Provident Funds Act, 1925 Quiz
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Questions and Answers

What is the effect of making a payment authorized by sub-section (1) on the Government's liabilities?

  • It fully discharges the Government from liability for the amount paid. (correct)
  • It increases the liability of the Government.
  • It partially discharges the Government from liability.
  • It has no effect on the Government's liability.

    • Under what condition does a nomination become invalid?

  • The nominee passes away before the subscriber. (correct)
  • The subscriber revokes it in writing.
  • It fails to comply with legal requirements.
  • A new valid nomination is made by the subscriber. (correct)

    • Who becomes entitled to receive the sum upon the subscriber's death, assuming a valid nomination exists?

  • Any relative of the subscriber.
  • The person specified in the nomination. (correct)
  • The Government or Railway administration.
  • The estate of the subscriber.

    • What happens if the subscriber or depositor makes a new nomination?

    <p>The new nomination cancels all previous nominations.</p> Signup and view all the answers

    What is the consequence when a person nominated predeceases the subscriber?

    <p>The nomination becomes void and ineffective.</p> Signup and view all the answers

    How does the Indian Succession Act, 1925 interact with the rights of a nominee?

    <p>It does not affect the rights of persons entitled under a valid nomination.</p> Signup and view all the answers

    If a nomination has provision for another person in case of the nominee's death, what happens upon that death?

    <p>The right passes to the newly designated person.</p> Signup and view all the answers

    What is the maximum period that rules made by the Central Government must be laid before each House of Parliament?

    <p>Thirty days</p> Signup and view all the answers

    Under what condition can a rule made by the Central Government be modified or annulled?

    <p>If both Houses agree in making modifications</p> Signup and view all the answers

    What protection is offered to persons performing acts under this Act?

    <p>They will not face legal action if the acts are done in good faith</p> Signup and view all the answers

    To which Provident Funds can the Act's provisions apply according to the content?

    <p>Any Provident Fund established by local authorities or specified institutions</p> Signup and view all the answers

    What authority does the appropriate Government have regarding the addition of public institutions to the schedule?

    <p>They can add institutions at their discretion via Official Gazette notification</p> Signup and view all the answers

    What is the meaning of 'Government contribution' as defined in the context?

    <p>Contributions made by the Central, State Government, or local authority after 1975.</p> Signup and view all the answers

    What does 'prescribed' mean in this context?

    <p>Defined by rules made by the Central Government via an official notification.</p> Signup and view all the answers

    Under what condition can a Central Government officer access government contributions after retirement?

    <p>After obtaining prior permission from the Central Government if engaged in commercial employment within two years.</p> Signup and view all the answers

    What happens if a Central Government officer takes up commercial employment without prior permission?

    <p>He or she will forfeit the government contributions.</p> Signup and view all the answers

    What is meant by 'date of retirement' for an officer re-employed in government service?

    <p>The date he or she ceases re-employment in any government capacity.</p> Signup and view all the answers

    What is required for a Central Government officer to take up commercial employment during leave preparatory to retirement?

    <p>The Central Government's prior permission must be obtained.</p> Signup and view all the answers

    Which entity has the authority to grant permission for a Central Government officer to take up commercial employment?

    <p>The Central Government.</p> Signup and view all the answers

    What must be included in the application for permission to take up commercial employment?

    <p>The reason for seeking employment.</p> Signup and view all the answers

    What is the consequence if permission is refused when applying to take up commercial employment?

    <p>The officer may lose the right to the contributions permanently.</p> Signup and view all the answers

    Which of the following is true regarding employment under government control?

    <p>It is excluded from the context of employment rights stipulated.</p> Signup and view all the answers

    Which statement correctly reflects the provisions regarding nominations made before the commencement of the Provident Funds (Amendment) Act, 1946?

    <p>Nominees are unaffected by the Act if a sum has already been paid.</p> Signup and view all the answers

    Under what condition may deductions be made from a subscriber's account in a Provident Fund?

    <p>If specified authorities direct the deduction.</p> Signup and view all the answers

    What is the maximum amount that can be deducted from a contributor's account for liabilities owed to the government?

