Recognised provident funds: statutory recognition, conditions and tax treatment govern contributions, transfers and trustee obligations. Recognised provident funds must operate under an irrevocable trust with contributions credited to individual employee accounts, meet specified ... Summary
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Recognised provident funds: statutory recognition, conditions and tax treatment govern contributions, transfers and trustee obligations.
Recognised provident funds must operate under an irrevocable trust with contributions credited to individual employee accounts, meet specified contribution and vesting conditions, and make accumulated balances payable on cessation of employment unless retained under prescribed conditions; recognition is granted or withdrawn by the tax authority subject to rules and transitional provisions. Excess employer contributions and interest above notified rates are taxable in the hands of the employee, employees' contributions are deductible under the relevant deduction provision, trustees must maintain prescribed accounts open to inspection and deduct tax at source where applicable, and transferred balances on recognition are taxed as prescribed.
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