PF wage ceiling
This query is : Resolved
Rajkumar Gutti
(Querist)
30 July 2026
Under social security code 2020, New EPFO scheme 2026 launched by Central Govt. W. E. F. 29/06/2026
In this scheme mandatory wage ceiling is Rs. 15000/-
And PF. Contribution rate is 12% for both employee & employer. Hence wage ceiling is caped for 15000/- salary
If above 15000/- salary employee wants to contribute PF, then it is voluntary for both, but subject to employee consent.
My question as under-
If above 15000/- salary PF contribution deducted by employer is admissible for deduction as expenses in profit and loss account from business income.
Vive versa can employee get exemption u/s 80C
In personal income tax.
In this scheme mandatory wage ceiling is Rs. 15000/-
And PF. Contribution rate is 12% for both employee & employer. Hence wage ceiling is caped for 15000/- salary
If above 15000/- salary employee wants to contribute PF, then it is voluntary for both, but subject to employee consent.
My question as under-
If above 15000/- salary PF contribution deducted by employer is admissible for deduction as expenses in profit and loss account from business income.
Vive versa can employee get exemption u/s 80C
In personal income tax.
31 July 2026
Yes to both. The employer's contribution to PF for employees drawing above ₹15,000 is an allowable business expense under Section 36(1)(iv) (subject to Section 43B deposit rules). Similarly, the employee can claim tax deduction on their contribution under Section 80C up to ₹1,500,000 (under the Old Tax Regime).
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
- Tax on Amount transferred in HUF Account
- Nursery business
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- Intimation under section 245
- GST input credit on commercial property
- Gift to nri relatives residing in usa
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
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
CAclubindia
