Deduction under ch-vi a

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sonu gupta

sonu gupta (Querist)
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28 July 2011 EMPLOYER CONTRIBUTION TO PROVIDENT FUND IS ELIGIBLE FOR DEDUCTION UNDER CH-VIA FROM EMPLYEE PERSPECTIVE

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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28 July 2011 Both the employer and employee contribute towards Provident Fund. The contribution made by employees is eligible for deduction u/s 80C sub to max of Rs 1 Lac. The contribution by the employer is over and above salary of employee and therefore is seen as income of employee and taxed in excess of 12% i.e. Employers contribution in excess of 12% is added with the salary income of employee. Interest income Exempt upto 9.5%. Interest exceeding 9.5% shall be added to employee's Salary Income

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 July 2011 The contribution by the employer is over and above salary of employee and therefore is seen as income of employee and taxed in excess of 12% i.e. Employers contribution in excess of 12% is added with the salary income of employee.

So since there is no income in employer contribution the same is not allowable as deduction u/s 80C.

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