Provident Fund
How to start your own P.F.Trust
Setting up of your own Trust: To set up your own trust, you should have at least 100 employees. Then you have to apply to RPF Commissioner. The commissioner may grant you permission if: • there are more than 99 employees in your organisation. • the rate of contributions provided in the Trust is at least equal to the PF Act • Employees will get at least a s much benefits as under the PF Act • The benefits will be mainly provident fund, pension or gratuity. You will also need to get the PF Trust approved under the Income tax Act. Both these procedures can be time consuming. Lengthy and tiring. NGOs with weak hearts should consult their doctors before setting up a PF trust. How to Run the Trust • Provisions of the Act remain applicable to the trust • The PF Dept may lay down addl. Conditions • You have to establish a board of trustees for the provident fund • Terms and conditions of service of members of the Board of Trustees should be clear • Detailed accounts for each employees PF should be kept • Various returns , including income and exp account and balance Sheets have to be filed regularly • Trust accounts have to be audited each year • PF money can be invested only according t Govt. rules • Admin. Exp of the trust have to be borne by the NGO.
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