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Employer contribution of provident fund

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This query is : Resolved

Juhi Agrawal (Querist)

21 March 2013 Hi All,
I Have a confusion regarding employers contribution of PF to be included in Gross Total Income.
My HR says that Employer contribution isnt added to Gross salary neither it is added under head PF for claiming 80C whereas according to me Employer contribution is added in Gross salary and is same claimed under head Provident Fund us 80C?
I have a great confusion in that bcoz it deviates the amount to be claimed u/s 80c if employer contribution is added

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

21 March 2013 Under the head Income from salary, PF contribution by the employer is exempted from tax up to the limit of 12% on basic. So employer PF contribution is basically exempted from Income tax, hence exempted income is not eligible for claim as deduction u/s.80C. so no need to add as income and no need to considered as deduction

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