Dear All,
One of our employee is interested to contribute the PF amount more than statutory limit i.e 12% and wanted to contribute till 25% (VPF) of tataol B + DA.
I required all your help to understnad whether this complete 25% will be exempted from tax or it will be only till 12%
& The rate of interest which we get 9.5% P.A. will be for accumulated amount from our date of contribution (both Employee & Employer) till we withdraw?
Example :- An employee start contribute towards PF from the year 2000 and he wants to withdraw the money or take loan against his PF contribution for house purchase or construction, in that loan interest will be given with that amiount at the time of loan withdrawal or it is only our contribution amount.
If we accumulate the amount for more than five years, it is tax exempted for withdrawal and do we get the amount of total five years contribution with 9.5% interest P.A. (means 9.5% * 5 =47.5 % interest + Both contribution).
Please clarify
Looking forward for positive replies and suggestions.
Regards
Deepak S
One of our employee is interested to contribute the PF amount more than statutory limit i.e 12% and wanted to contribute till 25% (VPF) of tataol B + DA.
I required all your help to understnad whether this complete 25% will be exempted from tax or it will be only till 12%
& The rate of interest which we get 9.5% P.A. will be for accumulated amount from our date of contribution (both Employee & Employer) till we withdraw?
Example :- An employee start contribute towards PF from the year 2000 and he wants to withdraw the money or take loan against his PF contribution for house purchase or construction, in that loan interest will be given with that amiount at the time of loan withdrawal or it is only our contribution amount.
If we accumulate the amount for more than five years, it is tax exempted for withdrawal and do we get the amount of total five years contribution with 9.5% interest P.A. (means 9.5% * 5 =47.5 % interest + Both contribution).
Please clarify
Looking forward for positive replies and suggestions.
Regards
Deepak S