Confused About PF Deductions: Should It Be on Gross Salary or the 15k Ceiling?

Hi Team,

Basic - 12500, HRA - 6250, LTA - 3000, CEA - 200, Performance allowance - 2000, Other allowances - 1050. Gross Total - 25000.

Now, PF should be deducted on a) 25000? b) 25000 - 6250 (HRA)? c) 25000 - 6250 HRA - 3000 LTA - 200 CEA? d) Or, if I deduct as per the ceiling limit 15000, will that be okay?

Thanks,
Jack

Hi Jack,

Since all the combinations under a, b, c & d exceed the cutoff of Rs. 15,000, it's good enough if you would deduct Rs. 15,000 (15000 @ 12% = 1800).