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Recognized Provident Fund
Companies can set up Provident Fund by joining scheme of EPFO or by privately forming a PF Trust according to laws laid down in the Employees' Provident Fund Act, 1952. If such private PF is recognised by the Commissioner of Income Tax then it is a Recognized Provident Fund. Usually firms that employ 20 or more people would have Recognised Provident Fund. Tax benefits on both employer's contribution and employee's contribution is higher in Recognized PFs than in Unrecognized PFs.