Employer Contribution of PF @12% included in form 16

Dear Sir,

Form 16 issued by the Employer (A Govt of India Undertaking) included PF Contribution @ 12% as income hence Tax deducted on same,details of Pay slip is as follows :-

Income Side

Basic Rs-59,350/-

DA Rs- 5,935/-

PF @ 12% (On Basic and DA) Rs 7,834/-

Total (59350+5935+7837) X 12 = 8,77,464 /- (Form 16 also shows Rs 8,77,464/-

Deduction side

PF  Rs-7,834/-

7834 X 12= 94008/-

So my query is Total Income will be 8,77,464

OR

8,77,464-94008=7,83,456 if yes how to show this figure (7,83,456/- ) in ITR because Form 16 is showing Rs 8,77,464/-  

Thanx with Regards


Attached File : 3170892 20200825090426 forum case.xlsx downloaded: 117 times
Replies (3)
Quick Summary
This discussion addresses a common query regarding employer PF contributions being included as income in Form 16, leading to TDS. The consensus is that the full amount should be shown in your salary income, and then the employee's PF contribution (along with other eligible expenses) can be claimed as a deduction under Section 80C, up to the limit. The employer's contribution itself should generally not be treated as taxable income.

Contribution to pf is deductible Under section 80c. so in the column against income from salary show rs. 877464. claim the pf deducted including employer's contribution up-to an extent of rs. 1.5 lakhs and show the balance amount as total income. generally employer's contribution towards pf shouldn't be included in salary
Originally posted by : V Vijay Narayan Rao
Dear Sir,

Form 16 issued by the Employer (A Govt of India Undertaking) included PF Contribution @ 12% as income hence Tax deducted on same,details of Pay slip is as follows :-

Income Side

Basic Rs-59,350/-

DA Rs- 5,935/-

PF @ 12% (On Basic and DA) Rs 7,834/-

Total (59350+5935+7837) X 12 = 8,77,464 /- (Form 16 also shows Rs 8,77,464/-

Deduction side

PF  Rs-7,834/-

7834 X 12= 94008/-

So my query is Total Income will be 8,77,464

OR

8,77,464-94008=7,83,456 if yes how to show this figure (7,83,456/- ) in ITR because Form 16 is showing Rs 8,77,464/-  

Thanx with Regards

Dear Rao Ji

 

First show full amount and hereafter claim deduction of PF under section 80C

But Sir Employer is treating his PF Contribution as Income and deducing TDS on PF also

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details