Queries
Dear All
I am in urgent need of clarification of a query. My Query is that whether the employer contribution to PF taxable to employee (as that is also a kind of income to the employee)
Please clarify.
Looking forward to your replies ASAP.
Thanks
ANA

28th December 2007 From India, Pune

PARTICIPATING IN DISCUSSION:
Amalshere
Sr. Manager Hr
Vats_lokesh
Asst Manager Hr
+1 Other

Recognised PF:
It is a scheme to which the Employee’s Provident Funds and Miscellaneous Provisions
Act, 1952 applies. According to this Act, any establishment, which employs 20 or more persons, is obligated to register under the Act and start a PF scheme for the employees in the organisation. Such scheme has to be approved by the Provident Fund Commissioner as well as the Commissioner of the Income Tax.
Taxability:
Employee’s contribution: rebate u/s 80C is available
Employer’s contribution: exempt up to 12% of salary, excess of 12% to be included in gross salary.
Interest on PF: exempt u/s 10 up to 9.5% p.a Interest credited in excess of 9.5% to be included in gross salary.
28th December 2007 From India, Mumbai
Dear,
The benefit of employers contibution is taken by the employer while declaring his expense and in no way included in the gross salary of the employee. The taxability of PF can only be considered in case of withdrawal from the fund, other wise in cases whatever the amount contibuted by the employer 12 % or more is not at all taxable to the employee.
Thanks & Regards
Amal Shere
28th December 2007 From India, Mumbai
Dear
Employer contribution is not include according to income tax 2001. The tax ability of PF can only be considered in case of withdrawal from the fund, other wise in cases whatever the amount contributed by the employer more is not at all taxable to the employee.
Taxability:
Employee’s contribution: rebate u/s 80C is available
Employer’s contribution: 1/3 of salary,
Interest on PF: 16% of Interest rate.
16th June 2014 From Pakistan, Lahore
employer contribution towards recognized pension scheme does not come under groos income of employee and hence not taxable.
17th June 2014 From India, Delhi
Pension scheme is different thing and employer contribution is different thing. Pension in case will be taxable when he will approved by the FBR. other wise pension will be not taxable. Employer contribution will not be include. In other case employer contribution will be include. Let spouse Employer contribution is 20000. he will not include in income from salary up to 100000, 16 % of interest and 1/3 of basic salary ( Basic salary mean dearness allowance and salary) which amount is less, he will be taxable.
23rd June 2014 From Pakistan, Lahore
Dear All,
Just mail us at garglokesh92@yahoo.in all your queries regarding Taxes and Business Laws.
Regarding PF and you may avail our services e.g. ITR filing and get your tax planning to reduced or avoud tax
E Consultants Team !
5th June 2015 From India,
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