income tax on PF > 12% basic of employer contribution

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This query is : Resolved

Ramesh (Querist)

19 March 2010 Dear sir
as we know that if the employer share is of PF contribution is more than 12% of baisc will be taxed in the hands of employee as it is income in the hands of employee for the Financial year 2009-2010.
But Please clarify that the employer is paying 12% basic along with it he is also paying the PF administration charges and overall comes to 13.61% of the employer contribution though it is restricted to 12% of Employer share.
regards
Ramesh

Prakash Jasani

Prakash Jasani (Expert)

19 March 2010 yes employer share is 12% on basic along wth admin charges

Ramesh

Ramesh (Querist)

19 March 2010 Dear sir
you mean that overall employer share of PF is12% basic ? it is ok

it means that 13.61% (13.61-12) 1.61% is the income of employee and taxed occordinly ?

regards
Ramesh

Prakash Jasani

Prakash Jasani (Expert)

19 March 2010 yes

yes income of employee but there is no any tax on that

pf contriution of employer not taxable perqisite in d hands of employee

you check in d salary section u wll get the better idea

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