Common use of Provident Fund Clause in Contracts

Provident Fund. A fund established in India under the Provident Fund Act of 1952 or the Employees’ Provident Funds and Miscellaneous Act of 1952 to provide current and former employees of Indian employers retirement benefits in consideration for services rendered, provided that fund: 1. Does not have a single beneficiary with a right to more than five percent of the fund’s assets; 2. Is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in India; 3. The fund is generally exempt from tax in India on investment income under the laws of India due to its status as a Provident Fund; and 4. Contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed $50,000 annually, applying the rules set forth in Annex I for account aggregation and currency translation.

Provident Fund. A fund established in India under the Provident Fund Act of 1952 or the Employees’ ' Provident Funds and Miscellaneous Act of 1952 to provide current and former employees of Indian employers retirement benefits in consideration for services rendered, provided that fund: 1. Does not have a single beneficiary with a right to more than five percent of the fund’s 's assets; 2. Is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in India; 3. The fund is generally exempt from tax in India on investment income under the laws of India due to its status as a Provident Fund; and 4. Contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed $50,000 50.000 annually, applying the rules set forth in Annex I for account aggregation and currency translation.