Rebate u/s 80 C on PF deposited in Nationilised Banks

This query is : Resolved

S. P. Dhammi (Querist)
Follow

03 July 2009 We are deducting provident fund @ 10% on basic pay of our employees and depositing the same with our share @ 10% in nationalised bank by opening separate accounts of employees under the head "PF A/c of ....Employee Name....".

our query is

1. can we give rebate to our employees on their 10% PF share u/s 80C ?

2. What is the procedure to recognise the provident fund accounts maintained by the private organisations?

Thanks

S. P. Dhammi

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

03 July 2009 First find out whether PF trust is created as per trust act and has been informed to Income tax.

If that is not there and you are depositing on your own in a bank account then pf deduction under section 80c is not allowed and also the employer contribution also will be treated as income in the hands of the employee.

ADITYA

ADITYA (Expert)
Follow

03 July 2009
It seems that your organisation is not registered with Regional Providend Fund Commissioner. Please check-up the applicability of the same.
It is applicable for the organisations employing 20 or more persons and the contribution rate is 12% of Basic Salary.

However, presuming your organisation is not covered under PF Act and for the well-fare measure you are depositing PF in the respective employees account in Nationalised Bank.

You have to first add employers contribution @ 10% in the salary and allow deduction of the total contribution i.e. 20% while calculating deduction u/s 80C subject to conditions laid under the said section

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Pratap Kumar De

BIBIN KUMAR

CA Lalit Kumar Agrawal

CA Ravindra Jain

Yash

Subscribe Now

Rebate u/s 80 C on PF deposited in Nationilised Banks

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA