Max VPF a private salaried class employee can claim to avoid tax as per new income tax law. Like last year Income Tax department created a new law according to which if contribution to PF is more than 2.5 Lakh then the amount beyond this 2.5L will be taxable. Something like that.
So please confirm me how much one can contribute beyond PF amount so that access VPF will not fall in taxable category.
Thanks
From India, Meerut
So please confirm me how much one can contribute beyond PF amount so that access VPF will not fall in taxable category.
Thanks
From India, Meerut
Provident Fund and Voluntary Contribution of PF are exempted within the limits of 80C. 80C has a capping of Rs 1,50,000. As such even if you contribute more than Rs 150000 towards PF, the tax benefit will be restricted only to Rs 1,50,000 only. This shall include PF, Life insurance premium, housing loan principal repayment, fixed deposit for more than 5 years' duration and a few other investments. Therefore, if you do not have other investments coming under the exemption admissible under 80C, ie, housing loan, life insurance, FD etc, then by contributing to PF for any amount higher than Rs 150000 will not give you any benefit in respect of income tax.
From India, Kannur
3896From India, Kannur
Hi Madhu.T.K I am asking for the rule govt came last year in which pf/vpf more than 2.5 L amount would be taxable.
From India, Meerut
From India, Meerut
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
P-TAX.csv