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2. What are the different types of Provident Fund ?

On the basis of coverage Provident Fund can be largely divided into two kinds:-

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Statutory Provident Fund - For all industries employing 20 or more persons engaged in any industry specified in Schedule - I attached to the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 or for all Establishments or classes of Establish- ments to which the said Act has specifically been made applicable by the Central Government by issue of notification in Gazette of India, such Provident Fund is compulsory for employees drawing salaries (Basic + DA) of upto Rs. 6500/- pm.

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Voluntary Provident Fund - For all other Industries/Establishments and for all employees drawing salaries of above Rs. 6500/-/- employed in Industry/Establishment in which such PF is compulsory, the Provident Fund is voluntary and the benefit of provident fund can be extended by setting up a private PF Trust and by getting the same recognized under Income tax Act, 1961 or by getting the Establishment/ employees covered under the EPF & MP Act, 1952 /EPF Scheme, 1952 on voluntary basis.

Besides the above two categories, there are various types of Provident Funds listed as under:-

•	Recognized Provident Fund (RPF) - It is a fund to which the Commissioner of Income-tax has given the recognition as required under the Income-tax Act.
•	Unrecognized Provident Fund (URPF) - It is the Provident Fund, which is not recognized by the Commissioner of Income-tax. The employee and employer both contribute towards this fund. The employee's contribution to URPF is not treated as deductible expenditure.
•	Public Provident Fund (PPF) - Self-employed people (doctors, lawyers, accountants, actors, traders, pensioners) can also enjoy the benefit of tax rebate under section 88 by contribution to PPF.

3. What are the various types of Establishments ?

Even in Factories/Establishments where PF. is compulsory, such Factories/ Establishment have two options - one to comply with the statutory scheme i.e. Employees Provident Fund Scheme, 1952 and another to set up their own PF Trust, get it recognized by the Income Tax authorities and to seek exemption from RPFC/appropriate Govt. to run its own Trust subject to such conditions as may be imposed by them. The former is called unexempted establishments; the later exempted ones.

4. To whom does the EPF & MP Act, 1952 applies ?

The said Act applies to:

i) All Factories engaged in any industry as specified in Schedule I attached to the said Act or to all Establishments falling in classes of establishments to which the said Act has specifically been made applicable by the Central Government by issue of a notification in Gazette of India ii) In which 20 or more persons including persons employed by or through a contractor are employed.

5. What is the procedure for withdrawal of PF ? 

A member of the PF can withdraw the full amount on retirement from service after attaining the age of 55. The full amount can also be withdrawn if:

1. A member who has not attained the age of 55 at the time of termination or resignation from the service. 2. Member is retired on account of permanent and total disablement due to bodily or mental infirmity. 3. On migration from India for permanent settlement or employment abroad. 4. In case of mass or individual retrenchment.

A member can withdraw up to 90% of the amount of PF after attaining the age of 54 years or within one year before actual retirement, whichever, is later.

A member of provident fund can avail nonrefundable advance for the following purposes:

1. For acquiring or construction of immovable property or for repayment of loans taken from specified agencies for the said purpose. 2. Advances in special cases such as lock out in factory/establishment. 3. For treatment of illness.  4. For marriages or post matriculation education of children. 5. Financing of member's life insurance policy. 6. Where moveable/immovable property gets damaged by a calamity of exceptional nature or accident. 7. For purchase of an equipment required to minimize the hardships on account of handicap.

Advances/loans for building/ purchase of flat or house site/ educational purposes requires a minimum completion of 5 years and 7 years of membership of the fund. In other cases there is no requirement of any membership but grant of loans in such cases is subject to some conditions specified in the scheme.

6. What are the various Schemes set up under the EPF & MP Act, 1952 ?

There are three such Schemes as shown below:

i) The Employees' Provident Fund Scheme, 1952 which had come into force from 01.11.1952 ii) The Employees' Family Pension Scheme, 1971, which had come into force from 01.03.1971. This Scheme has now been replaced by Employees Pension Scheme, 1995 w.e.f. 16.11.1995. iii) The Employees' Deposit Linked Insurance Scheme, 1976 which had come into force from 01.08.1976.

7. What are the duties of the employers under the above-mentioned schemes ?
  

1.	To deposit contributions under the above mentioned three schemes in any branch of State Bank of India for credit to respective accounts maintained with them within 15 days (with 5 days of grace) of the close of every month as below:
	a.	PF contribution @ 15.67% (12% employees' share + 3.67% out of employer's share) of pay (Basic + DA) of the member under the EPF Scheme, 1952 along with administrative charges @ 1.10% of pay of all the members.
	b.	Pension contribution @ 8.33% of pay (Basic + DA) of the member from and out of employer's share of contribution subject to a maximum of his pay up to Rs. 6500/- under the EPS 1995.
	c.	EDLI contributions @ 0.5% of pay (Basic + DA) of the member subject to a maximum of his pay of up to Rs. 6500/-/- under the EDLI Scheme, 1976 along with administrative charges @ 0.01% of pay of all the members.
2.	To submit various returns as prescribed in the above mentioned schemes within the period stipulated therein i.e. within 25 days of close of every month in the case of monthly returns and within 30 days of the close of the year in the case of annual return.
3.	To assist the Department in settlement of PF claims of the outgoing members and in grant of advances for the specified purposes to the existing members.

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