    <p>The total contributions and accrued interest, but not exceeding contributions.</p> Signup and view all the answers

    Which of the following situations would allow for a deduction from a subscriber's Provident Fund account?

    <p>The subscriber has been dismissed from employment for specified reasons.</p> Signup and view all the answers

    What happens to the provisions if a subscriber has already received payment before the commencement of the Act?

    <p>They are unaffected and remain valid.</p> Signup and view all the answers

    What impact does resignation within five years have on deductions from the Provident Fund?

    <p>Full deductions of contributions are possible when specified.</p> Signup and view all the answers

    If an employee resigns from their job, what rules apply regarding deductions?

    <p>Deductions can involve contributions made within five years of employment.</p> Signup and view all the answers

    Which of these statements regarding the amendment provision is false?

    <p>It operates retrospectively to change existing nominations.</p> Signup and view all the answers

    What are the consequences if a subscriber's account accumulates liabilities owed to the government?

    <p>Liabilities can be settled by deducting amounts from contributions.</p> Signup and view all the answers

    What happens if a former Central Government officer takes up commercial employment without permission within two years of retirement?

    <p>They may not be entitled to part of the government contributions.</p> Signup and view all the answers

    Which of the following factors does the Central Government consider when making an order regarding an officer's employment?

    <p>The officer's financial circumstances.</p> Signup and view all the answers

    What is required before the Central Government can declare that a retired officer is not entitled to certain contributions?

    <p>The officer must be given a chance to show cause.</p> Signup and view all the answers

    If an officer does not refund the amount specified in the order within the prescribed period, what can happen?

    <p>The amount can be recovered as arrears of land revenue.</p> Signup and view all the answers

    What must the Central Government do after passing an order regarding an officer's contributions?

    <p>Communicate the order to the officer concerned.</p> Signup and view all the answers

    How does the law ensure that the officer's rights are considered before an order is made?

    <p>By allowing the officer to contest the order.</p> Signup and view all the answers

    What types of employment are officers prohibited from taking up without permission?

    <p>Any commercial employment.</p> Signup and view all the answers

    Which statement best describes the nature of the financial consequences for the officer regarding their government contributions?

    <p>The government contributions may be partially unclaimed based on the order.</p> Signup and view all the answers

    What happens to the provisions of this section in relation to any other provisions of the Act or applicable rules?

    <p>They take precedence over any contradictory provisions.</p> Signup and view all the answers

    Which of the following is NOT a consideration for the Central Government when declaring an officer's entitlement to contributions?

    <p>The geographical location of the commercial job.</p> Signup and view all the answers

    What is a compulsory deposit in the context of a Provident Fund?

    <p>A subscription or deposit that is not immediately repayable until a specified contingency occurs</p> Signup and view all the answers

    Which best fits the definition of 'dependent' as specified in the Provident Funds Act, 1925?

    <p>Immediate family members including spouse, children, and parents</p> Signup and view all the answers

    What characterizes a 'contributory Provident Fund'?

    <p>It requires contributions to be credited by an authority administering the fund</p> Signup and view all the answers

    What distinguishes a 'Government Provident Fund' from other types of funds?

    <p>It is established by public authorities for specified classes of individuals</p> Signup and view all the answers

    Which statement accurately defines a 'Railway Provident Fund'?

    <p>A fund created by railway administration for its employees</p> Signup and view all the answers

    How is the concept of 'contribution' defined in the context of a Provident Fund?

    <p>Any amount credited by authorities as an addition to an individual's fund balance</p> Signup and view all the answers

    Which of the following is mentioned as a specific kind of authority in relation to the management of Provident Funds?

    <p>An authority sanctioned by the Central Government or a State Government</p> Signup and view all the answers

    Which statement correctly defines 'commercial employment' in the context of Central Government officers after retirement?

    <p>Employment in any capacity, including as an agent, under organizations engaged in various business activities.</p> Signup and view all the answers

    What condition must be met for a Central Government officer to avoid repercussions when taking up commercial employment?

