About EPF

Others 569 views 2 replies

Please explain the following EPF calculation/contributions is OK or NOT ?

Employees Contribution

a) Basic is Rs. 20,000/-  they decided to deduct EPF on Rs. 10,000 @ 12% Rs. 1,200/- or the minimum of Rs. 6,500/-

b) Basic is Rs. 20,000/-   @ 12%  Rs. 2,400/-

c) Basic is Rs. 20,000/-   @ 20% Rs. 4,000/- above Rs. 2,400/- is taxable

 

Employer Contribution

a) Basic is Rs. 20,000/-   @ 8.33% on Rs. 6,500/- = Rs. 541/-

b) Basic is Rs. 20,000/-   @ 8.33% on Rs. 7,500/- = Rs. 625/-

c) Basic is Rs. 20,000/-   @ 8.33%  Rs. 1,666/- 

How to round off 

if below 0.50 is 0 or above 0.50 is Rs. 1 

Thanks

Replies (2)

Employees contribution

a) Cannot be done

b) This is correct

c) Entire Rs. 4000/- is taxable in the hands of the employee.

Originally posted by : P. RAJESH KUMAR

Employees contribution


a) Cannot be done

b) This is correct

c) Entire Rs. 4000/- is taxable in the hands of the employee.

Thank you pl explain these also.

Tax on Rs. 4000/- or on Rs. 1600/-


CCI Pro

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