Every month the EPF deductions should be deposited by the company into the employees PF account. PF money should be credited within 15 days of payment of salary. But many companies fail to credit PF money. If any employee does not realize that their company is neglecting to make PF contributions, they can also file a complaint with EPFO. After receiving the complaint the governing authority of this retirement fund will take up the inquiry against the company. In this investigation.. If it is found that companies are deducting the EPFO amount from the salary of employees and not depositing it.. this governing body will take legal action.
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EPFO will levy interest on companies for late deposits of EPF deductions. Also, according to the EPF Act, if the deducted money is not deposited in the provident fund account, the companies will also be fined. EPFO has the right to file a complaint against the company under Sections 406 and 409 of the Indian Penal Code (IPC).
EPFO also gives them an opportunity to make their case heard before action is taken against the company. As per current tax laws..If deposits are not made on time in PF accounts..they cannot claim tax benefits on EPF contributions.
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