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Type of PF Loans

1.Refundable
2.Non-Refundable

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Refundable/Temporary Loans

Purpose of Eligibility Conditions


Loans
Marriage for 12 months Basic+DA or
self,brother, EC+VC whichever is less
daughter,so repayable in not more than
n, 60 equally monthly
installments.
sister.
Invitation card to be
attached with the
application.
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Education for 12 months Basic+DA or
dependent EC+VC whichever is less
children repayable in not more than
60 equally monthly
installments.
Schedule of fees and
admission letter from the
institute is to be enclosed
along with the application.

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Additions 12 months Basic+DA or EC+VC
or whichever is less repayable in
substanti not more than 60 equally
al monthly installments.
alteration A member has to complete 10
s or years of membership who has
improve availed HBA from the
m- corporation and 5 years
ents to membership who has not
the availed HBA from the
dwelling corporation.
house Estimate of the
repair/renovation expenses to
be enclosed with the 4
Obligatory Rs. 20,000/- or 5 months
expenses Basic+DA or EC+VC whichever
in is less repayable in not more
connectio than 30 equal monthly
n with any installments.
religious
ceremony
by
customar
y usage

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Natural Not exceeding Rs.15000/-
calamities like or 50% of EC+VC
flood, whichever is less
earthquake. repayable in not more
than 24 equal monthly
installments.

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Loans for Rs.100,000 or 5 months Basic
visiting pay plus DA or 50% of EC+VC
abroad whichever is less repayable in
not more than 50 equal
installments.
Copy of valid visa for the
country to be visited to be
enclosed along with
application.Employee will be
required to take minimum 5
days leave.

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Non refundable loan

Purpose of Admissible Amount


loan
For 36 months Basic+DA or 90%
purchase of of EC+VC+CC with interest
a site for thereon or actual cost of site
constructio whichever is less. A member
n of house has to complete 5 years
membership of the fund.

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For acquisition 36 months Basic+DA or
of ready built 90% of EC+VC+CC with
house/flat or for interest thereon or actual
purchasing site cost of construction
and whichever is less. A
construction of member has to complete
a house 5 years of membership of
thereon the fund.

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Additions 12 months Basic+DA or
alterations/m EC+VC with interest
odifications/i thereon whichever is
mprovements less.After 5 years of
to the completion of house.
dwelling
house owned 12 months Basic+DA or
by the EC+VC with interest
member thereon whichever is
less.After 10 years of
completion of house.

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Son, 12 months Basic+DA or
Daughters 50% of EC+VC including
marriage interest thereon whichever
is less.

For higher 12 months Basic+DA or


education 50% of EC+VC including
(professional interest thereon whichever
course) for is less.
dependent
children)

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F.S. Advance Up to 90% of EC+VC+CC
with interest thereon.One
year prior to
superannuation

For 36 months Basic+DA or


repayment of 90% of EC+VC+CC with
housing loan interest thereon or actual
taken from loan outstanding whichever
banks/financi is less.The payment will be
al institution made directly to the party.

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Dependent 6 months Basic+DA or
members EC+VC, whichever is less.
illness

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FAQ :

Q-1 For how many daughters or sons


marriage loan can be taken ?
Ans.There is no numbers defined.

Q-2 Can loan be given to purchase


agriculture land ?
Ans.No

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Q-3 What is the period after which
we can take loan for house
repair after purchasing it ?
Ans.5 Years

Q-4 Is there any defined criteria for


higher education ?
Ans.Yes,Post matriculation

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Q-5 We are making payment to whom,
directly
party or employee ?
Ans.In case of repayment of loan to
bank,the
payment is made, in all other cases
payment
is made to the employee.

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Q-6 In case of absence of marriage card, is
it
possible to give loan ?
Ans.No,however if the trustees certify that
the
marriage is genuine, then loan can be
given.

Q-7 In case of application for non


refundable
loan, the property should be in whose
name?
Ans.Property must be in the name of the 17
Q-8 Which documents are required in case
of
loan taken for purchasing and
repairing of
house ?
Ans. For purchasing of new house there
must be
allotment letter on letter head of
Builder
and token money receipt.In case of
resale
of property there must be token
money 18
Q-9 In case of death of employee if there
is no
nomination then which document is
required ?
Ans.Legal succession certificate.

Q-10 When can we start V.C.?


Ans. Since inception of service.

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Q-11 Can we deposit lump sum amount in
VPF ?
Ans. We can deposit lump sum amount in
VPF
as and when approved by trustees.

Q-12 Can we refund partly loan amount ?


Ans. No, partly refund is not allowed but
full
refund is allowed.

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Q-13 Can I take an other refundable loan,
while
there is another one pending ?
Ans. No.First we have to repay the existing
loan
in full.

Q-14 What are reasons for separation?


Ans.
Retirement,Death,resignation,Termination
and VRS.

