hi,
need some help on the case.
if the employee contributing more than 12% in the PF account as VPF
for example 100% of his basic and DA assuming his basic is more and also does not worry about inhand
1. can the situation be possible
2. will above 12% taxable (assuming intrest is and employer contri is).
3. why 12% ? is mandatory
From India, Delhi
Hi
1) Yes. Employee can contribute 100% of his wages as VPF
2) No tax for either 12% or on entire contribution. Entire amount shall be considered for Tax Exemption
3) As per PF Norms 12% is mandatory on full basic or limited to 780/-
From India, Bangalore
6331) Yes. Employee can contribute 100% of his wages as VPF
2) No tax for either 12% or on entire contribution. Entire amount shall be considered for Tax Exemption
3) As per PF Norms 12% is mandatory on full basic or limited to 780/-
From India, Bangalore
hi
thanks in deed for the valuable inputs.
plus also wanted to discuss the percentage set..
the questions popping again again why 12% why not 11% or 14%
yes its a norm but on what calculations is it set...
6500 basic minimum for eligibility and 780 on what parameters.
also if would tax exemption can i say i can live entire life with no inhand and all in my PF ? saving tax too..
From India, Delhi
thanks in deed for the valuable inputs.
plus also wanted to discuss the percentage set..
the questions popping again again why 12% why not 11% or 14%
yes its a norm but on what calculations is it set...
6500 basic minimum for eligibility and 780 on what parameters.
also if would tax exemption can i say i can live entire life with no inhand and all in my PF ? saving tax too..
From India, Delhi
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PF Accounts Details.pdf
Pf details.doc