Income Tax
This query is : Resolved
02 March 2021
The contribution made by an employer to its employee's provident fund account used to be fully tax free in the hands of the employee without any monetary limit as long as it did not exceed 12% of the basic salary and dearness allowance. However the Finance Act, 2020 has amended the situation and has put an absolute cap of ₹7.50 lakh on the aggregate of contributions made by an employee to recognised provident fund, National Pension System scheme and an approved superannuation fund taken together in a year. Any amount in excess of Rs. 7.50 lakh contributed by the employer to these accounts taken together shall be treated as perquisite in the hands of the employee and will be included in his salary and taxed at the slab rates. Even the interest or income accrued in respect of such excess contribution to these three accounts shall also be included in the value of perquisite of the employee year after year.
My question is above amendment is applicable from which Financial Year ?
My question is above amendment is applicable from which Financial Year ?
25 September 2021
FY 2020-21. .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Applicability of GST on Salary Reimbursement Component
- Tds on commission charges
- Minimum tax payable to file Updated return
- Dep. as per companies act
- Salary from Qatar in Dollars in India
- UDIN ISSUE
- CHECK RELATED
- Tax rate change regarding
- GST Intimation due to Government took possession of Business Premises under PPE Act
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
Featured
11 September 2026
Audit Executive
RBSM Corporate Advisors Private Limited
Pune
CA
View Details
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
08 September 2026
Semi-Qualified Assitant
Subrahmanyam & Sivudu CA Firm
Hyderabad
CA Inter
View Details
CCI
Pro
CAclubindia