    <p>They must obtain prior permission, which if not granted, leads to forfeiture of government contributions.</p> Signup and view all the answers

    Which of the following scenarios would lead to an unfair advantage for a client, according to the stipulations regarding commercial employment?

    <p>An officer using their knowledge from their position to guide a client through regulatory processes.</p> Signup and view all the answers

    What role does the Central Government play regarding officers seeking to take up commercial employment?

    <p>The Central Government evaluates each case individually before determining if contributions should be withheld.</p> Signup and view all the answers

    Under which circumstance can a Central Government officer's practice be set up without jeopardizing their previous roles?

    <p>If the officer has relevant professional qualifications and operates independently from government matters.</p> Signup and view all the answers

    What limitation is imposed on compulsory deposits within Government or Railway Provident Funds?

    <p>They cannot be assigned or charged at any time.</p> Signup and view all the answers

    Which party has no claim on a subscriber's compulsory deposit under insolvency provisions?

    <p>The Official Assignee.</p> Signup and view all the answers

    Upon the death of a subscriber, who is primarily entitled to receive the sums standing to the credit of the subscriber?

    <p>The dependent of the subscriber.</p> Signup and view all the answers

    What must happen to debts incurred by a deceased subscriber or dependent regarding the sums in the fund?

    <p>The sums are free from any debts incurred before death.</p> Signup and view all the answers

    What happens to a compulsory deposit if the subscriber dies and there is a surviving assignee from a previous assignment?

    <p>The dependent's rights to the funds take precedence over the assignee's rights.</p> Signup and view all the answers

    Under what condition may deductions be made from a subscriber's Provident Fund account for liabilities?

    <p>If incurred debts were specifically authorized by law.</p> Signup and view all the answers

    What does the term 'dependent' refer to by law in the context of the Provident Fund?

    <p>Any individual receiving benefits under the fund rules.</p> Signup and view all the answers

    Which of the following statements is incorrect regarding the treatment of compulsory deposits at the time of a subscriber's death?

    <p>They are subject to attachment for any civil court decree.</p> Signup and view all the answers

    What does the phrase 'subject to any deduction authorized by the Act' imply regarding compulsory deposits?

    <p>Only authorized deductions can be made before payment to dependents.</p> Signup and view all the answers

    What is the maximum sum that can be paid to a nominated person without requiring probate or letters of administration?

    <p>Five thousand rupees</p> Signup and view all the answers

    Which document is required for a person to claim a deceased subscriber's balance if there is no nomination?

    <p>Probate or letters of administration</p> Signup and view all the answers

    In the case of assignment made prior to the commencement of the Act, what is required before payment can be made to the assignee?

    <p>Consent in writing from the subscriber or depositor or the entitled person must be given.</p> Signup and view all the answers

    What happens if consent for payment to the assignee is not forthcoming?

    <p>Payment is withheld pending a decision by competent Civil Courts.</p> Signup and view all the answers

    Which of the following individuals may receive payment of the subscriber's sum after death, if no nomination exists?

    <p>Any relative appearing to be entitled</p> Signup and view all the answers

    Under what circumstance will the officer withhold payment of the subscriber's balance?

    <p>If there is no nomination and no claim to probate is presented.</p> Signup and view all the answers

    When can an officer make payment to a dependent under Section 3?

    <p>If the dependent is legally recognized.</p> Signup and view all the answers

    What happens first before any payments are made if an assignment notice has been received?

    <p>All liabilities to the government must be paid first.</p> Signup and view all the answers

    Which clause allows payment to a person authorized to receive funds on behalf of a dependent?

    <p>Clause (a)</p> Signup and view all the answers

    What is required from a person nominated to receive payment in terms of documentation?

    <p>Proof of nomination as specified in the rules of the fund.</p> Signup and view all the answers

    What does the amended provision of the Provident Funds (Amendment) Act, 1946 not affect?

    <p>Payments already made before the Act's date of commencement</p> Signup and view all the answers

    Under what circumstance is the total amount of contributions to be deducted from a subscriber's account restricted?

