rules, 1962 as inserted vide Notification No. G.S.R 604 (E) dated, 31.08.2021 of Ministry of Finance, Department of Revenue (Central Board of Direct Taxes).

4. Therefore, keeping in view the above and the difficulties being faced by Non-Govt. Educational Institutions, Local Authorities and other institutions maintaining PF in PF Deposit Accounts in treasuries/PAOs under the Major Head of Account “8336-Civil Deposits” owing to limiting the maximum annual PF subscription the matter has been examined and the following instructions are issued in this regard:

a. In the case of those subscribers whose PF subscription during the financial year 2024-25 has already exceeded the threshold limit of Rs. 5 lakhs, no further deduction of PF subscription may be made from their salary in the current financial year (2024-25). In those cases, the provision regarding minimum monthly subscription as prescribed shall be deemed to have been relaxed.

b. In the case of those subscribers, whose PF subscription during the current financial year 2024-25 and onwards has not yet reached/ exceeded the threshold limit of Rs. 5 lakh, further deductions towards PF subscriptions during the current financial year may be phased out in such a manner that the total subscription during the current financial year does not exceed Rs. 5 lakh. In cases where the total contribution is likely to exceed Rs. 5 lakh even with minimum monthly subscription as prescribed, deduction of PF subscription from the salary may be stopped as soon as the total contribution in the same financial year reaches Rs. 5 lakh. In such cases also, the provision regarding minimum monthly subscription as prescribed shall be deemed to have been relaxed.

5. In view of the above and with a view to avoiding any anomalies arisen in future, the undersigned is directed to say that

a. For the current financial year (from 2024-25 and onwards), monthly PF subscription should strictly be regulated in such a manner so that the total sum of subscription in a financial year does not exceed the limit of Rs. 5 lakh.

b. The Officers/ Officials should be directed to revise their contribution accordingly.

c. In case the employees do not revise their contributions, the respective DDOs must regulate the subscription so that the threshold limit of Rs. 5 Lakh is not exceeded in a financial year.

6. All Non-Govt. Educational Institutions, Local Authorities and other institutions maintaining PF in PF Deposit Accounts in treasuries/ PAOs under the Major Head of Account “8336-Civil Deposits” are requested to bring the above instructions to the notice of all concerned for compliance.

7. This issues with the approval of the competent authority of this Department.

Additional Secretary
to the Government of West Bengal