Deduction under ch-vi a

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sonu gupta

sonu gupta (Querist)

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)

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)

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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