    <p>If there are outstanding liabilities to the Railway Administration</p> Signup and view all the answers

    What happens if a subscriber resigns their employment within five years and is subject to deductions?

    <p>A portion of the contributions may be deducted</p> Signup and view all the answers

    Which option would be considered a valid basis for deducting from a Government or Railway Provident Fund?

    <p>Misconduct leading to a loss of employment</p> Signup and view all the answers

    What is the impact of the amended provisions regarding cases where a sum has already been paid?

    <p>No retroactive changes apply to those payments</p> Signup and view all the answers

    Which of the following describes the authority's role in making deductions from a subscriber's account?

    <p>The authority's direction is mandatory for any deduction to occur</p> Signup and view all the answers

    In what case would the rules specify that a portion of the subscriber's contributions may be deducted?

    <p>If the subscriber is dismissed for misconduct</p> Signup and view all the answers

    What key condition underlies the amendments regarding nominations made prior to the Act's commencement?

    <p>Old nominations remain valid only if no payment has been made</p> Signup and view all the answers

    What stipulation does the Act lay out regarding the deduction limitations based on the subscriber's account activity?

    <p>Contributions can't exceed the total credited amount for deductions</p> Signup and view all the answers

    Study Notes

    Provident Funds Act, 1925

    • Short title, extent and commencement:
      • Act called the Provident Funds Act, 1925
      • Applies to whole of India, excepting Jammu and Kashmir
      • Enters into force on a date notified by the Central Government

    Definitions

    • Compulsory deposit: A subscription/deposit not immediately refundable, typically for insurance or pensions
    • Contribution: Funds added to a Provident Fund account.
    • Contributory Provident Fund: Fund where members contribute.
    • Dependent: Specific relatives of a deceased depositor/subscriber (e.g., spouse, children)
    • Government Provident Fund: Provident Fund managed by the central government or a state government.
    • Provident Fund: Funds receiving contributions/deposits from employees
    • Railway Administration: Businesses that manage railways/tramways, whether private company or government-owned.
    • Railway Provident Fund: Provident Fund administered by a railway administration

    Protection of Compulsory Deposits

    • Compulsory deposits in government or railway provident funds are not assignable or subject to attachment by courts.

    Provision Regarding Repayments

    • If a sum is due to a subscriber or depositor in a government or railway provident fund, it will be paid to the subscriber or depositor or to the person named in their application.
    • If a subscriber or depositor dies, the payment goes to a dependent or a person authorized by law, unless there's a prior nomination.
    • The government or railway administration is discharged from further obligation once a payment is made.

    Rights of Nominees

    • If a subscriber/depositor nominates someone to receive funds upon their death, that nominee takes priority unless overridden by another valid nomination or cancellation.
    • Circumstances may exist where the nomination is no longer valid (e.g., death of nominee, modification of nomination)

    Power to make deductions

    • From the payable sum of a subscriber/depositor, amounts owed to the government or railway administration can be deducted (but not over a set limit tied to contributions).
    • Deductions can be for debts accrued or for dismissal or resignation within 5 years of employment.

    Withholding/Recovery of Government Contributions

    • Addresses circumstances where government officers take up commercial employment within two years of retirement without prior permission.
    • Defines specific terms like "Central Government officer," "Commercial employment".
    • Includes provisions for permission, refusal, reasons, and consequences for taking up such employment without permission.

    Protection for Acts in Good Faith

    • Legal action cannot be taken against someone acting in good faith under the provisions of this act.

    Power to apply the act to other provident funds

    • The appropriate government can extend the act to other provident funds (excluding Section 6A) established by local authorities or specified institutions on the making of a declaration.
    • The act then applies as if the funds were government provident funds, and the relevant authority manages them.
    • Schedule of institutions for whom this potentially applies.

    Repeals

    • Certain sections, now obsolete, are repealed.

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    Provident Funds Act, 1925 (PDF)

    Description

    Test your knowledge on the Provident Funds Act, 1925, its definitions, and key terms. This quiz will cover important aspects of the Act, including compulsory deposits, contributions, and different types of provident funds in India. Prepare to explore the intricacies of this legislation!

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