Deduction of PF against CTC package of Salary

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Anil Kumar Kedia (Querist)

01 August 2008 My question is : I am a salaried question and company has given me a package of Rs. 3.50 Lacs per annum as Cost to Comapny. Accodingly company giving me a monthly Salary Rs. 25000.00 and deducting PF both sahare Emloyee and Employer share from my salary . I want to know under section 80C is both share of PF allowable to me or not. Please clarify me. Thanks

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

01 August 2008 How can Employer contribution be deducted from employee? It will then be employee contribution only.

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)

01 August 2008 Only the employee pf share is eligible for under section 80C. While getting your Form 16 from the employer they will mention your Gross salary (12*25000 + other benfits given by monetary and it excludes the employer share to PF)

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)

01 August 2008 Normally today all companies as given the salary structure including the Employers PF Share, Employers ESI share if any, in the CTC calaculation. But actually, it is not included in your Form 16.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

01 August 2008 In any case if the contribution is deducted from employee, it can by no strech of imagination be called employe's

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

01 August 2008 I think that Cost to the Company means Salary + Cost incurred by the employer to meet other obligation such as Employer's share of PF & ESI etc. However, Form 16 will give the details of 1st part,i.e, salary and deduction of PF, being employee's own share will be taken for deduction under section 80C. CTC is the term used to explain the salary structure to an employee which incorporates all direct and indirect cost incurred and borne by the employer in connection with that employee. The employer's contribution towards PF is an expense and obligation of the employer and is allowed as a business expense while the beneficiary is the concerned employee.

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