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Sunday, August 07, 2016

EXEMPTION UNDER SECTION 17(1)(a) OF EPF & MP ACT

Dear all,

Good News for  Exempted Establishment  

 An Internal Circular dated 5.8.2016 issued by the EPFO to its Field Functionaries states that:


  • Section 17 of the EPF & MP Act stipulates that the Appropriate Government may, by Notification in Official Gazette and subject to such conditions as may be specified in the Notification exempt whether prospectively or retrospectively from the operation of all or any provisions of the any Scheme under the Act.

  • The conditions for grant of exemption under Section 17 of the Act have been notified under Notification No. GSR 853(E) dated 29.10.2003 and the revised Guidelines have come into force w.e.f. 10.10.2003.

  • The contribution to the Exempted PF Trust would get exemption from Income Tax provided the Trust is recognised/approved by the Income Tax Authorities.

  • The Regional Provident Fund Commissioners have been insisting on the Employers to submit the recognition/approval of the Trust by the Income Tax Authorities along with the Application for Exemption.

  • The Employees’ Provident Fund Organisation have re-examined the issues and clarified that the Field Functionaries of the Department will not ask the Establishment seeking grant of exemption from the operation of the EPF Scheme, 1952 to furnish copy of Income Tax Recognition Order as  an ‘Essential Document’ to be submitted with the proposal for grant of Exemption. However, immediately after grant of exemption by the Appropriate Government, the Establishment should get recognition from the Income Tax Authorities for its  Trust.
  • Para 8 of the said circular of 2007 is omitted
Circular-2007 Exemption-2007-Circular

Circular of 2016:-Exemption Guidelines-2016