Hi Everyone,
Our company provides facility of Provident Fund to employees. For those whom it is applicable, company provides contributory PF. But for those whom it is not applicable, company provides EPF deduction with the entire deduction being borne by the employee.
Now my question is, does the employee get the full amount deducted from him/her salary as exempt from Income Tax. Or do we need to break it up and he gets tax exemption only for the 12% that is actually supposed to be the employee's contribution to EPF?
Kindly provide me an answer to this query at the earliest.
Regards,
Gaurang S
Our company provides facility of Provident Fund to employees. For those whom it is applicable, company provides contributory PF. But for those whom it is not applicable, company provides EPF deduction with the entire deduction being borne by the employee.
Now my question is, does the employee get the full amount deducted from him/her salary as exempt from Income Tax. Or do we need to break it up and he gets tax exemption only for the 12% that is actually supposed to be the employee's contribution to EPF?
Kindly provide me an answer to this query at the earliest.
Regards,
Gaurang S