Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

A Social Security Organisation administering a Provident Fund wishes to invest idle moneys and later write off an irrecoverable contribution. Under the Code, where must the investment and write-off for the Provident Fund be specified?

For a Provident Fund, investment, reinvestment, realisation and writing off of irrecoverable amounts must be specified in the Provident Fund Scheme itself, as provided by the provisos to sections 120 and 121. General government-prescribed conditions or committee orders do not substitute for this.

  1. AIn the Provident Fund SchemeCorrect
  2. BIn the rules framed by the State Government only
  3. CIn an order of the Executive Committee alone
  4. DIn the employer's articles of association

Explanation

Sections 120(2) and 121 each have a proviso: for Provident Fund, Pension Fund or Insurance Fund, investment, reinvestment, realisation and writing off must be specified in the respective Scheme. General conditions prescribed by the appropriate Government do not replace this. An Executive Committee order cannot override the Scheme.

Did you get it right without looking?

One question tells you little. A timed set on The Code on Social Security, 2020 shows your real accuracy, how long you take and where you lose marks.

Practise The Code on Social Security, 2020Free diagnostic mock

More The Code on Social Security, 2020 questions