Skip to content

CS Professional · Labour Laws and Practice · Social Security Legislations

A Social Security Organisation managing a Provident Fund finds that certain contribution and damages dues from a defunct establishment are irrecoverable. It proposes to write off the amount. Under the Code on Social Security, 2020, how must the write-off be dealt with?

The organisation may write off irrecoverable contribution, cess, interest and damages subject to conditions prescribed by the appropriate Government, and for a Provident Fund, Pension Fund or Insurance Fund the write-off must be specified in the relevant scheme. It cannot act unilaterally without such conditions.

  1. AConditions prescribed by the appropriate Government apply, and for a Provident Fund the write-off must be specified in the Provident Fund SchemeCorrect
  2. BIt is governed only by a resolution of the establishment's employees
  3. CIt needs no conditions since the organisation owns the fund
  4. DIt is permitted only for cess and never for contribution, interest or damages

Explanation

Section 121 permits writing off irrecoverable contribution, cess, interest and damages subject to conditions prescribed by the appropriate Government. The proviso says that for a Provident Fund, Pension Fund or Insurance Fund, the write-off must be specified in the respective Scheme. Option D wrongly narrows the amounts covered.

Did you get it right without looking?

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

Practise Social Security LegislationsFree diagnostic mock

More Social Security Legislations questions