State Railway Provident Fund – Clarification regarding admissibility of interest over and above the threshold limit of Rupees Five lakhs deducted towards SRPF: Railway Board Order RBE No. 58/2024 dated 28.06.2024
Clarification on Admissibility of Interest Over the Threshold Limit for SRPF Deductions
State Railway Provident Fund Rules – RBE No. 58/2024- Key Points:
- Context and Rule Reference: The clarification pertains to interest on amounts exceeding the threshold of Rs. 5 lakhs deducted towards the State Railway Provident Fund (SRPF), referencing rules in the Indian Railway Establishment Code and recent amendments.
- Threshold Limit: Subscription limit under SRPF is capped at Rs. 5 lakhs per financial year, aligning with Income Tax Rules, 1962, per amendments in 2021.
- Previous Instructions: Earlier guidance was issued to manage situations where SRPF subscriptions exceeded Rs. 5 lakhs in the financial year 2022-23.
- Interest on Excess Subscription: For the financial year 2022-23, interest on subscriptions exceeding Rs. 5 lakhs may be paid, subject to applicable income tax, as reviewed by relevant government departments.
- Application to Railways: The clarification on interest payment for excess subscriptions applies to the Railways, ensuring alignment with tax regulations.
RBE No. 58/2024.
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
No.D-43/11/2017-F(E)III
New Delhi, dated: 28.06.2024.
The General Managers/Principal Financial Advisors,
All Zonal Railways/Production Units etc,
DGs of RDSO and NAIR.
Subject:- Clarification regarding admissibility of interest over and above the threshold limit of Rupees Five lakhs deducted towards SRPF.
In terms of the State Railway Provident Fund Rules contained in Chapter 9 of the Indian Railway Establishment Code (IREC) Vol. | (1985-Edition), the amount of subscription in respect of a subscriber shall be 8.1/3% i.e. one-twelfth of the subscriber’s emoluments for that month.
2. Subsequently, Rules 905, 908, 909, and 910 of the Rules ibid have been amended vide Advance Correction Slip (ACS) No.144. As per the said amendment, the sum of the monthly subscription by a subscriber under SRPF during a financial year together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit (at present Five Lakh) referred 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. Further, instructions/clarifications were issued vide Board’s letter No. D- 43/11/2017-F(E)II| dated 16.01.2023 to regulate the cases where the deductions of subscription under SRPF had already crossed or was likely to cross the threshold limit of Rs. 5 Lakh for the financial year 2022-23.
4. With regard to payment of interest on subscription exceeding ceiling of Rs. 5 lakh for financial year 2022-23 deducted towards GPF, the matter was reviewed by Department of Pension and Pensioner’s Welfare (DoP&PW) in consultation with Ministry of Finance and it has been decided that where the amount of total subscription towards GPF in the year 2022-23 has exceeded Rs. 95 lakh, the interest on the excess subscription may be paid, subject to applicable income tax.
5. The aforesaid clarification contained in para 4 above shall also apply on Railways for payment of interest on excess subscription deducted towards SRPF for the financial year 2022-23 subject to applicable income tax.
6. Please acknowledge receipt.
(G. Priya Sudarsani),
Director, Finance (Estt.),
Railway Board.
COMMENTS