Rule 294: Accounts of a recognised provident fund and Form No. 185
Rule 294 sets the accounting duties for a provident fund. Accounts are prepared at intervals of not more than twelve months; each subscriber's account contains the particulars in Part A of Form No. 185; an abstract of each employee's account is sent to the Assessing Officer in Part B of Form No. 185 by 15 June; and each member gets an annual statement. Rules 292 to 300 deal with recognised provident funds under Part A of Schedule XI to the Act.
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Bare law
Rule 294 - Accounts
(1) The accounts of a provident fund shall be prepared at intervals of not more than twelve months.
(2) An account shall be maintained for each subscriber to the fund and it shall include the particulars shown in Part-A of Form No. 185.
(3) Where the accounts of a provident fund are kept outside India, certified copies of the accounts shall be supplied not later than the 15th June in each year or any other subsequent date fixed by the Assessing Officer to a local representative of the employer in India.
(4) An abstract of the individual account for the tax year of each employee participating in a provident fund shall be furnished by the trustees in Part-B of Form No. 185–
(a) to the Assessing Officer of the area in which the accounts of the fund are kept, or if the accounts are kept outside India, to the Assessing Officer of the area in which the local headquarters of the employer are situated; and
(b) by the 15th June in each year or any other subsequent date fixed by the Assessing Officer.
(5) The account to be made under the provisions of paragraph 11(1) of Part A of Schedule XI to the Act shall show in respect of each employee,–
(a) the total salary paid to the employee during the period of his participation in the provident fund;
(b) the total contributions;
(c) the total interest which has accrued thereon; and
(d) so far as may be, the percentage of the salary of the employee in accordance with which contributions have been made by the employer and employee.
(6) Every employer shall, as soon as possible, after the close of each financial year, send to each member, a statement of his account in the fund showing the following details:
(a) opening balance at the beginning of the period;
(b) amount contributed during the year;
(c) the total amount of interest credited at the end of the period or debited in the period; and
(d) the closing balance at the end of the period.
Rule breakdown
Fund accounts: Rule 294(1) to (3)
Prepared at intervals of not more than twelve months.
Individual account for each subscriber with the particulars in Part A of Form No. 185.
If kept outside India, certified copies go to the employer's local representative in India by 15 June (or a later date fixed by the Assessing Officer).
Abstract to the Assessing Officer: Rule 294(4)
Part B of Form No. 185 for each employee.
To the Assessing Officer of the area where accounts are kept, or where the employer's local headquarters is if accounts are kept outside India.
By 15 June each year or a later date fixed by the Assessing Officer.
Content and member statement: Rule 294(5) and (6)
Account under paragraph 11(1) of Part A of Schedule XI shows total salary, contributions, interest and contribution percentages.
Employer sends each member an annual statement with opening balance, contributions, interest and closing balance.
Key takeaways
Twelve months
Accounts at intervals of not more than twelve months.
15 June
Part B abstract to the Assessing Officer.
Member statement
Annual statement to each member.
Practical checklist
- Calendar the 15 June deadline.
- Send member statements soon after year-end.
Avoid
- Do not omit the contribution percentage details required by Rule 294(5).
FAQs
How often must PF accounts be prepared?
At intervals of not more than twelve months (Rule 294(1)).
When is the Form No. 185 Part B abstract due?
By 15 June each year or a later date fixed by the Assessing Officer (Rule 294(4)(b)).
What does the member statement show?
Opening balance, contributions in the year, interest credited or debited, and closing balance (Rule 294(6)).
Glossary
- Form No. 185
- Part A: member account particulars; Part B: abstract to the Assessing Officer.
- Abstract
- Summary of each employee's account for the tax year.