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Q-15 What are the documents required for
settling the PF dues of resigned
employee ?
Ans. 1.Inter office memo 2.Request letter
by
employee 3.Service particulars
4.Advance
receipt 5.Form 15G or PAN No.
6.Declaration of non-employment.

Q-16 Can PF Trust money be attached with


other dues ?
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Ans. No
Q-17 What is R-2 option in case of
deceased
employee ?
Ans. In R-2 option,Deceased employees
legal
heir get Basic+DA up to notional
date of retirement but no interest is
paid
on EPF balance.VPF is paid
immediately.

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Q-18 If there are more than one nominee and if
any nominee claims for his share only,
then what is procedure, what PF rules say ?
Ans. We require following documents from
nominee to claim his share:
1. Death Certificate 2. Affidavit
3. Legal succession certificate 4. Form 15G
or PAN no.
The balance of remaining nominee will
continue to remain with the trust till such
time application is received for settlement.

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Q-19 For how many years we can keep PF
amount after retirement ?
Ans. We have to pay VPF immediately and
we
can keep CPF & EPF up to 8 years.

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Q-20 Which permanent withdrawal an employee
can refund ?
Ans. An employee can refund permanent
withdrawal taken for the following
purposes :
1. For purchase of a site for construction of
house
2. For acquisition of ready built house/flat
or for purchasing site and construction of a

house thereon
3.
Addition/alterations/modifications/improvements
to the dwelling house owned by the
member. 26
Q-21 When is interest credited and how it
is
calculated ?
Ans. Interest on opening balance for full
years
credited for continuing members on
31st
March every year.
Interest on monthly contribution is
given
from first day of the month
succeeding the
month of credit. 27
Q-22 When we pay interest in final
settlement,
what is basis month to month or day
to day
basis ?
Ans.Interest on settlement during the
month is
paid till last month.
Interest to those retiring during the
month is
paid till the month of retirement.
It is month to month basis. 28
Q-23 Related sections and taxability under
IT Act ?
Ans. As per section 17(1) of IT
Act,1961,Employers
contribution more than 12% is taxable for
employee as well as interest given on PF
amount
more than 8.5% is also taxable for employee.
When a employee resigns before completing
5 year
of service and withdraw his PF amount then
we
deduct TDS @30.90% and if service of period
is
more than 5 years then we deduct TDS @ 29
Q-24 What is procedure for Final settlement ?
Ans. 1.We get related documents from HRD of
concerned region of employees.
2.Then we check and enter it in Entry
register.
3.update master in system.
4.Cross check amount with Sadashiv Sir and
save
amount in system.
5.Then we send amount after making entry in
SAP
by F-43 command.
6.Send the document no. generated by SAP
by mail
in lotus. 30
Q-25 Whether payments to employees are
made
from bank a\c of the trust or IOC ?
Ans. IOC

Q-26 By which date we have to pay


monthly
contribution to Trust ?
Ans. We have to pay it within 15 days of
close of
month.

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Q-27 What is interest rate on refundable
loan,what is statutory rate of interest
for
PF ?
Ans. Interest rate on refundable loan is
1%
above of statutory rate for interest on
PF
amount.
Statutory rate of interest for Pf is the
rate
which is declared by Govt.12% 32
Q-28 What is statutory rate for
contribution,
what are provisions of IT Act on it ?

Ans. Employees contribution :


12% of basic wages inclusive of DA
and
retaining allowances (if any)
including cash
value of food concession.
Employees contribution :
Equal to that of employer or more if
he 33
Q-29 Which investment pattern we
follow,ministry of labour or ministry
of
finance ?
Ans. Ministry of Labour.

Q-30 How many trustees we have, what is


constitution ?
Ans. There are 10 trustee in the trust.5
from
management and 5 from collectives.

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Q-31 What is periodicity of trust meeting ?
Ans. Every quarter as per rules of PF Act.

Q-32 What is time period of inspection by


PF
Authority ?
Ans. Period is previous financial year for
which PF Authority can conduct
inspection.

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Q-33 who bears the expenses of trust ?
Ans. Employer bears the expenses of
trust.

Q-34 What is quorum for meeting and


what is
time period for which we have to
send
agenda of meeting ?
Ans. Quorum for meeting is 2/3 of total
trustee.The agenda must be sent in
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Q-35 Are contract labors covered under
trust ?
Ans. No
Q-36 What is transfer in, up to which
period we
give interest to transfer in ?
Ans. When employee of other divisions
I.e.
Refinery, Research & Development,
Pipeline and AOD transfer and join
our
division that is called transfer in.We 37
Q-37 What is role of each party in case of
transfer of PF from one employer to
other,
what is the procedure ?
Ans. An employee can ask his new
employer to
get transfer of his previous PF A\C
from
previous employer.The present
employer
sends a letter on its letterhead
requesting
to transfer employees PF A\C to 38
to concerned Regional PF
commissioner or
PF trust of company if it has its own.
Annexure K is also sent to employee
regarding this information.

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