Can my company hold back my PF?

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I had donated Rs 5,500 online to the Prime Minister's Relief Fund in January through Sify. But my bank statement reflected it as a purchase from Sify.

When I contacted Sify via mail they told I would be getting the receipt from the Government of India directly at the end of financial year.

My office refused to take the purchase order for the IT rebate. How do I claim my IT rebate in case I do not get a receipt before filing my returns?

- Sharath

The maximum timeline that you could allow yourself to receive the receipt is July 31, 2005.

This is the last date for the filing of income tax return by salaried individuals.

You would be need to attach the original receipt along with the return.

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I work in an Indian MNC and keep going abroad on assignments.

My tax is deducted at source by my employer. I don't pay any tax on my overseas allowance.

What is the tax implication when I transfer money (out of my overseas allowance) from my bank account outside India to my account in India?

- Lakshmi Chandran Jayakumar

The allowance that you don't spend would be taxable on being declared in India.

Beware of expensive gifts. You may be taxed!

I was working in an Indian software company for about six years. I left the company while I was working in the US.

In the past, the company has not given the Provident Fund money to employees who left the company while they were in US.

Can the company legally withhold the PF amount from their ex-employees?

- Bhalendra Bisht

In your case, you will need to verify if you have completed the entire employment termination process with your previous employer.

The reason for PF dues not being released may be that you have not completed your side of the obligation to your employer, thus forcing them to withhold the dues.

Technically, your previous employer cannot retain the PF fund. But your employment contract may contain terms that would entitle them to withhold PF dues if the termination formalities are not completed.

All about Form 16

What percentage of the Voluntary Provident Fund can be deducted from one's salary? Is there a limit?

Just for the record, my company does not deposit this money with the government but with a company trust fund.

- Bindu

Being voluntary in nature, the only contribution that may go in is the employee contribution. Hence, the employee may invest as much as h/she wants to invest without any cap on the same.

You will need to ascertain if the trust is an approved one. If yes, then it would have to be a recognised fund and taxability would remain the same as RPFC.

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Note: Questions may be edited for brevity. Due to the tremendous response, all queries will not be answered.

Illustration: Dominic Xavier