Understanding Employer Tax Exemptions on EPF Contributions: What Are the Limits?

Dear All, Employer contributes 12% of Basic + DA to EPF Fund. In connection to this I have following queries: –

• Can employer file for the Tax Exemption for the contribution made by him towards the EPF?
• If yes, then is there any limit of it?

dsv

The employer will be taxed on the net profit, and the net profit is arrived at after taking into account the expenditure, including the contributions paid towards EPF and ESI. Therefore, there is no need for any separate claim for exemption. The contributions made by the employer towards EPF will be allowed as expenditure for the purpose of determining their tax liability.

Regards,

Madhu.T.K