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Provident Fund Tax Exemption
Under the Provident Fund scheme, it is notified that any payment made to an employee from a provident fund to which the Provident Fund Act, 1925 applies, or from any other provident fund set up by the central government and notified by it in this behalf, is exempt from tax.
Gratuity Taxability
The taxability of gratuity depends on the recipient:
* For government employees, there is no tax on the gratuity.
* For private sector employees, if they are covered under the Payment of Gratuity Act, 1972, then the gratuity is exempt from tax subject to a maximum of Rs 10 lakh or 15 days' salary for each completed year of service (or part thereof).
From India, Bengaluru
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Under the Provident Fund scheme, it is notified that any payment made to an employee from a provident fund to which the Provident Fund Act, 1925 applies, or from any other provident fund set up by the central government and notified by it in this behalf, is exempt from tax.
Gratuity Taxability
The taxability of gratuity depends on the recipient:
* For government employees, there is no tax on the gratuity.
* For private sector employees, if they are covered under the Payment of Gratuity Act, 1972, then the gratuity is exempt from tax subject to a maximum of Rs 10 lakh or 15 days' salary for each completed year of service (or part thereof).
From India, Bengaluru
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There has been a recent amendment in the EPF Act, where a person whose EPF contribution is less than 50,000/- and/or has less than five years of service is taxable under the Income Tax Act. The EPF Authority will recover TDS on the final payment of EPF amount to a member.
From India, New Delhi
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From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
EPF,ESIC & GRATUITY .xls
EPF Withdrawals - New Provisions & Rules related to TDS.pptx
EPF EXEMPTION FOR TRAINEES CIRCULAR 427.pdf