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In 1952, the Indian Government introduced a mandatory savings scheme for non-government employees known as Employees’ Provident Funds Scheme (EPFS). In this scheme, employees and their employers are required to make a contribution to the Indian Provident Fund (PF).
The Indian Government also permits employers to establish and manage their own private PF Trusts, subject to conditions prescribed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) and Income-tax Act, 1961.
Recently, the Employees’ Provident Fund Organisation (EPFO) has issued two circulars for securing proper compliance in respect of establishments permitted to run in-house PF Trusts under the EPF Act:
1) Guidelines on the rate of surcharge to be levied on the Board of Trustees of exempted/relaxed establishments under the EPF Act for deviation from the prescribed pattern of investment.
2) Re-auditing of accounts of provident funds maintained by Exempted and Relaxed establishments under the EPF Act.