Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear seniors,
In our organisations we have CTC concept, we consider Emlpoyers contribution of PF in CTC itself.
Can you Please let me know shoud we deduct Tax on PF Employers contribution also?
Is leave Encashment taxable?
Please help us with the best tax saving salary structure
Attaching our Current Salary Structure.
Thanks & regards
Silvy P. Thomas

From India, Pune

Attached Files
File Type: pdf Salary Structure Format.pdf (9.8 KB, 1175 views)

Dear Silvy P.Thomas,
Please not Employer contribution on PF is not taxable even if it is included as part of CTC indicated by you.
Leave encashment is taxable upon resignation but is exempt from tax subject to a ceiling upon superannuation.
You have already considered Conveyance exemption Rs.800/ month and Medical reimbursement Rs.15000/ anum. Additionally you can extend 15% of basic salary towards superannuation contribution to LIC and LTA (subject to a two claims in a block of four calendar years) which is exempt from tax. LTA is not taxable provided the employee undertakes the travel and produces bills to that effect. You can also extend Mediclaim coverage to the employee and his family.
Trust the matter is clarified

From India, Madras
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™