RBE No.15/2023 Provident Fund – Annual Ceiling

No.D-43/11/2017-F(E)III,

Dated 16.01.2023

Sub: Ceiling of Rs.5 Lakhs on subscription to State Railway Provident Fund in a Financial Year – instructions reg.

1. In terms of the State Railway Provident Fund Rules contained in Chapter 9 of the Indian Railway Establishment Code (IREC), Vol-I (1985-Edition), the amount of subscription in respect of a subscriber shall be 8-1/3% of the emoluments and not more than total emoluments of the subscriber.

2. Rule 905, 908, 909, and 910 of the Rules ibid have been amended vide, Advance Correction Slip (ACS) No.144 (RBE No.14/2023).

As per the said amendment, the sum of the monthly subscription by a subscriber under SR Provident Fund during a financial year together with the amount of arrears subscriptions deposited in that financial year shall not exceed the threshold limit (at present Five Lakh) referred to in sub clause (i) of the clause (c) of the Explanation below sub rule (2) of rule 9D of the Income Tax Rules, 1962 [as inserted vide Notification No. G.S.R. 604(E), dated 31.08.2021 of Ministry of Finance, Department of Revenue (Central Board of Direct Taxes)].

3. As per the amendment, the annual subscription of a subscriber in a financial year shall not exceed Rs. Five Lakh. However, keeping in view that it is already the last quarter of Financial Year 2022-2023, there may be cases where the threshold limit might have already been crossed or is likely to exceed Rs.5 lakh even with minimum subscription of 8-1/3% and there might be difficulty in implementation of the said amendment.

4. Keeping in view of the difficulties mentioned in para 3 above, following clarifications are issued for guidance:-

(a) In case of those Railway servants, whose SR Provident Fund subscription during the current financial year (i.e. 2022-2023) has already exceeded the threshold limit of Rs.5 lakhs, no further deductions of SR Provident Fund subscription may be made from their salary in the current financial year.

In those cases, the provision regarding minimum monthly subscription of 8-1/3% of the emoluments shall be deemed to have been relaxed.

(b) In case of those Railway servants, whose SR Provident Fund subscription during the current financial year (i.e. 2022-2023) has not yet reached/ exceeded the threshold limit of Rs.5 Lakh, further deductions towards SR Provident Fund subscriptions during financial year may be phased out in such a manner that the total subscription during the current financial year does not exceed Rs.5 Lakh.

In cases where the total contribution is likely to exceed Rs.5 Lakh even with minimum monthly subscription of 8-1/3% of the emoluments, deduction of the SRPF subscription from the salary may be stopped as soon as the total contribution in the current financial year reaches Rs.5 Lakh. In such cases also, the provision regarding minimum monthly subscription of 8-1/3% of the emoluments shall be deemed to have been relaxed.