What is the P.F. rules under income tax law f.y. 2008-09?

for example, an employee, his basic salary is Rs. 5000/- and second employee, his basic salary is Rs. 3000/- and third employee, his baisc salary is Rs. 2500/-
Hence, they are getting basic besides other allowance.
Actually I want to know that what is the lowest basic salary on which P.F. would not be applicable in other word P.F. would note be deducted.
So, Pls. reply me that I should deducte P.F. amount from theirs salary or not.

Basic is not the base for attracting deduction of PF. On the contrary Basic (irrespective of the amount) is the amount on which the PF will be deducted.
It requires a company to opt for a PF if the minimum number of members viz., 12.
for example if 12% deducted on the basic of every month the total deduction for the year can be accounted against 80CC while submitting Income tax return. For example if the Income is 1.25.000 p.a and the PF deduction has made 4800 means his IT on salary can be computed for (Rs1,25000 - 4800) only

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