income tax on PF > 12% basic of employer contribution

This query is : Resolved

Ramesh (Querist)
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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)
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19 March 2010 yes employer share is 12% on basic along wth admin charges

Ramesh

Ramesh (Querist)
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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)
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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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