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P F Deduction under 80c

This query is : Resolved 

29 March 2009

1) Whether Employers contribution towards PF is fully deductable u/s. 80c. ????
2) Pls. highlights rules of PF ( Emloyee & Employers Part under I.T. Act)

29 March 2009


CA Nitin Wadhwani (Expert)
29 March 2009

Employee's Contribution is eligible for deduction u/s 80-C and not employer's contribution.

Manmohan ACA, CS (Expert)
30 March 2009

yes Employers contribution towards PF is fully deductable u/s. 80c.

[Section 17.] "Salary", "perquisite" and "profits in lieu of salary" defined
For the purposes of sections 15 and 16 and of this section,—
(1) "Salary" includes—
(i) wages;
(ii) any annuity or pension;
(iii) any gratuity;
(iv) any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;
(v) any advance of salary;
2[(va) any payment received by an employee in respect of any period of leave not availed of by him;]
(vi) the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule; and

Section 80C(2)(iv)
a contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies; is allowed as deduction

CA Nitin Wadhwani (Expert)
30 March 2009

"a contribution by an individual"-This is employee's contribution and not employer's contribution.

Deepak Goel (Expert)
30 March 2009

A contribution by an individual in Employees Provident Fund is eligible for deduction u/s 80C of the Income Tax Act but any contribution made by employer is not eligible for deduction u/s 80C.

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