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My employer included his contribution towards PF (12%) to the taxable income
But as per my knowledge employer's contribution (12%) towards PF is totally exempt from taxable income.
Please answer immediately.
Thanks ,
Sunil Patel
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Hi Sunil,
The total accumulated PF contribution is not taxable. However "
income tax will be deducted at source (TDS) if the member leaves the services before completion of five years the withdrawal PF amount is more Rs.30,000/-
TDS will be deducted @10% provided PAN is submitted. In case Form No.15G or 15H is submitted by the member, then no TDS will be deducted.
TDS will be deducted @ maximum marginal rate (34.608%) if a member fails to submit PAN and no Form15G or 15 H.
TDS will not be deducted if
PF is transferred to another PF account
If Pf payment is less than 30,000 and service period is also less than 5 years.
If the member with draw PF after 5 years of continuous service including service with former employer.
If the termination of service is due to ill health of member, discontinuation /contraction of business by Employer.
TDS on PF withdrawal has been revised from Rs 30,000/= to Rs 50,000/= and the Circular with copy of GO is attached.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; E-mail : )

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File Type: pdf TDS on withdrawal limit Rs 50000 - 2016.pdf (222.3 KB, 33 views)

The Gross Salary is to be taken for calculation of TDS and not CTC, if they have taken then it is wrong. Please consult the Accounts In Charge or the Chartered Accountant and get the clarification from them.
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