EMPLOYER PF CONTRIBUTION TAXABILITY

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This discussion clarifies the taxability of employer contributions to a Provident Fund (PF). Generally, employer contributions to a recognised PF are tax-exempt. However, if the contribution exceeds 12% of your salary, the excess amount may be considered taxable income. It's also noted that Section 80CCD(2) applies to NPS and certain pension schemes, not standard PF contributions.

Javed Memon

Javed Memon (Querist)
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30 July 2022 Respected Sir ,
My Emloyer Added PF Employer Contribution In My Salary
It is Exempt or Taxable ?
can I Calim as exempt Income in Income Tax Return

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2022 Employers contribution of PF to recognized fund is tax free under IT act

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 July 2022 If the employer's contribution to the recognized provident fund is in excess of 12% of salary, then such contribution can be added to salary of employee. Otherwise, employer committed a mistake to be corrected from their end.

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Javed Memon

Javed Memon (Querist)
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30 July 2022 Thanks al to of sir for Replies ,
But 80ccd(2) is for Pension Scheme , it will be applicable also in PF Contribution ???

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 July 2022 80CCD(2) is not applicable to RPF, but applies to NPS and pension scheme notified in 2003.

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Javed Memon

Javed Memon (Querist)
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30 July 2022 Thanks a lot For Sir For Replies